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The current chapter focuses on environmental and organizational factors that affect the performance appraisal context, performance evaluations, and rating accuracy. Drawing on the extant literature and focusing on current organizational practices, we propose a dynamic multi-level model of performance rating that takes these distal factors into consideration. In doing so, we also provide propositions explicating causal linkages between these distal factors, more proximal performance appraisal factors, and ultimately the accuracy of performance ratings. Furthermore, we identify current and emerging directions in performance appraisal research and practice. The implications of the current and emerging trends are then discussed in the context of our proposed model.

We outline the standards for “good” performance measures and propose the Data Envelopment Analysis (DEA) as a method for performance measurement on individual level.

Using the example of a German cooperative bank with a cohort of 40 employees, we apply a multi-stage DEA approach to measure employee performance and report on the results. Based on those results a DEA-based approach for a strategic performance appraisal process is introduced.

We illustrate that DEA provides clear feedback information on an individual level, which enables management to accurately identify fields of specific improvement.

The proposed approach for a strategic performance appraisal process is yet of theoretical nature. Consequently, the practical implementation of this approach is a purpose of further research.

Scholars have pointed out the need for improvement and refinement in public management research, also depending on the role of public administration for sustainable development. Because government organizations employ a substantial portion of the workforce, management practices in the public sector are critical areas for designing, implementing and delivering policies that can achieve the goals set forth in the 2030 Agenda for Sustainable Development. For these purposes, and in implementation of the Next Generation EU (NGEU) programme, Italy recently launched an ambitious National Recovery and Resilience Plan (NRRP) which includes, among other things, upskilling goals for staff employed, following the modernization process that has involved the Italian public sector in the last decades, with the Decree n. 150/2009. Aiming both to understand the extent of the application of the reform and to answer some basic questions (why, what and how) concerning Individual Performance Appraisal Systems (IPAS), we conducted a content analysis on the 220 documents already produced by the Italian Ministries. The study has been conducted in two different steps of the reform process and provides solid evidence of the reforms' effects on designing and implementing individual performance systems. The analyzed documents reveal no longer-term vision in implementing the IPAS that involves some critical performance management utilities such as training, development, fair pay and deployment of employees, raising new questions about a sustainable approach to the individual performance management process even in public organizations.

This chapter explores leadership failure by way of performance appraisal. A series of experiences in two different organizations with two different managers is examined through the lens of four critical performance appraisal mistakes – lack of objectivism (assessment based upon own experiences, beliefs and expectations), freshness (relying on recent events with little consideration for past behavior), causal attribution (flawed interpretation of employee behavior) and first impression (assessment based upon something learned from early introduction to employee, often the first encounter) These mistakes represent a continuum of infractions for which ethical leadership is offered as an antidote. Ethical leadership strategies are provided to support employees, managers, teams, and organizations in counteracting, avoiding, surviving and eliminating these mistakes, respectively.

This book aimed to conceptualise a construction workforce management model suitable for effectively managing workers in construction organisations. To this end, this chapter presents the conceptualised model, which consists of seven workforce management practices with their respective measurement variables. Drawing from existing theories, models, and practices, the chapter concludes that a construction organisation that will attain its strategic objectives in the current fourth industrial revolution era must be willing to promote effective recruitment and selection, compensation and benefits, performance management and appraisal, employee involvement and empowerment, training and development, as well as improving workers emotional intelligence and handling external environment pressure. These practices can promote proactiveness, participation, and improved skills and can lead to effective commitment, better quality, and flexibility within the organisation.

This paper examines the relationship between human resource practices in 173 hospitals in the United Kingdom and four organizational outcome categories – clinical, financial, employee attitudes and perceptions, and patient attitudes and perceptions. The overarching proposition set forth and examined in this paper is that human resource management (HRM) practices and delivery of care practices have varied effects on each of these outcomes. More specifically, the authors set forth the proposition that specific practices will have positive effects on one outcome category while simultaneously having a negative effect on other performance outcomes, broadly defined.

The paper introduces a broader stakeholder framework for assessing the HR–performance relationship in the healthcare setting. This multi-dimensional framework incorporates the effects of human resource practices on customers (patients), management, and frontline staff and can also be applied to other sectors such as manufacturing. This approach acknowledges the potential for incompatibilities between stakeholder performance objectives. In the healthcare industry specifically, our framework broadens the notion of performance.

Overall, our results provide support for the proposition that different stakeholders will be affected differently by the use of managerial practices. We believe that the findings reported in this paper highlight the importance of examining multiple stakeholder outcomes associated with managerial practices and the need to identify the inherent trade-offs associated with their adoption.

The impact of emotional displays on ratings of workplace performance was examined using scenarios presented to college students (N=175). Four scenarios featured either a male or female employee expressing either anger or sadness. Contrary to previous findings in research on gender differences, the only consistent significant finding was the type of emotion displayed. Displays of anger resulted in reductions in perceptions of organizational commitment (F(1,170)=19.78, p<0.001) and job performance (F(1,169)=12.19, p<0.001). The differences in emotion displayed were expected; however, the null findings of gender effects were unexpected and are discussed here.

Need of the Study: In an ever-changing environment, the use of artificial intelligence (AI) to accelerate the business is inevitable. By introducing various advanced technologies to improve productivity, technology users are well aware of the challenges ahead.

Purpose: This chapter aims to understand AI technology and the challenges it faces in noted domains.

Methodology: This chapter is based on secondary research, and relevant information has been gathered from various secondary sources such as research articles, newspaper articles, books, and websites. There is a considerable gap between the expected outcomes of AI and the reality of AI in human resource (HR) practice.

Findings: The study’s outcome focuses on AI challenges in human resource management (HRM) functions such as recruitment and selection, learning and development, and performance appraisal. Considering the numerous benefits, it becomes essential to understand these issues/challenges so that they can be adequately addressed.

Practical Implications: This study highlights the issues such as complexity of HR practices, organisation readiness, staff acceptability, and responsibility for AI implementation in HRM, and other related issues and proposes prudent response to these challenges that will be embraced by both employees and employers, thereby adding novelty to this research.

Artificial Intelligence (AI) is one of the newest technology that is quickly advancing and can be utilised to improve human resource competence in the age of rapid digital transformation. The present competitive scenario demands accurate data that need to be collected and analysed for organisational growth.

Purpose: The research examines the applications and usage of AI in performance management and further analyses the future of PM from the perspectives of AI.

Methodology: The study is conceptual and relies on secondary data from research papers, publications, HR blogs, survey reports and other sources. Employee performance and attitudes were monitored using digital technologies, big data analytics and AI. The quality of employee performance continues to increase with the integration of AI, enabling predictive analytics to increase employee performance.

Research Implication: In employee performance appraisal, a digital performance management system leads to openness and honesty with time, effort and sincerity. It is based on the performance management system’s practical usefulness.

Theoretical Implication: The study’s findings provide HR managers, academics, IT professionals and practitioners with an understanding of how AI may be used for performance management and its consequences on their operations. In addition, the connection between the HR devolution theory on performance management and AI is discussed.