Russell Lansbury - School f Business,University f SydneyAustralia

The terms ‘aappraisal’ and ‘aassessment’tend to be used synonymously. More recently, ‘pperformance review’and ‘pperformance management’have emerged as description of the formal process of appraisal and assessment. A comprehensive definition of per-formance appraisal is the process of identifying, evaluating and developing the work performance of employees in the organisation, so that organisational goals and objec-tives are effectively achieved while, at the same time, benefiting employees in terms of recognitions, receiving feedback, catering for work needs and offering career guidance. This describes a comprehensive system of appraisal that involves a genuine two-way approach between employees and their supervisors. However, many appraisal systems take a more limited approach and are often more oriented to the needs of the employer than the employees.This accounts, in part, for widespread disillusionment reported by researchers on ap-praisal systems. A survey of US managers revealed that most believed there were no con-sequences for conducting performance appraisals and there were little practical value in doing appraisals thoroughly and consistently. Evidence from other recent surveys shows that mangers spend little time on the appraisal process, managers are not systematically trained in how to use rating formats, or how to conduct appraisal interviews, and are not held accountable for either the manner in which they conduct appraisals or the outcomes