Reasons for introducing Performance Appraisal

First let us consider why performance appraisal was originally conceived:

• Performance Appraisal was useful for evaluating the success of training and development initiatives not based on opinion but results
• Performance Appraisal feedback informed the employee how the organisation viewed their performance
• Performance Appraisal could justify reward decisions, including merit increases, promotions, and other rewards
• Performance Appraisal could produce evidence and/or opportunity for career progression
• Performance Appraisal could ascertain training and development requirements
• Performance Appraisal could evaluate the relative individual (or team) contributions in achieving the organisation goals
• Performance Appraisal generated information upon which the organisation could consider its strategies, plans and budgets
• Performance Appraisal generated evidence to evaluate the effectiveness of selection and placement decisions

Of course these "justifications" did not exclude use of other processes therefore it was largely because irregular formal performance appraisal did not provide the dynamics that other processes did that performance appraisal lost its way a little. But there were other reasons why the aspirations of performance appraisal became tarnished:

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