The Essence and Effects of Performance Appraisal Systems: Adopting the "Expectation/Reality" Discrepancy Model

Chu, C. M. 1998. The Essence and Effects of Performance Appraisal Systems: Adopting the "Expectation/Reality" Discrepancy Model. NTU Management Review, 9 (1): 113-151

Chen-Ming Chu, Department of Business Administration, Chung Yuan Christian University, Taiwan, R.O.C.

Abstract

Performance appraisal plays an important role in human resource management. On the one hand, performance appraisal is a critical internal control mechanism in an organization. On the other hand, the various personnel decisions made in accordance with performance appraisal are concern to the privileges of the employees. However, there frequently exist some obvious discrepancies between the expectation and the reality on performance appraisal systems. This study attempts to adopt an empirical model that examines the discrepancies and then to analyze the essence and effects of performance appraisal systems. In hopes of effectively examining this subject, a total of 369 questionnaires were collected from 41 large enterprises. This study concludes the four important results:
(1)There are significant discrepancies between the expectation and the reality, including the purposes, raters, criterions, methods, timing, and feedback of the performance appraisal systems.
(2)The employees hope that performance appraisal systems could: pay more attention on the developmental purpose, increase the ratios of self-appraisal and peer-appraisal, emphasize the qualitative and process criterions, inform the content and criterions, release the limitation about the ranking grades, shorten the appraisal intervals, enhance the feedback and the communication channel.
(3)There are significant correlation between the discrepancies and the effectiveness. The more obvious discrepancies is measures, the lower the effectiveness of the performance appraisal.
(4)The effects of discrepancies on the fairness, acceptability, and satisfaction are relative stronger. The effects of discrepancies on the job involvement, organizational commitment, and turnover rates are relative weaker.
 


Keywords

Performance appraisal Employee’s expectation Discrepancy analysis


NTU Management Review No. 1, Sec. 4, Roosevelt Road, Taipei, 10617 Taiwan
3F, Bldg. 1, College of Management, National Taiwan University

TEL: +886-2-33661026  +886-2-33665404  

E-mail: ntupmcenter@ntu.edu.tw

Subsidized by Research Institute for the Humanities and Social Science, Ministry of Science and Technology, Executive Yuan.

Subscription