Performance assessment is as old as organised activities of human being. It has evolved in concept and application. This Blog analyses the history of performance assessment and its transition towards a holistic performance management system from
ancient times to 21st Century.
Performance assessment or appraisal of an individual is as old as mankind. The holy Bible has many examples where the
evaluation of individual performance is an important issue. “The Lord has filled him (Bezalel) with the spirit of God, in wisdom
and understanding, in knowledge and all manner of workmanship to design artistic works, to work in gold and silver and bronze,
in carving word, and to work in all manner of artistic workmanship” (Exodus, 35, pp. 31-3). Moses selected the man who was
known to be most skilled craftsman from the tribes of Israel to build and furnish the tabernacle of the Lord in approximately 1350
BC (Wiese and Buckley, 1998).
Around 3000 BC, the ancient Egyptians had to “encourage” their workers to build the great pyramids – and, unwittingly, they
utilized performance management systems to do so. Their system revolved around whipping those workers who did not perform
as required, to achieve their goals. This worked effectively for them as evidenced by the splendid pyramids that they built. There
is evidence that other ancient civilizations such as Rome and China also had performance management systems (Furnham, 2004).
Indus Valley (before 1500 BC)
While ancient Egypt and Mesopotamia relied heavily on slaves and forced labor, the Indus civilization appears to have relied
more on craftsmen and trade. Standardized weights enabled traders to make fair trades. The weights may have been used by
officials to levy taxes. The Indus people of Mohenja-Daro and Harappan had a system of measurements. They smelted, cast and
used copper and bronze. Harappa kilns produced millions of bricks. The Indus people used the wheel for transportation. Their
performance measurement criteria back then was the total production by each individual. Quality of the product also mattered.
Potters producing better quality vessels and of better designs used to be appreciated.
However, this period produced many craftsmen having different skillset. The remains of the ancient Indian civilisation
unearthed at Mohenjodaro, Harappa, Kaushambi and the various inscriptions found all over the country show that the
development of goldsmithy, blacksmithy, carpentry, ivory- carving, ceramics industries and spinning and weaving of yarn and
cloth was phenomenal in ancient India (Saran, 1957)
16th and 17th Century
Ignatius Loyala established a system for formal rating of the members of the Jesuit Society (Whisler & Harper, 1962). Ignatius
was a nobleman who had a military background. He formed the Society of Jesus, which was approved in 1540 by Pope Paul III.
He wrote the Jesuit Constitution, adopted in 1553, which created a centralised organization and stressed acceptance of any
mission to which the pope would call them. According to Pontes (2010), formal performance appraisal programs were not new.
St. Ignatius of Loyola used a combined system of notes and reports of activities and potential of each of his Jesuits.
In 1648, Dublin (Ireland) Evening Post has a system of evaluating legislators by using a rating scale based upon personal qualities
(Hackett, 1928), as cited in (Wiese & Buckley, 1998).
18thand 19th Century
In the 18th
-19th centuries there were early forms of performance appraisal in Britain and USA, and most Western armies did
appraisals in the 19th century (Furnham, 2004). In 1776 Adam Smith discussed the application of principle of specialization to
manufacturing workers, its control and concept (Balasubramanian, 2002). With this, the monitoring of manufacturing workers’
performance was easy and rewarded accordingly.
Performance management theory and practice in the United States started with the Industrial Revolution in the late 18th
century. The earliest performance appraisal programs during the Industrial Revolution were relatively crude and simple. Workers
were evaluated and paid primarily on the basis of quantity output -- the number of "pieces" they satisfactorily turned out.
Frequently, management provided for bonuses and other tangible rewards to recognize employee contributions to the company
(Pratt, 1991).
In 1800, James Watt introduced standards of operating procedures, specifications, work methods, incentive wages and even
bonus based on performance at the time of Christmas. However, it was Robert Owen who recognized the need for personal
practices in 1810. He was the first who assumed responsibilities for training of workers (Balasubramanian, 2002).
In the late nineteenth and early twentieth century, performance appraisals were used primarily by military and government
organizations – due to their large size, hierarchical structure, geographic dispersal, and the necessity to promote the top
performers to higher organizational levels. At this time, most private organizations used informal measures to evaluate individual
performance and make subsequent administrative decisions (Wiese & Buckley, 1998).
