Recommendations for improvements in performance appraisal systems are given.
Introduction Evaluating employee performance is perhaps the most common managerial action.
In fact, managers evaluate the performance of employees every day. In fact, silence is often viewed as a very positive evaluation by employees. Some managers rely only on their daily comments, looks of approval or disapproval or silence as a means of informing employees about how they are performing. Other managers take the time to provide a formal evaluation of performance on a regular basis. There is strong evidence that employees in those organizations in which managers provide formal evaluations perform their jobs better than do employees in those in which managers rely solely on daily comments.