Limitations of Performance Appraisal Essay

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LIMITATIONS OF PERFORMANCE APPRAISAL 1. LACK OF CLARITY – THE OBJECTIVE OF PERFORMANCE APPRAISAL IS TO EVALUATE AND DEVELOP EMPLOYEES. SO, PERFORMANCE APPRAISAL SHOULD BE (STANDARDS/RULES) CLEAR, (NOT SUBJECTIVE) OBJECTIVE, CONSISTENT, DEPENDABLE AND ACCURATE (THE RESULTS). • MANY APPRAISAL PROGRAMS ARE IMPOSED WITHOUT THOROUGH AND PROPER TRAINING, BECAUSE WE ARE PRE-ASSUMING THAT MANAGERS ARE CAPABLE OF IMPLEMENTING THEM ANYWAY. BUT HOW CAN A SYSTEM BE CLEAR, OBJECTIVE, CONSISTENT, DEPENDABLE AND ACCURATE IF THE MANAGER EXECUTING IT LACKS THE APPROPRIATE SKILLS, TRAINING OR TIME? • SO THE HR DEPT. SHOULD CONDUCT PROPER TRAINING OR SEMINAR TO THE MANAGERS, BUT ALSO, NOT ONLY TO THE MANAGERS BUT TO ALL EMPLOYEES WHO ARE CONCERN IN THIS EVALUATION SYSTEM. THE TRAINING SHOULD TACKLE THE DO’S AND DON’T’S OF THE MANAGERS AND EMPLOYEES. 2. APPRAISAL ERRORS: THESE ARE AS FOLLOWS; • HALO EFFECT – OCCURS WHEN THE MANAGER GENERALIZES 1 POSITIVE PERFORMANCE FEATURE OR INCIDENT TO ALL ASPECTS OF EMPLOYEE PERFORMANCE RUSULTING IN HIGHER RATING. • HORN EFFECT - OCCURS WHEN THE MANAGER GENERALIZES 1 NEGATIVE PERFORMANCE FEATURE OR INCIDENT TO ALL ASPECTS OF EMPLOYEE PERFORMANCE RUSULTING IN LOWER RATING. • THE RECENCY EFFECT – HAPPENS WHEN A RATER GIVES GREATER WEIGHT TO RECENT OCCURRENCE WHEN APPRAISING ANEMPLOYEE’S PERFORMANCE. THIS SORT OF EFFECT IS AN UNDERSTANDABLE RATER’S ERROR. IR MAY NOT BE EASY FOR THE MANAGER TO REMEMBER ALL EVENTS THAT HAPPENED LIKE FOR INSTANCE, 6 MONTHS AGO. • CONTRAST ERROR – OCCURS WHEN EMPLOYEES ARE RATED RELATIVELY TO OTHER EMPLOYEES RATHER THAN TO PERFORMANCE STANDARDS. FOR EXAMPLE; IF EVERYONE ELSE IN A GROUP IS DOING MEDIOCRE JOB, AN EMPLOYEE PERFORMING SOMEWHAT BETTER MAY BE RATED AS EXCELLENT BECAUSE OF THE CONTRAST EFFECT. • RATER BIASES - THIS OCCURS WHEN MANAGER

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