An assessment of manager/subordinate perceptions of performance appraisal effectiveness

This study postulates that performance appraisal will be effective to the extent that managers and subordinates have a shared perception of its purpose and function and the degree to which it meets the needs of both groups. A two part research project was conducted to: 1) identify manager/subordinate perceptions of the purposes served by the formal performance appraisal process; 2) determine the extent to which these purposes are being satisfied in organizational practice; and 3) assess if managers and subordinates have a shared perception of the effectiveness of the appraisal process. The sample for the study included 36 managers and 143 subordinates from a division of a large Midwest service organization. The results were mixed with regard to the appraisal system effectively accomplishing its diverse goals. However, in general, there was support for the notion that both managers and subordinates find the appraisal process to be a worthwhile organizational practice. Approximately 70% of the respondents indicated that they would participate in the appraisal program whether they were required to do so or not.