Fuzzy logic and performance evaluation: discussion and application

Purpose - This paper seeks to describe the development of the fuzzy logic model approach to decision making and its value for managers by illustrating its application to employee performance appraisals. Design/methodology/approach - An extensive literature review provided the framework for the model development in this research. Performance evaluations represent a critically important decision that often involves subjective information. Models and heuristic techniques that focus on the use of different types of information are available; however, with few exceptions, the models are not robust enough to be applied in a practical, managerially useful manner. Fuzzy logic models provide a reasonable solution to these common decision situations. Findings - Fuzzy logic can be a powerful tool for managers to use instead of a traditional mathematical model when evaluating the performance of personnel or teams. The flexibility of the model allows the decision maker to introduce vagueness, uncertainty, and subjectivity into the evaluation system. Research limitations/implications - This research calls attention to an alternative method of the performance evaluation system as opposed to the traditional quantitative methods. Future research in this area is needed to develop a method for relating membership values to linguistic variables in performance evaluation, as well as testing the sensitivity of membership values and their impact on the outcome. Originality/value - This paper provides a simple‐to‐use fuzzy logic model for establishing a more meaningful evaluation system.