Individual and Job-Based Determinants of Performance Appraisal: Evidence from Germany

Christian Grund () and Dirk Sliwka

No 3017, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: We investigate the use of performance appraisal (PA) in German Firms. First, we derive hypotheses on individual and job based determinants of PA usage. Based on a representative German data set on individual employees, we test these hypotheses and also explore the impact of PA on performance pay and further career prospects. The results include that PA is positively linked to an individual’s willingness to take risks. The performance of older employees and woman is evaluated less often. Furthermore, larger firms evaluate the performance of their employees more. We find evidence for a nonmonotonic relation between the hierarchical level and usage of performance appraisal: The performance of employees with very high or very low responsibilities is assessed less often.

Keywords: performance appraisal; performance evaluation; GSOEP (search for similar items in EconPapers)
JEL-codes: J33 M52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-eff
Date: 2007-08
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