AppraisalBased

AppraisalBased, also spelled appraisal-based, is a performance management approach in which decisions about rewards, promotions, and development are primarily driven by systematic employee appraisals. The concept emphasizes the collection and use of objective data—such as key performance indicators, competency ratings, and goal attainment—to formulate a transparent assessment. Originating in the early 1990s, the methodology was developed as an alternative to the traditional, often informal, seniority‑based promotion systems that dominated many organisations. Early adopters were large multinational corporations seeking to align human‑resource practices with strategic objectives and regulatory compliance.

In practice, an AppraisalBased system typically involves multiple steps: the establishment of clear performance criteria, the gathering of evidence from a variety of sources (self‑assessment, peer feedback, manager ratings, and sometimes 360‑degree reviews), and a formal review meeting where the evidence is discussed and rated. Ratings are then translated into a scoring rubric or a set of categories that inform career progression decisions. Roledesign and HRIS software have been widely used to support data capture, score calculation, and reporting.

Critics argue that the method can become overly bureaucratic and may obscure contextual factors that influence performance. Proponents counter that its emphasis on tangible evidence reduces bias and improves fairness. Empirical studies report mixed results regarding its impact on employee motivation and organisational performance. Continued refinement of the appraisal‑data collection process and integration of real‑time feedback tools are seen as necessary to maximise the effectiveness of AppraisalBased management.