Performance
appraisal technique is very beneficial for an organization for taking decisions
regarding salary fixation, demotion, promotion, transfer and confirmation etc. But,
it is not freed from problem In spite of recognition that a completely
error-free performance appraisal can only be idealized a number of errors that
extensively hinder objective evaluation. Some of these problems are as follows:
1. Biasness in rating employee:It is the
problem with subjective measure i.e. the rating which will not be verified by
others. Biasness of rater may include:
(a)
Halo Effect:
It is the
propensity of the raters to rate on the basis of one trait or behavioral
consideration
in rating all other traits or behavioral considerations. One way of minimizing
the halo effect is appraising all the employees by one trait before going to
rate on the basis of another trait.
(b)
The Central Tendency Error:
It is the error
when rater tries to rate each and every person on the middle point of the
rating scale and tries not to rate the people on both ends of the scale that is
rating too high or too low. They want to be on the safer side as they are
answerable to the management.
(c)
The Leniency and Strictness Biases:
The leniency
biasness exists when some raters have a tendency to be generous in their rating
by assigning higher rates constantly. Such ratings do not serve any purpose.
(d)
Personal prejudice:
If the raters
do not like any employee or any group, in such circumstances he may rate him on
the lower side of the scale, the very purpose of rating is distorted which might
affect the career of employees also.
(e)
The Recent Effect:
The raters
usually retain information about the recent actions of the employee
at the time of
rating and rate on the basis of recent action taken place which may be
favorable or unfavorable at that point of time.
2. The
superiors may be unsuccessful in conducting performance appraisal of employees
and post performance appraisal interviews.
3.
The performance appraisal is mostly based on subjective assessment.
4. The
performance appraisal techniques have a low reliability and validity in terms
of result.
5. Ratings an employee on the negative side may
disturb interpersonal relations and industrial relations system.
6.
Appraisers opinion on the performance of the employee may lead to setback on
production.
7. An
organization may give emphasis to punishment if an employee has not done a good
job rather than providing training.
8. Few ratings are based on guess work.
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