NEXT-GENERATION PERFORMANCE APPRAISAL: BALANCING TECHNOLOGY AND HUMAN-CENTRIC FAIRNESS

In the digital era, performance appraisal systems are undergoing significant transformation driven by artificial intelligence (AI), analytics, and continuous feedback platforms. Traditional appraisal methods are often criticized for bias, subjectivity, and inefficiency, while digital systems promise real-time evaluations, predictive insights, and improved fairness. However, ethical concerns, employee acceptance, and cultural adaptability remain major challenges. This paper critically reviews contemporary literature (2023–2025) and leading practices of global firms such as Adobe, Microsoft, and Infosys to assess the effectiveness of digital appraisal systems. It identifies research gaps, articulates the problem of balancing technological efficiency with employee trust, and proposes a reimagined framework for performance appraisal. The study contributes to advancing HRM scholarship and offers actionable strategies for organizations seeking sustainable, transparent, and equitable appraisal systems in the digital age. Keywords: Performance Appraisal, Artificial Intelligence, Digital HRM, Employee Perception, Organizational Performance.