In this chapter we will examine (a) what researchers and managers in R&D organizations do, and (b) the way we can tell how well they do it. We will also discuss the need for focusing less on "appraisal" (evaluation, judgment) and more on employee contribution to the organization.
Accepted wisdom would suggest that for an organization to function efficiently and effectively, the employees must work well toward meeting organizational goals and objectives. From a manager's point of view, it would seem prudent to reward those employees whose performance contributes to organizational success. Logically, performance appraisal systems need to be designed to motivate employees to improve performance and thus contribute to organizational productivity, effectiveness, and excellence.
In practice, there are many problems. Few management activities have challenged and intrigued executives as much as performance appraisal has. To some, appraisal suggests supervisors sitting in judgment as "Roman emperors." To others, performance appraisal is thought of as a method of manipulating employees and intruding into their lives.
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