Editing Performance appraisal (section)

=== Use of Performance Appraisal Results ===

Performance appraisals (PAs) have wide-ranging uses in organizations across sectors and are intended to serve various purposes including:

'''''Performance improvement'''''

Employee performance improvement is considered a central purpose of PAs that contributes to enhancing organizational effectiveness.<ref>{{cite journal |last1=DeNisi, A. S., & Murphy, K. R. |title=Performance appraisal and performance management: 100 years of progress? |journal=Journal of Applied Psychology |date=2017 |volume=102 |issue=3 |pages=102(3), 421–433|doi=10.1037/apl0000085 |pmid=28125265 }}</ref> Due to greater demand for transparency, accountability, and effective public service delivery.<ref name="Performance appraisal in public sec">{{cite journal |last1=Kim, S. |title=Performance appraisal in public sector: Motivating public employees through PAs |journal=International Journal of Public Administration |date=2020 |pages=43(2), 91–105}}</ref> PAs in public sector organizations help identify strengths and weaknesses, and development opportunities that algin employees' efforts with organizational and public service goals, while enabling public sector employees to adjust their performance in order to foster a more effective government workforce.<ref name="Performance management in public se">{{cite journal |last1=Christensen, T., & Laegreid, P. |title=Performance management in public sector organizations: Complexity and hybridization |journal=Public Organization Review |date=2020 |pages=20(1), 1–15}}</ref>

'''''Informing employment decisions'''''

PAs are used to inform employment decisions such as promotion, termination, and transfer of employees.<ref>{{cite journal |doi=10.1080/09585192.2011.559100 |title=Performance management effectiveness: Lessons from world-leading firms |date=2011 |last1=Biron |first1=Michal |last2=Farndale |first2=Elaine |last3=Paauwe |first3=Jaap |journal=The International Journal of Human Resource Management |volume=22 |issue=6 |pages=1294–1311 |url=https://scholarsphere.psu.edu/resources/6d887837-d41d-4ea5-b354-4d0109f78358 }}</ref> Transparent and objective PAs can help ensure fairness in these employment decisions as well as help identify high-potential employees from groups that may be more traditionally [[social exclusion|excluded]], thus, contributing to career progression and, at the same time, increasing diversity in leadership positions.<ref>{{cite journal |doi=10.1016/j.bushor.2011.06.001 |title=Why we hate performance management—And why we should love it |date=2011 |last1=Aguinis |first1=Herman |last2=Joo |first2=Harry |last3=Gottfredson |first3=Ryan K. |journal=Business Horizons |volume=54 |issue=6 |pages=503–507 }}</ref>

From a [[labor union]] perspective, PAs should be embedded within fair and [[culturally sensitive]] appraisal systems and should not reinforce managerial bias or justify unfair terminations or promotions, particularly for employees of indigenous background, women, and ethnic minorities that are often at greater risk of being unfairly evaluated due to [[unconscious bias]] or inequitable standards.<ref>{{cite journal |last1=García-Chas, R., Neira-Fontela, E., & Varela-Neira, C. |title=High-performance work systems and job satisfaction: A mediating role of trust and labour unions |journal=Human Resource Management Journal |date=2016 |pages=26(2), 238–254}}</ref>

The use of multisource feedback – incorporating evaluations from peers, subordinates, and customers to provide a holistic view – over traditional supervisory ratings may assist to improve rating accuracy by reducing leniency bias and centrality bias<ref>{{cite journal |last1=Barbieri, D., Gorbatai, A., & Kazman, R. |title=The Performance of Performance Appraisal Systems: A Theoretical Framework for Public Organizations |journal=Review of Public Personnel Administration |date=2021}}</ref> where raters may give overly positive evaluations or avoid extreme ratings, respectively.

'''''Organizational research, tools and practices'''''

Research shows that effective PAs are reliable indicators of employee competencies and future job performance.<ref>{{cite journal |last1=Wang, H., Hom, P. W., & Allen, D. G. |title=Coping with turnover: New directions for research on employee retention |journal=Academy of Management Annals |date=2021 |pages=13(1), 69–103}}</ref> In public sector organizations that serve diverse populations, inclusive PAs can contribute to better hiring practices and employee development programs.<ref name="Public and private management: What">{{cite journal |last1=Boyne, G. A. |title=Public and private management: What's the difference? |journal=Journal of Management Studies |date=2010 |pages=39(1), 97–122}}</ref> [[Labor unions]] emphasize that these systems should reflect collective efforts rather than focusing solely on individual accomplishments, as collaboration is key in creating an inclusive public workforce.<ref>{{cite journal |last1=Benson, J. |title=Performance management systems and employee relations: A critical perspective |journal=Labour Studies Journal |pages=46(2), 155–173}}</ref>

'''''Communication'''''

