Research On Orientation Mechanism Of Performance Appraisal

In the 90s of last century, Performance Appraisal was introduced into China as a scientific and effective management tool, raising highly consciousness from people of managerial field and enterprises. However, when enterprises use this tool, they come across various confused situation. The article considers it is because people's understanding and research about it mainly focus on its application, in technical and usage aspects. Hence, the article points out 2 pieces of deeply understanding about Performance Appraisal through Systematic Theory and Dynamic Mechanism Theory: 1. The core function of it is Orientation Function; 2. It becomes the critical control point of Organizational Management System by exerting its Orientation Function thoroughly.In order to explain and prove the understanding above, the article discusses Performance Appraisal from two hierarchies: In order to prove Performance Appraisal's core function is Orientation and show how it functions, the article provides a micro-view to describe the process of its forming the Orientation Function with its components, and unveils its Orientation Mechanism. Then, the article composes an organizational management dynamic system in a macro-view, suggesting that organizational goals and individual goals as the realistic restriction should be balanced, and the systematic factors, like performance controllable, right-responsibility-benefit matching, equality and justice, credibility, and benefit relevance, should be guaranteed, while Performance Appraisal is to exert its Orientation Function thoroughly. Meanwhile, the article also describes the mechanism of Performance Appraisal actualizing its critical control-point-status in Organizational System.Finally, the article justified Performance Appraisal's Orientation Function and its critical-control-point status in real situation through an enterprise's case and relative questionnaire analyzed.