1) Personal Bias :
The biggest limitation of
performance Appraisal is subjectivity. Due to human element in Appraisal, there
is always a fear of one's own opinion coming in the way of Appraisal.
(2) Halo Effect :
The tendency of an individual
to rate an employee consistently high due to some earlier good performance
rather than his existing performance is called as carrying a halo around
oneself.
(3) Horn Effect :
The tendency of a superior to rate
a subordinate lower than his performance justifies due to some recent/earlier
failures.
(4) Lack of Uniform
Standards :
The standards used by different
departments in the organisation may not be the same, hence, rating
becomes unscientific and employees suffer. Some rates are too liberal while
others are too strict causing lack of uniformity.
(5) Appropriate
Appraisal Technique :
Selection of appropriate
appraisal technique is important to give the correct result. Some of the
techniques are time-consuming and costly and so avoided. If wrong techniques
are applied performance appraisal results may prove defective.
(6) Wrong Appraisal
by Superior :
Superiors have continuous and daily
relations with the subordinates, giving accurate ratings may lead to spoiling
relations with them which the superiors may want to avoid, hence higher rating
to the subordinates.
(7) Stress on
Individual and not on Performance :
Performance Appraisal must
lay stress on the performance of the individual and not on his individual and
not on his personal characteristics. Many a times this is overlooked and the
personnel characteristics comes in the way of his performance appraisal.
(8) Central Tendency :
Many a times to be on the safer
side the rater would put the rate on average scores. This happens
because of 2 reasons — first of all if the rater does not want low scores to
the ratee. Secondly, if he himself is not competent and would not like to
show his incompetency.
(9) Lack of
Importance to Self-Development :
Performance Appraisal is not
for witch hunting but for finding out strengths as well as weaknesses. The
strengths can be consolidated upon and the weaknesses too be removed through
appropriate training. However, this aspect is not given importance and so the
main objective of performance appraisal is neglected.
(10) Lack of
Communication and Participation with Employees :
Performance appraisal is not
complete without communicating to the employee the results of the appraisal and
also give him a chance to give his opinion, otherwise it is a one-sided affair
without participation of employee and will not lead to their development.
(11) Time-Consuming and Huge Paperwork :
Performance appraisal is a continuous job for the superiors. There
is need to continuously observe the subordinates, keep records, fill documents,
write reports, hence time-consuming and costly.
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any suggestion on my side