20th Century
In 1914, development of performance appraisals in United States industry began with early work in salesman selection by
industrial psychologists at Carnegie-Mellon University, who used trait psychology to develop a man-to-man rating system. The
army used this system during World War I to assess the officer performance. After the war, business leaders, impressed by the
achievements of the army researchers, hired many of the men who had been associated with the work in man-to-man appraisals.
Industry wanted to use the contributions of this new breed of psychologist (Scott, 1941) as cited in (Wiese & Buckley, 1998).
Between 1918 – 1950, the widespread use of performance appraisal techniques with blue-collar employees didn't start until
after World War I. Appraisal systems for measuring managerial and professional employee performance weren't used extensively
until about 1955 (Pratt, 1991).
Prior to World War II, performance appraisal systems tended to exclude top management, generally used graphic-rating scales
and had just one or two forms for all employees regardless of the job performed or skills necessary (Spriegel, 1962).
In the US, passage of the Civil Rights Act of 1964 and the 1966 and 1970 Equal Employment Opportunity Commission
Guidelines for Regulation of Selection procedures created a need for improvement in organizational appraisal practices. These
legal considerations exerted strong pressure on organizations to formalize, validate, and organize appraisal systems (Murphy &
Cleveland, 1995)
Table 1: Performance Appraisal Approach and Measure in different timelines
|
Time Frame
|
Approach
|
Measure
|
|
3 rd AD
|
Qualitative
judgement on character
|
How
|
|
Pre 1800s
|
First examples
of traits / competencies
|
How
|
|
1800s
|
Narrative
report
|
What / How
|
|
1920s
|
Task based
output e.g., ‘piece work’
|
What
|
|
1950s
|
Trait-based,
critical incident technique
|
How
|
|
1960s
|
Management by
Objective
|
What
|
|
1970s
|
Assessment
Centre
|
How
|
|
1980s
|
Hybrid
|
What / How
|
|
1990s
|
Performance
Management
Competency
Development
360 feedback /
evaluation
Balanced
scorecard
|
What / How
How
How
What / How
|
(Mills, 2002).
By the end of 20th century, performance appraisal appears to be nearly universal, and the apparent importance of performance
appraisal as a tool for managing human resources has increased. Innovative use is now being made in some organizations of a selfappraisal system, especially for managers and higher-level professionals (Pratt, 1991).
Performance appraisals are being used in almost all the organizations across the world in some form. The performance
management system has been continuously evolving in every industry to cope up with current scenario, which enables individuals
to work in alignment with organisational goal. In 21st century, performance management system has become an integral part of
Employee Engagement (Rath, 2018).
Amstrong, M. (2009) ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. 11th edn [online].Available at: Armstrong's Handbook of Human Resource Management Practice by Armstrong, Michael. - PDF Drive [Accessed on 7th of December 2022]
Balasubramanian, C.A. (2002) Personnel Management, Everest Publishing House, 5th Edition.
Furnham, A. (2004) Performance management systems, European Business Journal, 16(2), pp. 83-94.
Mills, C. (2002) Performance Management under The Microscope, Shri Publication, IndIa.
Murphy, K. R. & Cleveland, J. N. (1995) Understanding Performance Appraisal: Social, Organizational and Goal Based Perspectives, Sage, Thousand Oaks, CA.
Pratt, H. J. (1991) Principles of Effective Performance Management, ARMA Records Management Quarterly,
25(1).
Rath, A. (2018) "Evolution of Performance Management System: A Review of Literature", INTERNATIONAL JOURNAL OF CREATIVE RESEARCH THOUGHTS, 6(2), p. 875 [Online]. Available at: https://www.ijcrt.org/papers/IJCRT1813200.pdf. [ Accessed on 7th of December, 2022].
Saran, K. M. (1957) Labour in Ancient India, Osmania University Library Archives, Vora &
Co, Mombay.[Online]. Available at: https://archive.org/stream/labourinancienti031368mbp/labourinancienti031368mbp_djvu.txt. [ Accessed on 7th of December 2022].
Spriegel, W. R. (1962) Company practices in appraisal of managerial performance, Personnel, 39(77).
Whisler, T. L. & Harper, S. F. (1962) Performance Appraisal: Research and Practice, New York: Holt, Rinehart
and Winston.
Wiese and Buckley, 1998