According to Dessler et al (1999, p.452), “Performance appraisal may be defined as a process that identifies, evaluates and develops employee performance to meet employee and organisational goals”.
Performance appraisal is an important function usually implemented by the human resource department within organizations. It is an important tool and assists with the execution of other human resource activities. Specifically performance appraisal can provide information which assists with promotion and salary decisions, allows plans to be made to correct work place behavior, reinforces good work place practices and provides a forum to review an employee’s career aspirations (Dessler et al 1999, p.452). Grote 2000 found that best practice organizations use the appraisal process to ‘establish and reinforce the importance of core competencies’. Some organizations have also used the appraisal process to implement performance related pay (PRP), where salary increases are allocated to reward high performing employees (Lewis 1998).
The appraisal interview can be a forum that allows the organisation to communicate core competencies that support the organisation’s current direction and strategies (Anonymous, HR Focus 2000). The interview can also assist building loyalty and trust between the appraiser and the appraised, employees can feel