This article reports the findings of a recent study of performance appraisal
systems in Australian industry, updating earlier research data in view of con
temporary organizational and industrial relations changes. Research results
suggest that, while substantial forward steps have been made, organizations
still have some way to go in their pursuit of 'best practice' appraisal schemes.
Performance appraisal (PA) is still a popular HRM tool, with increased
employee coverage and an emphasis on Management by Objectives. There is
some evidence that organizations are more closely customizing their PA
systems, sometimes in conjunction with quality programs, to meet their specific
HR objectives. Conversely, the objectives of many PA systems remain short-
term rather than strategic, and there appears to be a decline in the use of
formal PA feedback mechanisms.
Overall, this survey suggests a focus on performance evaluation rather than
training and development, and increasingly a 'hard' HRM perspective capi
talizing on current industrial relations changes.