Abstract
Purpose. The purpose of this research was to discover how twenty-three cited organizations that had abandoned traditional performance appraisal five or more years ago currently satisfy the six primary intended purposes of appraisal and to understand their practices and processes. Methodology. The researcher used a descriptive, multiple case study methodology. The population consisted of twenty-three early adopters to the theory of abolishing performance appraisal. Data for this study were gathered through semistructured telephonic interviews. Theoretical arguments, practices, and processes relating to the theory of abolishing performance appraisal were analyzed using pattern-matching and rival explanation strategies and techniques. Findings. This study found seventeen of the twenty-three early adopters continued to use unbundled practices in satisfying the intended purposes of performance appraisal. Common themes were the elimination of rankings and ratings, an emphasis on frequent employee communications, and clarity of purpose, philosophy, and values. Early adopters also separated feedback and coaching from compensation. These organizations reported higher levels of employee satisfaction, exceptional trust levels, lower turnover, greater collaboration, a customer focus, and higher customer satisfaction levels. Among organizations returning to traditional performance appraisal, the universal characteristic was the introduction of a new chief executive officer. Conclusions. An environment of mutual trust between employees and management exists in organizations abolishing performance appraisal. In organizations decoupling the six intended purposes of performance appraisal, support from the chief executive officer and senior management is fundamental combined with an employee-centric culture marked by management practices supporting sharing of information, encouraging open and frequent communications, access to learning opportunities, a genuine respect and caring for employees, and a focus on workplace systems improvement. Small organizations often use informal practices and processes. As they grow, formalization is natural and can be introduced without sacrificing the organization's culture or practices. Decoupling of the intended purposes of performance appraisal is viable and sustainable. Implications for action. Recommendations were made regarding the culture required to support decoupling and the role of the chief executive officer. The process of decoupling begins with an assessment of need and readiness together with a clear vision and well-articulated values and principles.