Effectiveness of Performance Appraisal: An Integrated Framework

24 Pages Posted: 19 Oct 2015

See all articles by Muhammad Zahid Iqbal

Muhammad Zahid Iqbal

Comsats University Islamabad

Saeed Akbar

University of Liverpool - Accounting and Finance Division

Pawan Budhwar

Aston University

Date Written: October 2015

Abstract

Based on a robust analysis of the existing literature on performance appraisal (PA), this paper makes a case for an integrated framework of effectiveness of performance appraisal (EPA). To achieve this, it draws on the expanded view of measurement criteria of EPA, i.e. purposefulness, fairness and accuracy, and identifies their relationships with ratee reactions. The analysis reveals that the expanded view of purposefulness includes more theoretical anchors for the purposes of PA and relates to various aspects of human resource functions, e.g. feedback and goal orientation. The expansion in the PA fairness criterion suggests certain newly established nomological networks, which were ignored in the past, e.g. the relationship between distributive fairness and organization‐referenced outcomes. Further, refinements in PA accuracy reveal a more comprehensive categorization of rating biases. Coherence among measurement criteria has resulted in a ratee reactions‐based integrated framework, which should be useful for both researchers and practitioners.

Suggested Citation

Iqbal, Muhammad Zahid and Akbar, Saeed and Budhwar, Pawan, Effectiveness of Performance Appraisal: An Integrated Framework (October 2015). International Journal of Management Reviews, Vol. 17, Issue 4, pp. 510-533, 2015, Available at SSRN: https://ssrn.com/abstract=2675657 or http://dx.doi.org/10.1111/ijmr.12050

Muhammad Zahid Iqbal (Contact Author)

Comsats University Islamabad

Park Road
Chak Shahzad
Islamabad, North-West Frontier Province 44000
Pakistan

Saeed Akbar

University of Liverpool - Accounting and Finance Division ( email )

United Kingdom

Pawan Budhwar

Aston University ( email )

Aston Triangle
Birmingham, B4 7ET
United Kingdom

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