According to Laudon and Laudon (2015) a good performance appraisal system can have a significant influence on organizational performance.
Majority of companies have a formal appraisal system as part of their performance system. Etisalat Group has implemented a formal appraisal system whose purpose is to aid in decision making in areas such as retention, promotion, termination, and to determine job expectations. In addition, the appraisal system is used to determine training needs across the organization. Employees complete the appraisal forms in which they rate themselves. Completed appraisal forms are submitted to department heads who give a parallel rating on all employees.
Performance appraisal is similar across all departments and a performance review process is completed at the end of the company’s financial year. Rating scale method is a performance appraisal form where the department head or direct supervisor simply ticks employee rating against his own rating on areas such as judgment, dependability, initiative, cooperation, and quality of work. The company employs the 360-degree approach where feedback is gathered from all employees that interact with the employee being rated. However, the company does not train employees on its rating approach.
