How to Use the Performance Appraisal System as a Motivator to Improve Organizational Commitment

Since the new public management (NPM) type administrative reform, many organizations have introduced the performance-oriented management and performance appraisal has been focused as a type of the performance-oriented management. Performance appraisal provides information that is relevant for many personnel decisions, including salary increase, recommendations for promotion, transfers, and training programs, as well as for employee development and performance feedback. Organizations use performance appraisal depending upon various goals. However, performance appraisal systems often involve multiple, conflicting goals. Although performance appraisal provides various uses, it cannot accomplish all uses at once. Previous studies of performance appraisal have focused on how employees react or accept performance appraisal and how to design performance appraisal effectively. Therefore, I will examine the use of performance appraisal in light of improvement of organizational commitment.