What Do Performance Appraisals Do?

38 Pages Posted: 11 Jul 2016

See all articles by Peter Cappelli

Peter Cappelli

University of Pennsylvania Wharton School - Center for Human Resources; National Bureau of Economic Research (NBER); University of Pennsylvania - Management Department

Martin J. Conyon

Bentley University; Wharton School, Center for Human Resources

Date Written: July 2016

Abstract

This paper investigates employee performance appraisals using data from a single US firm between 2001 and 2007. We find that performance appraisals are both informative and drive important components of the employment contract. We find that employee appraisal scores vary considerably both between and within individuals over time. In addition, we show that employee performance appraisal scores are related to a range of important employment outcomes, including merit pay and bonuses, promotions, demotions and dismissals, as well as employee quits.

Suggested Citation

Cappelli, Peter and Conyon, Martin J., What Do Performance Appraisals Do? (July 2016). NBER Working Paper No. w22400, Available at SSRN: https://ssrn.com/abstract=2807730

Peter Cappelli (Contact Author)

University of Pennsylvania Wharton School - Center for Human Resources ( email )

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HOME PAGE: http://www.wharton.upenn.edu/faculty/cappelli.html

National Bureau of Economic Research (NBER)

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University of Pennsylvania - Management Department ( email )

The Wharton School
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United States

Martin J. Conyon

Bentley University ( email )

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Waltham, MA 02145
United States

Wharton School, Center for Human Resources ( email )

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United States

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