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IntroductionPerformance management systems in organizations should rest on principles of good management supported by extensive research in organizational psychology and human resource management. Basic methods of performance management encompass dimensions of performance, goals for performance and career development, training and development programs, supervisory performance appraisal, multisource performance ratings, feedback, coaching, and rewards. Unfortunately, human resource practitioners and managers may misunderstand or not be aware of research on these central elements of performance management systems. In fact, they may have erroneous views that do not stem from research at all. Managers have an excuse since they were not trained in human resources. Practitioners don't.This article focuses on two key elements of performance management systems: rater accuracy and goal setting. We begin by highlighting gaps between research and practice in these areas pointed out by Rynes, Colbert, and Brown (2002). These gaps suggest problems with how organizations manage and assess employee performance. We then review theory and research on rater accuracy and goal setting. In the final section, we suggest how to design and assess these key elements of performance management programs, and related elements such as feedback and coaching, to ensure that they meet current and emerging organizational needs and re- PERFORMANCE MANAGEMENT AND ASSESSMENT: METHODS FOR IMPROVED RATER ACCURACY AND EMPLOYEE GOAL SETTING

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Pulakos and O' Leary (2011) argue that the vast majority of organizations should not be involved in the practice of goal cascading, and they also argue against the use of SMART goals in the vast majority of work situations. Arguments against the use of these two performance management-related processes, as well as other arguments presented by Pulakos and O'Leary, we feel, are based on the assumption of process perfection. We have learned after numerous performance management system implementations-and subsequently managing those implementations in several organizations as internal industrial-organizational (I-O) professionals-that process utility should take precedence.

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