The Future of Performance Appraisal Systems: A Report for Saudi Arabia Airlines
COLLAPSE

Performance appraisal systems are evolving rapidly due to shifts in work structures,
technological advancements, and employee expectations. Saudi Arabia Airlines, as a
leading national carrier, must reassess its existing performance management strategies
to remain agile and competitive. This report outlines two key challenges in current
appraisal practices and recommends three major changes to improve timeliness,
accuracy, and alignment with strategic objectives.
Key Challenges in Current Appraisal Practices
Subjectivity and Evaluator Bias
A major limitation of traditional appraisals is their subjectivity. Evaluators often rely on
personal perceptions rather than measurable outcomes, leading to biased ratings.
Common errors such as the halo effect, leniency bias, and central tendency distort
assessments (Aguinis, 2019). These biases can undermine employee trust in the system
and reduce motivation.
Infrequent and Inadequate Feedback
Many organizations still rely on annual or semi-annual appraisals. This infrequency
creates a disconnect between performance issues and developmental interventions.
Without regular feedback, employees are unable to correct behaviors or build on
strengths in a timely manner. According to Armstrong and Taylor (2020), performance
management is most effective when it is continuous and forward-looking rather than
retrospective.
Recommended Changes
1. Transition to Continuous Appraisal Systems
Saudi Arabia Airlines should replace the traditional annual review with more frequent,
structured check-ins—such as quarterly or monthly reviews. This shift allows real-time
recognition of achievements and prompt corrective action, enhancing performance
agility.
2. Incorporate Two-Way and 360-Degree Feedback
Appraisal systems should encourage two-way communication between managers and
employees and include feedback from peers, subordinates, and even customers. This
holistic view provides a fairer and more comprehensive evaluation (London & Smither,
2002). Furthermore, it builds a culture of open communication and shared
accountability.
3. Align Individual and Organizational Goals
Using the principles of Management by Objectives (MBO), employees and supervisors
should co-develop goals that support the airline’s strategic vision. For example, aligning
personal performance metrics with KPIs such as customer satisfaction or on-time
performance enhances motivation and organizational coherence (Aguinis, 2019).

Conclusion
Modernizing the performance appraisal system is essential for Saudi Arabia Airlines to
adapt to the realities of remote work, dynamic labor markets, and employee
development needs. A system based on continuous feedback, objective measurement,
and strategic alignment will foster a high-performance culture and help the airline
achieve its long-term goals.
References
Aguinis, H. (2019). Performance management (4th ed.). Chicago Business Press.
Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource
management practice (15th ed.). Kogan Page.
Smither, J. W. (2002). Feedback orientation, feedback culture, and the & ,.London, M
longitudinal performance management process. Human Resource Management Review,
12(1), 81–100.

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