Issues and Challenges in the Practice of Performance Appraisal Activities in the 21st Century


In every organisation, employees play a vital role in determining its survival. Employees become the ultimate asset to ensure that the organisation  operates as planned. The relation between the appraisal system and the organisation’s strategy is used as a strategic tool to achieve the organisation’s vision. This will evidently be a key factor in communicating values, promoting flexibility and maximizing individual potentials and contributions. Very often, employees who are not happy with the practice of the appraisal activities will send a huge impact on the organisation’s image. In the 21st  century, performance appraisal activities continue to become one of the most important functions in human resource management. The work environment and the employees have become more in tune because of the massive usage of information and communication  technology (ICT) in every organisation. This paper explains the relationship of the 21st century with performance appraisal activities and explores issues as well as challenges that arise in the appraisal activities.


Keywords: human resource management’s performance appraisal, strategic appraisal



Employee’s performance appraisal is a subject of great interest in any organisation. In every organisation, employees play a vital role in determining its survival (Rusli Ahmad, 2007a). In line with that, an employee is perceived as an important or valuable asset to an organisation and is the key or prerequisite factor to make sure the operation of the organisation or factory runs as planned.  Employees become the heart and pulse of the organisation and really important to determine the needs and expectancies of the client or customers (Muhd Rais Abdul Karim, 1999). This is aligned with the purpose of performance appraisal in the contemporary approach which emphasizes on employee who has full potentials that can be explored and expanded. Employees can be used positively to sustain the quality of service or product of the organisation. This is associated with the roles and responsibilities of the employees to perform at the highest level of their work competencies. Performance appraisal become more constructive and therefore the progress of the employees are improved (Rusli Ahmad, 2007b). With the achievement of the organisation’s vision and mission, employees can work together collaboratively with the organisation itself based on the win-win basis. In this context, performance appraisal can turn out to be a good device to plan a better career path for the employees.

Emi Pujiastuti and 1Mulyono