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Introduction Rapid environmental change globalization competition to provide innovative products and services changing customer and investor demands have become the standard backcloth for organizations To enhance competitive advantage has been the business strategy of the most organizations Recent theoretical works on business strategy have indicated that organization competitive advantage could be generated from strategic human resources management SHRM Integration with HRM strategy with the rest of business strategy is that firm performance is influenced by a set of HRM practices in the senior management process Boxall Purcell 2003 This has been supported by recent empirical evidence Arthur 1994 Huselid 1995 MacDuffie 1995 However important questions remain including whether SHRM guarantees positive firm performance outcome and the effect of different levels of SHRM implementation on firm performance in moderating the relationship between SHRM and firm performance In another word the relationship between HRM practices and organizational performance needs our further exploration Here in this essay the relationship between appraisal and organizational performance will be discussed Performance Appraisal All organizations must face up to the challenge of how to evaluate utilize and develop the skills and abilities of their employees to ensure that organizational are achieved and also to ensure that individuals gain as much satisfaction as possible from their jobs while making effective contributions As competition in many markets becomes more intense and global in nature the importance of performance appraisal has been recognizing as a key element of strategic human resource management ANDERSON 1993 Performance appraisal may be defined by Dessler 1997 as any procedure that involves Setting work standards Assessing the employees actual performance relative to these stands Providing feedback to the employee with the am of motivating to eliminate performance deficiencies or to continue to perform above par And four principal activities of the performance appraisal cycle were identified by Mohrman Resnick-West and Lawler 1989 Illustrated in figure below Figure The performance appraisal cycle Source Mohrman Resnick-West Lawler 1989 A performance
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