The performance appraisal process provides an opportunity for introducing organizational change. It facilitates the process of change in the organizational culture. The interactive sessions between the management and the employees, the mutual goal setting and the efforts towards the career development of the employees help the organization to become a learning organization. Conducting performance appraisals on a regular basis helps it to become an ongoing part of everyday practice and helps employees to take the responsibility of their work and boosts their professional development.

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negative or positive way), thus having an impact on the collective performance.
Performance appraisal: An opportunity for an organisational culture shift

  • Performance appraisal process focuses on the goal setting approach throughout the organisation.
  • Performance appraisal helps the clarity and understanding of the roles and responsibilities of the employees.
  • The performance appraisal processes have the potential positive effects on recruitment
  • It increases organisational effectiveness i.e. what to do and how to do through a formal and structured approach.
  • Some evidence of the beneficial effects of team rewards

Therefore, performance appraisal is also an important link in the process of change in organization culture.

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