Performance Appraisal as a Strategic Intervention

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Journal Article
Asia Pacific Journal of Human Resources, 1988, 26 (2), pp. 23 - 34
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An increasing number of organisations are instituting formal appraisal systems for employees at all levels. This article reviews major reasons for this widespread move and points out the failure of most performance appraisal systems to form an integral part of an organisation's forward strategic plan. While many organisations are adopting strategic plans designed to produce widespread organisational restructuring and the reformulation of organisational functions, the institution of PA systems in these same organisations can create reward structures which reinforce the status quo. PA should be a proactive intervention addressing future issues, supporting rather than subverting corporate strategy. To achieve a supportive link between strategy and PA, we suggest a series of questions to guide the planning of a PA system so that it becomes a vital ingredient in moving the organisation toward a future vision. 1988 Australian Human Resources Institute (AHRI)
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