SO, DID YOU DEVELOP YOUR COMPETENCE? The influence of performance appraisals on employees’ competence development

Abstract

This study focuses on the qualitative aspect of employee’s competence development that is of critical importance to both employee and organizational development. My study has shown that a) when employees were willing to develop and had a competent line manager, a proper performance appraisal process was executed, and that b) when a performance appraisal was well executed and followed up, then it had a positive effect on employee’s competence. Hence, when performance appraisal was properly executed it influenced employees’ competence positively. I would therefore conclude that performance appraisals hold great potential as a tool for employee development. Unfortunately, its application seems to be hampered by a lack of understanding of the tool itself as well as a lack of competence among those who use it. If organizations educate both line managers and employees on why and how to use performance appraisal, it will become a powerful tool for competence development.