The contemporary business environment in the United States and the business environment that will soon begin to emerge as the North American Free Trade Agreement (NAFTA) begins to be implemented demand that American business firms, if they are to survive, improve the level of their performance. The key to improving organizational performance is the performance of the firm's employees as both individuals and as team workers. This study investigated one factor that affects the level of employee performance the organizational performance appraisal process.
Statement of the Problem Performance evaluation is among the most important of all organizational human resource activities Performance evaluations "represent critical decisions that are key influences on a variety of subsequent human resources actions and outcomes."
Personnel turnover is one factor that leads to sub standard performance, and it is one of the most costly problems that afflict organizations. The costs of personnel turnover are not limited to those incurred directly in relation to those employees leaving the organization, such as the loss of productive workers, lost training costs, the necessity to train replacements, and so forth. Personnel turnover also exacts organizational costs through the effects it has on those employees who remain with the organization. Ineffective performance evaluation is a contributing factor to high levels of personnel turnover.
Performance appraisals build a history of an individual's life within an organization. This history, in most instances, follows an individual throughout her or his career. The validity of performance evaluations has been challenged in recent years, and some organizations have discontinued their use. Most organizations, however, regard performance evaluations as a valuable tool. Therefore, most organizations, rather than discontinuing the use of performance evaluations, have attempted to improve...