Abstract

This article presents a longitudinal study of employee reactions to two types of appraisal systems to aid managers in the selection of appraisal techniques. In recent years a great deal of management attention has been directed towards the development of valid and equitable performance appraisal systems. The momentum for the development of these systems has come from companies vitally concerned with finding new ways to enhance the performance of their employees. However, performance appraisal programs have at least two audiences, they should provide management with information on wage and salary decisions, promotions and dismissals, and training and development needs, and provide employees with feedback as to how well they are doing their job, specifying their strengths and weaknesses. For any appraisal system to be effective, it must be viewed as equitable and worthwhile by both the organization and the employees. The acceptance and support of employees is a critical issue when management is deciding on which appraisal system to use.