Strategic performance appraisal in team-based organizations: One size does not fit all

Abstract

Executive Overview The pervasive use of teams in today's organizations makes employee performance appraisal more challenging than in the past. Unfortunately, prescriptions offered in the business press often fail to consider the diversity of team forms used in team-based organizations. Teams differ in their membership configuration, the complexity of their tasks, and level of interdependence from other organizational units. In this article, we identify three team types and examine the fit between performance-appraisal characteristics and team types. Performance-appraisal characteristics include target (individual or team), type (outcome, behavioral, or competency-based), and data source (manager or multirater). Our analysis underscores the critical need for effective leadership in designing and implementing performance appraisal systems in team-based organizations.