Performance appraisal reactions: A review and research agenda

Abstract

Employee reactions to performance appraisals are essential to appraisal effectiveness: They are correlated withsubsequent job attitudes, motivation, and performance. Yet, many managers dread giving appraisal reviews and employee reactions are often negative. Although performance appraisal research has traditionally focused on psychometric propertiesof performance ratings, there is a burgeoning literature on appraisal reactions. In this chapter, this burgeoning literature is reviewed to identify key predictors of appraisal reactions, opportunities for future research, as well as implications for managers and organizations. A conceptual model is developed to guide future research; this model implies thatmore longitudinal and multilevel studies are needed to better understand the processes whereby predictors are related toappraisal reactions. This review suggests that managers and organizations should pay special attention to leader-member exchange quality, due process performance appraisal, and providing opportunities for voice in the appraisal review so asto improve performance appraisal effectiveness.