Performance appraisal in a family business

This qualitative study explored the perceptions of effectiveness of a performance review process at one family business. Ten employees across the firm were interviewed in order to describe the process, identify its strengths and weaknesses, and offer suggestions for improvement. Findings suggest that participants understood the process steps and timing, but had less accurate understanding of the process outcomes. Participants generally perceived the process as fair, helpful, and valuable to their development. Noted strengths included the process design and support from direct managers, executive leaders, and the organization. Weaknesses included the lack of structure, poor consistency in ratings, timing issues, and lack of goal alignment. Recommendations include improving the rating system, adjusting the process timing and structure, leveraging evaluation data as a talent management tool, and increasing stakeholder involvement. However, these study findings are considered exploratory, and more research should be conducted to determine how representative these findings are of family businesses