PAs are used as mechanisms for feedback, to clarify job expectations and organizational goals,<ref name="Performance appraisal in public sec"/> and to prevent misunderstandings that may arise, including those stemming from cultural differences.<ref name="Performance management in public se"/> Transparent appraisal systems also reduce the risk of surprise negative evaluations, a concern especially pertinent for [[social exclusion|socially excluded]] groups that may already face [[systemic bias]] in the workplace.<ref>{{cite journal |last1=Pyman, A., Holland, P. J., Teicher, J., & Walpole, K |title=Industrial relations climate, employee voice, and managerial attitudes to unions: An Australian study |journal=British Journal of Industrial Relations |date=2010 |pages=48(2), 258–282}}</ref>

Research has found that face-to-face discussions and continuous feedback help improve the performance appraisal process by enhancing clarity and mutual understanding.<ref>{{cite journal |last1=Barbieri, D., Gorbatai, A., & Kazman, R. |title=The Performance of Performance Appraisal Systems: A Theoretical Framework for Public Organizations |journal=Review of Public Personnel Administration}}</ref>

'''''Development and training'''''

PAs can assist in identifying training needs and setting professional development goals fostering both individual growth and a more skilled workforce at an organizational level.<ref>{{cite book |last1=Perry, J. L. |title=Managing human behavior in public and nonprofit organizations |date=2018 |publisher=CQ Press}}</ref>

Cognitive biases such as the [[anchoring effect]] and [[halo effect]] can impact the accuracy of appraisals used to identify training and professional development needs by relying too heavily on initial information (anchor) when making judgments; or a rater's overall positive impression of an individual, both of which can influence the assessment of performance, leading to biased judgments that influence evaluations.<ref>{{cite journal |last1=Belle, N., Cantarelli, P., & Belardinelli, P. |title=Cognitive Biases in Performance Appraisal: Experimental Evidence on Anchoring and Halo Effects With Public Sector Managers and Employees |journal=Review of Public Personnel Administration |pages=37(3), 275–294}}</ref>

'''''Documenting performance'''''

PAs serve the purpose of documenting appraisal processes and results – essential in public sector organizations, where accountability to citizens and legal regulations is required. Proper documentation ensures performance is recorded transparently, safeguarding all parties in case of disputes around wrongful termination or discrimination.<ref>{{cite journal |last1=Choi, S., Hong, S., & Lee, H. |title=The role of performance appraisals in managing employment relations |journal=Employee Relations |date=2020 |pages=42(3), 667–687}}</ref>

[[Labor unions]] advocate that such documentation should be accessible to employees and their representatives, ensuring that vulnerable employees are protected from biased evaluations.<ref>{{cite journal |last1=García-Chas, R., Neira-Fontela, E., & Varela-Neira, C. (2016). High-performance work systems and job satisfaction: A mediating role of trust and labour unions. Human Resource Management Journal, 26(2), 238-254. |title=High-performance work systems and job satisfaction: A mediating role of trust and labour unions |journal=Human Resource Management Journal |pages=26(2), 238–254}}</ref>

'''''[[Reward system]]s'''''

PAs are often used to determine salary levels and rewards placing a greater emphasis on the need for transparency in how compensation decisions are made.<ref>{{cite journal |last1=Budd, J. W., Gollan, P. J., & Wilkinson, A. |title=New approaches to employee voice and participation in organizations |journal=Human Relations |date=2010 |pages=63(3), 303–310}}</ref>

Research has found that clear communication of performance metrics, management support, and fair reward distribution are essential for successful reward implementation.<ref>{{cite journal |last1=Audenaert, M., Vanderstraeten, A., & Buyens, D. |title=The Role of Feedback Quality and Organizational Cynicism for Affective Commitment Through Leader–Member Exchange |journal=Review of Public Personnel Administration |date=2021 |pages=41(3), 593–615}}</ref>

'''''Job evaluation and selection'''''

Performance appraisals also assist in formulating job criteria and selecting individuals suited for specific tasks. By identifying key competencies, PAs help ensure that recruitment and selection processes are inclusive, enabling public sector organizations to meet the needs of diverse communities.<ref name="Public and private management: What"/>

'''''[[Motivation]]'''''

PAs serve as critical tools for motivating employees. In the public sector, where intrinsic motivators such as [[public service motivation]] often drive performance, PAs can enhance [[motivation]] by recognizing the contributions of employees and providing them with growth opportunities.<ref name="Performance appraisal in public sec"/> Public sector unions emphasize the importance of non-monetary rewards, such as career development or increased responsibility, which can be particularly meaningful for employees from groups that more traditionally suffer from [[social exclusion]], as these provide pathways to leadership and broader representation.<ref>{{cite journal |last1=Pyman, A., Holland, P. J., Teicher, J., & Walpole, K. |title=Industrial relations climate, employee voice, and managerial attitudes to unions: An Australian study |journal=British Journal of Industrial Relations |date=2010 |pages=48(2), 258–282}}</ref>