PERFORMANCE APPRAISAL SYSTEMS: A REVIEW OF MODERN PRACTICES AND OUTCOMES

Abstract

Performance appraisal systems have evolved significantly in recent decades, transitioning from traditional top-down evaluations to more dynamic, multidimensional approaches. This review examines modern practices in performance appraisal, including 360-degree feedback, continuous performance management, and goal-oriented appraisals aligned with organizational strategy. Emphasis is placed on the integration of technology, such as artificial intelligence and data analytics, in enhancing the objectivity and efficiency of evaluations. The review also explores the psychological and organizational outcomes associated with various appraisal models, including employee motivation, satisfaction, retention, and productivity. By analyzing contemporary trends and empirical findings, the paper highlights best practices and emerging challenges in designing fair, effective, and development-oriented appraisal systems.