Multiple Uses of Performance Appraisal: Prevalence and Correlates

Performance appraisal is used in organizations for a variety of purposes. However, little empirical research has been conducted to determine (a) the extent to which performance appraisal is used for each of several purposes in industry, (b) the extent to which appraisal data may be used for multiple and possibly conflicting uses within the same organization, and (c) organizational correlates of these uses. A survey questionnaire designed to answer these questions was mailed to 243 members of Division 14 of the American Psychological Association who were employed in industry. A factor analysis of the 106 completed questionnaires indicated four general uses of information from performance appraisals. The use of performance appraisal to simultaneously make distinctions between and within individuals is common. Canonical correlation analyses indicated that organizational characteristics were significantly related to uses of performance appraisal.