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The purpose of this paper is to identify the specific steps organizations can take to create value-added appraisal systems.

The authors synthesize 30 years of their research, including countless focus groups and surveys with managers at all levels, to identify the specific steps organizations can take to create value-added appraisal systems.

The paper explains ten key lessons for improving any organization’s performance appraisal system.

The authors believe that the lessons described in this paper can be applied in all organizations, and not to apply these lessons invites ineffective and potentially destructive appraisal practices.

The paper provides a unique set of lessons that organizations can use to design or re-design their performance appraisal systems and practices.

In recent years, practitioners have identified a number of problems with traditional performance management (PM) systems, arguing that PM is broken and needs to be fixed. In this chapter, we review criticisms of traditional PM practices that have been mentioned by journalists and practitioners and we consider the solutions that they have presented for addressing these concerns. We then consider these problems and solutions within the context of extant scholarly research and identify (a) what organizations should do going forward to improve PM practices (i.e., focus on feedback processes, ensure accountability throughout the PM system, and align the PM system with organizational strategy) and (b) what scholars should focus research attention on (i.e., technology, strategic alignment, and peer-to-peer accountability) in order to reduce the science-practice gap in this domain.

This paper aims to review the challenges of performance appraisal in organizations and argue that these challenges can and must be overcome.

The authors review research on performance appraisal in organizations and on claims that organizations are abandoning performance appraisal.

Structured performance appraisals are still the norm in organizations around the world. There are clear and practical strategies for improving appraisals. These include improving feedback and removing unnecessary complexity, clarifying the goals of appraisal systems, focusing appraisal on behaviors and outcomes under the employee's control and increasing the fairness of appraisal systems.

Research is needed on the effects of changing the ways performance appraisals are conducted in organizations.

Practical strategies for improving performance appraisal are outlined.

Better performance appraisals will benefit organizations and their members.

This paper refutes the growing claim that organizations are abandoning performance appraisal and illustrates practical strategies for improving performance appraisal.

The purpose of this article is to examine whether the incentivizing type of performance appraisal (typical of New Public Management) has indeed been superseded by a post-New Public Management (NPM), developmental type of performance appraisal in European Civil Services.

The literature review lead to a unidimensional, twofold typology: incentivizing (NPM) and developmental (post-NPM) performance appraisal. The empirical basis of the research is two surveys conducted among top civil servants in 18 European countries.

First, there are crucial discrepancies between performance appraisal systems in contemporary European central government administrations and current theorizing on performance appraisal. Contrary to our expectations developed on the basis of the latter, “developmental” and “incentivizing” do not seem to be two distinct types of performance appraisal; rather, they are two independent dimensions, defining altogether four different types of performance appraisal systems.

The authors results give orientation to policymakers and public service managers to engage in designing or applying performance appraisal systems, in particular by identifying assailable presumptions underlying many present-time reform trends.

Citizens and communities are direct stakeholders in the development of public service performance appraisal both as possible or actual employees of public service organizations and as recipients of public services.

The paper proposes a new fourfold typology of performance appraisal systems: incentivizing, developmental, symbolic and want-it-all.

Compares the traditional performance appraisal systems with Deming′s philosophy of operating a production system focused on quality for the consumer. W. Edwards Deming has long challenged the effectiveness of traditional performance appraisal systems used by American managers. He criticizes the traditional performance appraisal system of rewarding “win‐lose” results rather than supporting “win‐win” aims, thereby placing so much emphasis on judging and ranking people and using extrinsic motivational means. He recommends replacing the traditional performance systems that encourage win‐lose behaviour with systems that promote co‐operative and supportive behaviour. The Deming approach to performance appraisal involves a complete change of the traditional system to one that concentrates on managers being highly focused on quality and long‐term improvement. The successful implementations of Deming′s management approach in several American organizations were examined as available means of integrating performance appraisals into their quality system. The more successful companies have found remarkable improvement in consumer recognition, sales, market share, operating costs, customer satisfaction, employee morale, and of course quality. Such actions will not only help to strengthen these companies′ market position, but will help to improve the overall global competitiveness of American industry.

The Nature of Business Policy Business policy — or general management — is concerned with the following six major functions:

The present study aims to show the role of performance appraisal in the motivating and compensating of academic staff. The goal of the paper is achieved through comparing performance appraisal and compensation policies and systems in the University of Tartu. One of the aims is also to find out the level of satisfaction of the academic staff with the appraisal and compensation systems in two faculties of the University of Tartu.

