AN EMPIRICAL RELATIONSHIP BETWEEN PERFORMANCE APPRAISAL AND PROMOTION
Abstract
The key idea of performance appraisal is to establish a reward system that optimizes the efforts and contribution of leaders and employees to the general performance of their organisation. As noted by Cleveland, Murphy, and Williams (1989), the propagation of performance appraisal systems is motivated by a broad range of concerns, including promotions, terminations, salary administration, and the development of adequate competence and expertise. Performance appraisal may be useful both in the cross-sectional dimension (for comparison between individuals) and for the time dimension (for comparison of individual performance over time).