5. Structure of performance appraisal systems

The construction of a performance appraisal system is a complex endeavor, based on both theoretical as well as practical considerations. John J. Gabarro and Linda a. Hill (1995) for instance argue that managers ought to construct their appraisal systems in a critical manner, based on both pre-existent models and frameworks, but also on internal features within the organization. Cynthia Morrison Phoel (2011) and her co-editors argue that the main criterion to an effective appraisal system is represented by feedback.

Kevin R. Murphy and Frank E. Saal (1990) then argue that there exists a triple structure to create frameworks for employee appraisal. The frameworks are constructed based on four criteria: the constituents, the goals, the specific objectives and the selection criterion. Based on the features of each framework, the manager would decide. For instance, in the case of the first framework, the decision would revolve around the promotion of the best rated employees. In the case of the third framework however, the decision would regard the measurement of error leniency. The diagram below reveals the three frameworks:

Source: Murphy and Saal, 1990

6. Performance appraisal systems in retail

At the level of the retail industry, the specialized literature is rather scarce in offering details. At a generic level, it is agreed that appraisal systems have an increased applicability in assessing the sales staff, and this would be due to a series of elements, namely:

Performance appraisal systems improve the quality of the customer service

Performance appraisal systems increase upselling

Performance appraisal systems allow objective comparisons among sales staffs

Performance appraisal systems improve the reputation of the retail organization (Mohr, 2011).

Aside from these generally accepted specifics however, the specialized literature does not present the reader with particular applications of performance appraisal systems. In essence, this scarcity of information points out to the need for additional study in the field of performance appraisal applied within the retail community and at the level of the retail staff. This subsequently creates justification for the current study, as well as reveals its theoretical and practical significance in the creation of new sources of information which can be used for...

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