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Appraisal as unfinished 
business
Appraisal should be part of a continuing future-focused process of 
performance management, not a way of 'wrapping up' the past year's 
performance issues. 
Appraisal as annual event
Many targets set at annual appraisal meetings become irrelevant or 
out of date. Feedback, goal adjustment and improvement planning 
should be a continuous process. 
4.2 Appraisal and pay 
Another problem is the extent to which the appraisal system is related to the 
pay and reward system
. 
Many employees consider that positive appraisals should be rewarded, but there are major drawbacks to 
this approach. 
(a) 
Funds available
for pay rises rarely depend on one individual's performance alone – the whole 
company has to do well. 
(b) 
Continuous improvement 
should perhaps be expected of employees as part of their work and 
development, not rewarded as extra. 
(c) 
Performance management is about a lot more than pay for 
past
 
performance – it is often 
forward 
looking
 
with regard to future performance. 
4.3 Upward appraisal 
New techniques of appraisal aim to monitor the appraisee's effectiveness from a number of perspectives. 
These techniques include upward, customer and 360 degree feedback. 
A notable modern trend, adopted by some companies is 
upward appraisal
, whereby employees are not 
rated by their superiors but by their subordinates. The followers appraise the leader. 
Advantages of upward appraisal
include the following. 
(a) 
Subordinates tend to know their superior better than superiors know their subordinates. 
(b) 
As all subordinates rate their managers statistically, these ratings tend to be more reliable – the 
more subordinates the better. Instead of the biases of individual managers' ratings, the various 
ratings of the employees can be converted into a representative view. 
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