Performance appraisals provide one basis for deciding who should be promoted, terminated, given a raise, and so forth.
They are probably not the only basis for such decisions.
The author as such mentions that in all firms, but even more so, in small size organizations, a relationship exists between the interviewed employee and the interviewer and that the nature of the relationship would impact the evaluation.
Additionally, the outcome of the appraisal could also be impacted by the quantity of the work and the levels of productivity, not only the quality of the work.
And during the 1980s decade, the performance management systems were underdeveloped and performing at low standards.
In time however, they gained more applicability and turned into omnipresent systems within the business community.Goel then argues that "the history of performance appraisal is as old as human civilization" and that the first signs of appraisal were obvious in the Wei dynasty in China, between 221 and 265 Anno Domini.But the author does agree that the basis of modern day appraisal were set during the World Wars.Overall, the performance appraisal system is not useful and applicable within the modern day society because it assesses the working features, but namely because it allows the firm to use the assessed working features to create positive impacts within the organization.Traditionally, the performance appraisal systems were applied in order to support administrative decisions.At the level of administrative decisions, performance appraisal systems play the role of supporting managers in the promotion of the staff members, in the making of the wage decisions and so on.Nevertheless, it is important that performance appraisal be coupled with other decision making tools in order to ensure the accuracy of the decision. Murphy and Jeanette Cleveland (1995) explain: "The most obvious purpose of a performance appraisal system is as a decision aid.At that stage, emphasis was placed on the evaluation of the hourly work of the employees and no emphasis was placed on the evaluation of the managers.An important role in appraisals was played by the trait and personality of the subalterns and the appraisals were as such highly subjective (Goel, 2008).The first two categories of sources are characterized by the fact that they are peer reviewed and they as such integrate reliable information.A limitation which is however observed is constituted by the fact that the specialized journals and the books could deal with issues which are not up-to-date.