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It is an important tool and assists with the execution of other human resource activities. Specifically performance appraisal can provide information which assists with promotion and salary decisions, allows plans to be made to correct work place behavior, reinforces good work place practices and provides a forum to review an employee’s career aspirations (Dessler et al 1999, p.452). Grote 2000 found that best practice organizations use the appraisal process to ‘establish and reinforce the importance of core competencies’. Some organizations have also used the appraisal process to implement performance related pay (PRP), where salary increases are allocated to reward high performing employees (Lewis 1998)...
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