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Purpose

– The purpose of this paper is to highlight the leadership route for managers to manage performance appraisal effectively.

Design/methodology/approach

– This paper outlines the importance of playing down personal feelings about individual employees, getting the best out of high and low performers, appreciating good work, connecting with subordinates, being a role model and making the most of diversity.

Findings

– This paper contends that performance management systems alone can never bring about optimum performance; they must be accompanied by sensitive and inspired leaders who treat their employees as individuals.

Practical implications

– Attention is drawn to the importance of converting managers into leaders who can deal easily and comfortably with diversity and the unforeseen.

Social implications

– Some of the challenges of dealing with the modern, diverse workforce have been highlighted.

Originality/value

– This paper advances the view that good leadership is a tool to balance structured performance management systems with the flexibility needed to tailor the systems to specific employee needs.

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