Article: Research and practice in performance appraisal: evaluating employee performance in America's largest companies.

Introduction

Many academics and practicing managers regard performance appraisal as one of the most valuable human resource tools. It is a vital component in recruiting and hiring employees, where it is used to validate selection tests, and in staffing, where transfer, layoff, termination, or promotion decisions are made on the basis of appraisal results. In compensation administration, performance appraisal forms the basis for the administration of merit pay systems. Most important, performance appraisal can be used as a motivational tool for communicating performance expectations to employees and providing them with feedback. Finally, performance appraisal ...

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