Research was carried out on the academic staff at the faculty of Economics and Business Administration (hereafter FEBA) and the Faculty of Education (hereafter FE) at Tartu University. It is based on the analysis of quantitative and qualitative research methods. The author carried out document analysis and two original and anonymous questionnaires. In order to achieve this aim, 125 lecturers were questioned, from whom 52 percent returned their filled in questionnaires. In addition to that, qualitative data from five semi‐structured interviews with senior management and lecturers, incorporating individual interviews were analyzed.

Firstly, results showed that the performance appraisal and compensation system (pay‐for‐performance system) has guaranteed a highly motivated core of staff. Secondly, teaching loads and research activities of the academic staff have increased over the years. Faculties need to establish performance appraisal and compensation systems in order to show clearly defined causality between compensation and performance of academic staff. A good and well functioning performance appraisal system would help the educators to make their mark in the organizational setting of their faculty.

In addition to suggestions for improvement, limitations of the results will be addressed. The survey was carried out in two faculties at the University of Tartu. Unfortunately, the survey yielded only 65 usable responses, thus it could be claimed that the dataset is too small for making any conclusive generalizations. However, when taking into consideration that the survey was anonymous, the author believes that a 52 per cent response rate can be considered a very good result. Another limitation involves the dynamic nature of appraisal systems. Since, the appraisal procedures are still being developed, the systems described might now be out of date.

The present paper is valuable as it is the first one to examine the role of performance appraisal and compensation (pay‐for‐performance) systems in Estonian and Baltic Universities.

The purpose of this paper is to construct an instrument to assess employee‐perceived performance appraisal congruency and then to use the scale to predict employee attitudes about their performance appraisal systems.

The scale was developed using 28 subject‐matter experts and researcher knowledge of the extant literature. The scale was then completed by a sample of 135 individuals using internet administration.

Regression analyses showed that performance appraisal congruency predicted overall system satisfaction, perceived usefulness and fairness. Supplementary analyses of the performance appraisal congruency items were conducted so as to refine the original instrument for future research.

Limitations of the study include: the interviews conducted to develop the instrument were conducted in a single organization; the study used an internet sample that was made up of university alumni; all measures were self‐report; and single item measures were used as the criterion variables. The findings support the utility of the use of the P‐E fit model in performance management systems. Future research should assess outcomes that would be of interest to organizations, such as the relationships with performance system satisfaction and employee commitment and turnover.

If employees perceive that the performance appraisal system is congruent with their expectations, then positive outcomes should be expected.

While congruency has been linked to important outcomes such as job satisfaction, organizational commitment, turnover intention, and actual turnover, it has not been used within a performance appraisal framework.

A remarkable amount of theory‐based research is beginning to suggest that, even in organisations that pride themselves on having a quality orientation, the approach driving current policies and practices for human resource (HR) performance appraisal might be in fundamental conflict with essential requirements of total quality management (TQM). Seen in this light, this article aims to explore such (in)consistency between HRM theory and TQM precepts and assumptions.

Given that there is relatively little evidence regarding the nature of HR performance appraisal in quality‐driven organisations, this research used a combination of quantitative and qualitative investigation of performance appraisal and TQM assumptions.

The research highlights that while some of the quality management gurus, followed by other TQM scholars, advise organisations to relinquish and eliminate performance appraisal practices, this is not a unanimous view in both the literature and practice.

The research has the potential to aid researchers in comprehending the broad and complex mix of performance appraisal practices with those criteria underlying TQM. Therefore, the fundamental need is for more empirical research and analysis in order to test various theoretical assumptions about the impact of HR‐related practices on organisational performance in quality‐driven organisations.

The results of the research should enable practicing managers to determine which HR performance characteristics are more consistent with TQM initiatives. In particular, the research findings should also facilitate more valid diagnosis of TQM failures.

The paper highlights that the effectiveness of TQM can be enhanced by designing a performance management system that fits the culture and strategy of the organisation and also strongly supports a quality‐driven management strategy.

The performance evaluation process is a key step in any management system and constitutes the basis for continuous improvement. Resistance to change is considered as a critical factor in any change management project; so, development of employee performance appraisal systems like all of the change management projects has always faced many challenges. This study seeks to illustrate the two-year experience (2018–2020) and lessons learned by developing an employee performance appraisal system in the National Library and Archives of Iran (NLAI) as a cultural public sector organization.

This study was carried out by using soft operational research (OR) approaches, using a novel combination of two methods, soft system methodology (SSM) and importance performance analysis (IPA). For this purpose, at the beginning, with the help of the SSM approach, the challenges of implementation was identified, then, using the opinions and experiences of the system's stakeholders, improvement actions were defined and prioritized using the IPA method.

The research findings showed that “coaching development,” “optimizing the forced distribution rating system (FDRS)” and “customizing the system” are the most important improvement actions.

The research has bridged the gap between research and practice in the field of employee performance appraisal system in national libraries.