The good, the bad and the ineffective: An appraisal of performance appraisals
DOI:
https://doi.org/10.33736/jcshd.8481.2025Keywords:
performance review, appraisals, human resource, talent management, human capitalAbstract
This paper is a review of recent literature and industrial examples of performance appraisal practices to explore effective strategies and persistent challenges that are hampering effective implementation of the process. The findings indicated a shift among companies with best practices, from traditional appraisal models to a more dynamic approach that prioritises continuous feedback, employee engagement, and alignment with strategic goals. To illustrate and exemplify these developments, the innovative systems of three global companies were highlighted for their impact on performance and retention. The study also identifies enduring issues that are disabling effective performance appraisals, such as bias, transparency, and resistance to change. In addition, forced or relative ranking was examined which revealed its potential for higher competitiveness and top performer identification, while negatively impacting the workforce through decreased collaboration and affected employee morale. To address these challenges, based on the review conducted, this study proposes strengthening alignment of goal setting and performance monitoring with organisational goals, improving fairness and transparency, incorporating continuous feedback, leveraging technology, and enhancing supervisor training. By leveraging on best practices and addressing the identified gaps, organisations could be on the road to strengthened organisational performance and enhanced employee satisfaction.
References
Adobe. (2024). How Adobe continues to inspire great performance and support career growth. https://www.adobe.com/check-in.html
Al-Obaidi, R. K. N., Idan, A. K., & Alwan, A. N. M. (2022). Evaluating the level of transparency and its relationship to performance evaluation in a sample of Iraqi banks listed on the Iraq stock exchange. Webology, 19(1), 3657–3683. https://doi.org/10.14704/WEB/V19I1/WEB19241
Barbieri, M., Micacchi, L., Vidè, F., & Valotti, G. (2023). The performance of performance appraisal systems: A theoretical framework for public organizations. Review of Public Personnel Administration, 43(1), 104–129. https://doi.org/10.1177/0734371X211043560
Baumeister, R. F., & Leary, M. R. (1997). Writing narrative literature reviews. Review of General Psychology, 1(3), 311–320. https://doi.org/10.1037/1089-2680.1.3.311
Boston Consulting Group. (2023). Delivering top-notch people performance. https://www.bcg.com/publications/2023/delivering-top-notch-people-performance
Burkus, D. (2016). How Adobe scrapped its performance review system and why it worked. Forbes. https://www.forbes.com/sites/davidburkus/2016/06/01/how-adobe-scrapped-its-performance-review-system-and-why-it-worked/
Cai, Z. (2024). The impact of performance appraisal methods on enterprises in the Internet era. Finance & Economics, 1(5). https://doi.org/10.61173/sbk5vm39
Castro-Pires, H. (2024). Agency in hierarchies: Middle managers and performance evaluations. Journal of the European Economic Association, 22(5), 2414–2465. https://doi.org/10.1093/jeea/jvae003
Celen, S. (2021). OKR. Master the performance framework that Google perfected.: Create & achieve your top startup and personal goals using the leading innovation management system. Independently published.
Crews, D. (2021). Reinventing performance management. Archives of Business Research, 9(6), 1–12. https://doi.org/10.14738/abr.96.10267
Dangol, P. (2021). Role of performance appraisal system and its impact on employees’ motivation. Quantitative Economics and Management Studies, 2(1), 13–26. https://doi.org/10.35877/454RI.qems119
Dattner. (2020). Government at a glance: Latin America and the Caribbean 2020. Organisation for Economic Co-operation and Development. https://doi.org/10.1787/13130fbb-en
Denning, S. (2018). The Netflix pressure-cooker: A culture that drives performance. https://www.forbes.com/sites/stephaniedenning/2018/10/26/the-netflix-pressure-cooker-a-culture-that-drives-performance/
Emmanuel E., N., & John O., U. (2021). Developing an effective employee performance appraisal system. International Journal of Computer Applications Technology and Research, 10(11), 237–247.
Etalong, T. A., Chikeleze, F. O., & Chukwunyelum, A. O. (2022). The obstacles to using performance appraisal and reward systems as tools for improving employee performance. International Journal of Business and Management Review, 10(5), 86–93.
