It’s time to bring performance appraisal into the twenty-first century

Purpose – Examines the weaknesses of many current performance appraisals and shows how to improve them. Design/methodology/approach – Draws on examples from companies such as Cisco, Google and Infosys. Findings – Shows that there are two main sets of reasons for the failure of performance management – system related and people related. System-related problems crop up while defining the performance goals or designing the appraisal system. People-related problems usually arise while discussing the results of appraisals. Practical implications – Investigates the importance of the three key elements of performance appraisal – the appraiser, the appraisal period and the rating method. Social implications – Shows how important performance appraisal can be in the modern business world where skilled and talented workers are at a premium. Originality/value – Argues that present-day organizations need to develop an ongoing process to manage employee performance, make sure the right things are being measured, and that the feedback is carried out as constructively as possible.