Achieving performance appraisal system goals: Understanding the relationship between business-level strategy and performance appraisal purpose

Though increased attention has been given in the human resource management literature to the strategic use of certain aspects of an organization's personnel/human resource management system, little is known about the role of performance appraisal (PA) system purpose in facilitating implementation of one particular strategy versus another. Focusing on two basic dimensions of business-level strategy and two distinct PA system purposes, a contingency-based theoretical model suggests how strategy and PA purpose interact to affect achievement of PA system goals.; Case study data on four firms are presented and discussed. Strategically appropriate intended PA system purposes were found in two of the four firms. In three of the four firms, strategically appropriate PA system outcomes were achieved. There is support for the research proposition that achievement of PA system outcomes is contingent upon a strategy/PA purpose congruence. The moderating effect of acceptance of PA system purpose is unclear.; A revised General Research Model is presented for use in future research on the relationship between strategy and PA purpose.