Fernandes, B. C. L., & Gomes, J. V. (2023). OKR methodology: Case study in Sebrae Meier. International Journal of Strategic Decision Sciences, 14(1), 1–11. https://doi.org/10.4018/IJSDS.318341
Field, E., Hancock, B., & Smallets, S. (2023). How to get the most from end-of-year reviews. McKinsey. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-organization-blog/how-to-get-the-most-from-end-of-year-reviews
Francis, B. R., Ahmad, R. B., & Abdullah, S. M. B. (2021). A bibliometric analysis on performance appraisal. International Journal of Academic Research in Business and Social Sciences, 11(9), 1797–1818. https://doi.org/10.6007/IJARBSS/v11-i9/11253
Gartner. (2020). Redefine performance management to drive impact. https://www.gartner.com/smarterwithgartner/3-steps-performance-management-delivers
Gosavi, & Wakchaure. (2024). Performance appraisal methods and job satisfaction in public and private sector banks: A comprehensive analysis. International Journal for Multidisciplinary Research, 6(3), 21890. https://doi.org/10.36948/ijfmr.2024.v06i03.21890
Hameed, R. M., Bashir, F., Zahid, N., & Raja, A. R. M. (2023). Investigating how the perception of appraisal politics and bias influence job satisfaction and organizational citizenship behavior, with trust playing a moderating role among employees. Bulletin of Business and Economics (BBE), 12(4), 189–204. https://doi.org/10.61506/01.00103
Hao, J.-Y. P. (2021). Subjective performance evaluation and forward-looking implications: The role of supervisor incentives. Journal of Management Accounting Research, 33(2), 109–127. https://doi.org/10.2308/JMAR-19-023
Hinds, R., Sutton, R., & Rao, H. (2014). Adobe: Building momentum by abandoning annual performance reviews for “Check-Ins”. Stanford Graduate School of Business. https://www.gsb.stanford.edu/faculty-research/case-studies/adobe-building-momentum-abandoning-annual-performance-reviews-check
Hoerger, M. (2020). Measure what matters: How Google, Bono, and the Gates Foundation rock the world with OKRs by J. Doerr. Journal of Psychosocial Oncology, 38(5), 645–647. https://doi.org/10.1080/07347332.2020.1749212
Hristov, I., Camilli, R., & Mechelli, A. (2022). Cognitive biases in implementing a performance management system: Behavioral strategy for supporting managers’ decision-making processes. Management Research Review, 45(9), 1110–1136. https://doi.org/10.1108/MRR-11-2021-0777
Kaur, G. (2021). A systematic review of the impact of performance appraisal systems and competency management framework on the performance of employees in the telecom sector. Psychology and Education Journal, 58(1), 2515–2531. https://doi.org/10.17762/pae.v58i1.1127
Kim, J. (2024). Raise the bar or leave it: Netflix’s high-stakes talent strategy for high-performance teams. https://www.paraform.com/blog/netflix-high-stakes-talent-strategy
Kostovyat, H., & Rogov, V. (2023). Performance appraisal methods. Open Science Of Ukraine, 2023(3). https://doi.org/10.59948/osou3.2023.28
Lameque, I. D. C., Velez, M. J. P., & Botelho, C. M. D. A. (2023). Purposes of performance appraisal: A systematic review and agenda for future research. International Journal of Professional Business Review, 8(7), e02274. https://doi.org/10.26668/businessreview/2023.v8i7.2274
Lasa, A., Pedroni, A., Komm, A., & Lvallee, S. (2024). In the spotlight: Performance management that puts people first. McKinsey. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/in-the-spotlight-performance-management-that-puts-people-first
Li, Y., He, W., Yang, L., & Zheng, K. (2022). A historical review of performance appraisal of public hospitals in China from the perspective of historical institutionalism. Frontiers in Public Health, 10, 1009780. https://doi.org/10.3389/fpubh.2022.1009780
Mansor, F., Hasbullah, Y., Kassim, A., & Abu, N. (2021). Investigating performance appraisal bias among teachers. Proceedings of the Malaysian Technical Universities Conference on Engineering and Technology (MUCET) 2021 (pp. 274-275). Universiti Teknikal Malaysia Melaka.
McCord, P. (2014). How Netflix reinvented HR. Harvard Business Review. https://hbr.org/2014/01/how-netflix-reinvented-hr
Miller, B. (2022). How we inspire great performance at Adobe. https://blog.adobe.com/en/publish/2022/05/09/how-we-inspire-great-performance-at-adobe
Morris, D. (2014). Lessons learned with check-in. https://blog.adobe.com/en/publish/2014/03/10/lessons-learned-with-check-in
Nagtegaal, R., Tummers, L., Noordegraaf, M., & Bekkers, V. (2020). Designing to debias: Measuring and reducing public managers’ anchoring bias. Public Administration Review, 80(4), 565–576. https://doi.org/10.1111/puar.13211
Na-Nan, K., Kanthong, S., Joungtrakul, J., & Smith, I. D. (2020). Mediating effects of job satisfaction and organizational commitment between problems with performance appraisal and organizational citizenship behavior. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 64. https://doi.org/10.3390/joitmc6030064
Netflix. (2024). Netflix culture—The best work of our lives. https://jobs.netflix.com/culture
Norman, K., Pearson, L., & Knight, K. (2023). How to undertake annual appraisals and ongoing performance reviews. Nursing Management, 30(2), 28–33. https://doi.org/10.7748/nm.2022.e2065
Ogbodo, I. F., Onye-Ndimele, M. O., Utochukwu, O. E., & Nnanyelum, O. C. N. (2023). Performance appraisal in the industry (a case study of Apex Printing Company Limited). Journal of Recent Activities in Production, 8(3), 1–10. https://doi.org/10.46610/JoRAP.2023.v08i03.001
Parry, E. (2024). A study on performance appraisal system in Axis Bank. International Journal of Progressive Research in Engineering Management and Science, 4(4), 73–79. https://www.doi.org/10.58257/IJPREMS33102
Roethlisberger, F. J., Thompson, K., Dickson, W. J., & Western Electric Company. (2003). Management and the worker. Routledge.
