Literature Review On Performance Management And Performance Appraisal System

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Performance management (PM) is a goal-oriented process that focuses in the placement of organizational processes to maximize the productivity of employees to improve organisational performance. It involves measuring the value of the workforce and development of a plan to improve performance. This paper reviews the literature on performance management and performance appraisal system to see if it will improve the performance of the Cavendish Hotel.

Firstly, we examine the effectiveness of performance appraisal (PA) system and its purpose. A review of the link between performance management and reward, personal development planning, and the management of poor performance through appraisal will follow. We will also review changes that organisations are making to their appraisal systems a more rounded performance management approach. The focus of the paper then turns to reviewing HPWS and integrating with different PM practices through the AMO theory.

An employee’s satisfaction with the appraisal process is determined by a number of factors, including supervisory support, positively evaluating aspects of an employee’s performance, and establishment of trust (Dorfman et al., 1986; Ilgen, 1993; Latham and Saari, 1979; Metcalfe, 1984; Meyer et al., 1965; Russell and Goode, 1988). Appraisal offers an opportunity to focus on objectives and goals, to identify and correct existing problems while encouraging better future

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