Abstract

In the contemporary knowledge-based economy human factor is one of the core competitive advantages of high-tech enterprises. Crucial to the development and commercialisation of innovations is the development of competencies of the human resources.
Substantial part of the high-tech enterprises are challenged to define precisely what are the most important competencies they need to evaluate and to reward, as well as to foster and develop further in their personnel in order to improves their performance. The aim of the paper is to suggest and analyze the role of an appraisal and performance management model. The model is aimed at helping managers evaluate effectiveness and efficiency of the personnel performance. Further, it can be used as a tool that will aid the decision making process concerning appraisal and reward, training and development, and last but not least the career growth.