RR Fera Pratiwi, Adhitya Pranajati, Desi Nursanti, Fani Pangabdian, Inggar Bagus Wibisono, Tresya Lien Matakupan, & Mira Veranita. (2024). Development, training, performance assessment and employee achievement (a literature review). EKONOMIKA45: Jurnal Ilmiah Manajemen, Ekonomi Bisnis, Kewirausahaan, 11(2), 490–505. https://doi.org/10.30640/ekonomika45.v11i2.2550
Rubin, E. V., & Edwards, A. (2020). The performance of performance appraisal systems: Understanding the linkage between appraisal structure and appraisal discrimination complaints. The International Journal of Human Resource Management, 31(15), 1938–1957. https://doi.org/10.1080/09585192.2018.1424015
Sadiyawati., M., & Hasanati, N. (2024). Effectiveness of performance appraisal system in employee development: A systematic review. International Journal of Research and Innovation in Social Science, VIII(VII), 3267–3273. https://dx.doi.org/10.47772/IJRISS.2024.807248
Schrøder-Hansen, K., & Hansen, A. (2023). Performance management trends–reflections on the redesigns big companies have been doing lately. International Journal of Productivity and Performance Management, 72(5), 1201–1220. https://doi.org/10.1108/IJPPM-07-2021-0391
Sekar, N. (2024). Netflix’s high-performance culture. https://medium.com/@nareshnavinash/netflixs-high-performance-culture-bf70229a76d4
Shobrun, S., Anisa, G., Suakanto, S., & Kusumasari, T. F. (2023). Prototyping model for self-appraisal employee performance application development in cooperative. Sinkron, 8(4). https://doi.org/10.33395/sinkron.v8i4.12865
Singh, J., Steele, K., & Singh, L. (2021). Combining the best of online and face-to-face learning: Hybrid and blended learning approach for COVID-19, post vaccine, & post-pandemic world. Journal of Educational Technology Systems, 50(2), 140–171. https://doi.org/10.1177/00472395211047865
Singh, S., & Pandey, P. (2023). The impact of effective performance appraisal on employee productivity. International Journal for Multidisciplinary Research, 5(4), 2934. https://doi.org/10.36948/ijfmr.2023.v05i04.2934
Sinha, V. (2024). The blind HR: Why do people leave managers not companies? A case of inconsistency in performance appraisal and performance outcome. Emerald Emerging Markets Case Studies, 14(4), 1–32. https://doi.org/10.1108/EEMCS-11-2023-0436
Su, K. (2024). An analysis of the application of performance appraisal in enterprise human resource management. Transactions on Economics, Business and Management Research, 8, 8–13. https://doi.org/10.62051/y8tv4175
Supiati, S., Paerah, A., Yoga, T., & Wulandari, S. H. E. (2024). A bibliometric analysis of the use of technology in employee performance evaluation: Trends and implications. West Science Social and Humanities Studies, 2(05), 759–768. https://doi.org/10.58812/wsshs.v2i05.877
Swetha, K., & Madhiyarsi, S. (2023). A study on performance appraisal of it employees. International Journal of Research Publication and Reviews, 4(9), 282–285. https://doi.org/10.55248/gengpi.4.923.52402
Talent Management Institute. (2024). How Netflix builds а dominant workforce through its talent management strategies. https://www.tmi.org/blogs/how-netflix-builds-a-dominant-workforce-through-its-talent-management-strategies
Tarigan, A., Gustomo, A., & Ros Bangun, Y. (2023). Enhancing fairness in performance appraisals: A conceptual framework through a systematic literature review. Journal of Advances in Humanities Research, 2(3), 202–228. https://doi.org/10.56868/jadhur.v2i3.176
Thomas, M., Maheswari, G. S., & Kavitha, M. (2024). Role of performance appraisal on employee performance. Educational Administration: Theory and Practice, 30(5), 10076–10079. https://doi.org/10.53555/kuey.v30i5.4338
Ullah, Z., Ahmad, N., Scholz, M., Ahmed, B., Ahmad, I., & Usman, M. (2021). Perceived accuracy of electronic performance appraisal systems: The case of a non-for-profit organization from an emerging economy. Sustainability, 13(4), 2109. https://doi.org/10.3390/su13042109
Wigert, B. (2024). 2% of CHROs think their performance management system works. Gallup. https://www.gallup.com/workplace/644717/chros-think-performance-management-system-works.aspx
Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). Sage Publications.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 UNIMAS Publisher

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
4) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
5) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.