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Traditional performance appraisal systems have long been used as a mechanism for evaluating employee performance, determining compensation, and making promotion decisions. These systems were designed for relatively stable organisational environments characterized by hierarchical structures, routine work, and clearly defined job responsibilities. However, the emergence of knowledge-based organisations, digital transformation, agile work practices, remote work, and increasing emphasis on innovation have exposed significant weaknesses in traditional appraisal methods. Modern organisations require dynamic performance management systems that not only assess past performance but also facilitate employee growth, continuous learning, career development, and organisational adaptability. One of the major limitations of traditional performance appraisal systems is their excessive focus on annual or periodic evaluation. Performance is often reviewed once or twice a year, making feedback delayed and less relevant. Employees may not remember specific incidents, while managers may rely heavily on recent events rather than the employee's overall contribution. In rapidly changing business environments, annual reviews fail to provide timely guidance, making corrective actions less effective. Another limitation is the emphasis on past performance instead of future development. Traditional appraisal systems primarily evaluate what employees have already achieved rather than identifying future potential, learning needs, or career aspirations. As a result, appraisal becomes a control mechanism instead of a developmental process that supports long-term organisational capability. Subjectivity and evaluator bias also undermine the credibility of traditional appraisal systems. Managers may exhibit halo effect, horn effect, central tendency, leniency, strictness, recency bias, similarity bias, or personal prejudice. These ________ ______ ________ ____ ________.
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