||The introduction of a new appraisal system has been seen as a common practice for firms to map its strategic goals and organizational objectives. Such a practice can be seen as a kind of organizational change. Previous studies on the introduction of new appraisal system tend to adopt a cross-sectional approach to examine the effect of the new appraisal system from various dimensions. In the mean time, how the new appraisal system is forming and how the member of organizations affect the shaping of the appraisal system are basically neglected. In order to fill this gap, this research adopted a longitudinal perspective to examine how a sub-business unit (SBU) of L Company introduced a new appraisal system. We particularly concerns how this new appraisal system is shaping, why the leader of this SBU introduced a new appraisal system, how employees react to the introduction of this new system, how leaders and employees perceive the change of the appraisal system.|
A grounded approach was implemented to explore the introduction process of this new appraisal system. Action research was used as the main research method. Information was collected from the participation of the introduction of the new appraisal system based on interview, observation, field log, and internal data of the firm.
In this study, we find that the introduction of new appraisal system was driven by the change of external environment and the motivation of the leader of the SBU. Additionally, employees would resist the change of the new appraisal system. Such a resistance was caused by the change of routine, the perception of the reasonability and the sense of equities. The new appraisal system, in essence, was the outcome of the communication between the leader and the employees of this SBU. At last, leader and employees viewed appraisal system differently. The leader saw the new appraisal system as a means to realize strategies, while employees tended to perceive the change of appraisal system as a punishment.