PERFORMANCE APPRAISAL, REWARD, AND THE ATTAINMENT OF STRATEGIC GOALS
This first section of this research examines the performance appraisal and reward systems at Mervyn's Department Stores. The contributions of these systems to the attainment of the company's strategic objectives is considered in the second section of the research.
Formal personnel performance appraisal is a fact of life in most North American organizations of any size (Longenecker, Liverpool, and Wilson, 1988, pp. 311 320). As entrenched as the practice is, however, personnel performance appraisal continues to controversial (Heneman, 1987, pp. 431 448).
One important contemporary contention with respect to personnel performance appraisal is that the process will be effective only to the extent that managers and subordinates within an organization share perceptions as to (1) the purpose and function of the process, and (2) its effectiveness with respect to meeting the goals of both management and individuals (Longenecker, Liverpool, and Wilson, 1988, pp. 311 320).
The selection of individuals within organizations for leadership positions and for other forms of organizational reward is accomplished by a variety of methods, most of which depend upon the composite results of several factors recommendations of organizational superiors, educational background, past performance, and so forth. One factor which is found in most selection procedures, however, is the performance evaluation or performance appraisal (Lombardo, 1985, pp. 1 8). Thus, it is apparent that effective performance evaluation is one of the critical factors which contributes to the on going success of an organization. A formal performance appraisal process is in place at Mervyn's Department Stores.
Much of the evaluation of performance in North America is a process oriented procedure. A process orientation means that the evaluative criteria are related primarily to: (1) qualificat...