This in turn means that the adequate decisions would be made. The high quality appraisal system creates opportunities for the employees to be promoted to higher positions, which also come with higher pays and more benefits, to create higher levels of employee motivation.

The performance appraisal system correlates the employee achievements with the adequate rewards. The offering of the proper rewards generates additional motivation. Some of the common benefits include premiums, bonuses or share packages. This last benefit sees that employees participate to the distribution of the profits and they are as such better motivated to support increasing organizational performances (Masternak, 1999).

4. Conclusions and discussion

The modern day staff member is a highly evolved and rewarded individual, and has attained this position as a result of the tremendous role he plays within the business community in his support of business success. In such a context, it is crucial for the economic agents to develop and implement a specific performance appraisal system which meets a wide array of characteristics, such as support for productivity, efficiency, transparency, morale and so on.

At a more particular level, a customized performance appraisal system is able to generate benefits at the level of respect, personal development, responsible stewardship and integrity in organizations. In terms of personal development, the most important evidence is offered by the means in which effective performance appraisal identifies employee characteristics. In this order of ideas, the performance appraisals can identify employee limitations and correct them through specific training programs. When the employees are subjected to these programs, they perceive them as opportunities for personal and professional development.

At the level of respect, the evidence...

In this order of ideas, a properly constructed performance appraisal system is conducted with respect for the individual, which in turn attracts the respect of the individual towards the evaluator, as well as towards the firm. The same situation is also observed at the levels of the impact the performance appraisal systems generate on responsible stewardship as well as on the integrity of the firm. In other words, the impact is a salient one, with limited evidence, but it is nevertheless expected to exist. At a more specific level, it could be assumed that a high quality performance appraisal system generates integrity and responsibility in the relationship between the employer and the employees. Furthermore, the employees are formed in the culture of integrity and responsible behavior, and they extrapolate it in their own relationships regarding the organization, such as employee-employer relations, employee-employee relations or relationships between the employee and the various stakeholder categories, such as customers or business partners. In essence then, a high quality performance appraisal system creates a wide array of organizational strengths, which in turn materialize in competitive advantages.