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What are the problems associated with performance appraisal briefly discuss the statement with solution?
The problem with subjective measure is the rating which is not verifiable by others and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and (e) the recent performance effect
(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of one trait or behavioral consideration in rating all others 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 error of Central Tendency: Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job and person he is rating or least interest in his job.
(c) The Leniency and Strictness: The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any purpose. Equally damaging one is assigning consistently low rates.
(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees.
(e) The Recent performance Effect: The raters generally remember the recent actions, of the employee at the time of rating and rate on the basis of these recent actions favorable or unfavorable than on the whole activities.
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Performance management is not merely for appraisal but is for accomplishment and improvement of performance?
That is correct!The objective of performance management is to review our performance (relating to work,manufacturing,production),and to identify where improvements can be made (or where problems are occurring and why they occurring),thus enabling us to correct the problems and improve our efficiencies & eliminate errors.
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Is there any relationship between productivity and performance appraisal?
Espousing on the importance of performance appraisals,Linda S. Pettijohn a renowned HR scholar and others have regarded it as a fundamental part of any organization (Pettijohn et al 2001). Agreeing with Pettijohn et al, Mejia et al (1990) also averred that "performance appraisalis a process of identifying and measuring people's performance in an organization". Several researchers have defined performance appraisal systems in different ways. According to Edwards and Pinnington (2000), performance appraisal is the formal means of setting, measuring and meeting performance expectations. Bennington & Baix (2005) also describes performance appraisal as a management concept from the west aimed to improve individual and organizational performance, he further elaborates that the structure put into place for measurement and assessment of employee performance in an organization is known as the Performance Appraisal System. There are various reasons for performance appraisal systems (Mount 1984). Such reasons may be for improvement purposes or in taking decisions about an employee. Mejia et al (2004) classifies appraisal systems into developmental; for training purposes or administrative linked to promotion or termination. It is believed to be for corrective reasons such as, coaching, promotions and pay rewards (Murphy and Murgulies 2004). They are aimed at continuous improvement, annual cull; reward high achievers and enable managers address performance without conflict (Redman and Wilkinson 2009). However, despite the clear aims of performance appraisal systems, there are a number of downsides in its implementation. Brumback (2003) is of the view that performance appraisal is traditionally done via ratings which frequently turn out to be biased. Organizations therefore need to work in hand with performance management to put things in place. Mejia et al (2004) notes that worker's morale may be lowered after appraisals and this can pose problems for peers and management, he advices some measures of performance management be adopted to resolve such issues. According to the CIPD (2010), there is no right way to carry out an appraisal. It argues that some organizations appraise employees individually, collectively, via customers, managers, and subordinates. Whatever type is used, it is expected that an effect will emerge on both the appraised and his organization as past researches have recognized that there is a gap amongst managers and employees in performance management theory and its practical (Bratton and Gold 1999). An overview of the above analysis leads us to support that Performance appraisal is carried out using various methods with varying effects. In conclusion, performance appraisal system was created to be an effective way of managing employee and employer performance through identification, evaluations and feedbacks to ensure performance development. An effective performance appraisal system helps both parties to identify their weaknesses and directs them on what needs to be done to improve. A number of errors have also been associated with performance appraisal systems. That is why Soltani et al (2001) in a survey by the Institute of Employment Studies, showed that despite the fact that performance appraisal is everywhere, it often fails both the employees and the organizations. This definition however stipulates that, it is difficult to relate performance appraisals to productivity. Woodburn (2004) acknowledges this in his work, "engaging marketing in performance management", noting that performance measurement is not easily associated to productivity. Still, there is a lot of shove on it thereby creating pressure on the workforce with little or no long term gain. Apart from the fact that Performance appraisal is time consuming and costly, it may also demoralize employees who feel they have not been appraised fairly therefore, leading to fall in performance.
Performance appraisal more significant to the organization or to the individual?
Performance appraisal is a most important component of the organization and therefore could be advantageous and important for both the organization and the employees. Importance of Performance Appraisals to the organization such as performance appraisal is an elementary feature of the human resources department's contribution to an organization, effective appraisal may not only dispose of conduct and work-quality problems but capable of encouraging an employee to contribute more, company will inquire its employees to carry out"360-degree feedback" that evaluates peers and subordinates, provide the employee with an opportunity to be of greater use to an organization, the employee feels pleased and valued and lighting the approach in the direction of a successful career pathway that encourages loyalty and steadiness. As jobs become more complicated, organizations must be dependent on teams to accomplish tasks. To evaluate job performance by teams, organizations introduce team performance appraisals that evaluate the performance of teamwork on organizational performance. Team performance appraisals can range from appreciation of individual performance and its contribution to group to only an assessment of the organization's performance. When only an organization's performance is evaluated, no individual appraisals are completed and individuals do not take delivery of performance ratings.
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Performance appraisal is not merely for appraisal but is for accomplishment and improvement of performance?
The comment or question is actually a bit repetitive because appraisal is about discussing accomplishments and areas of improvement. Often times the appraisal process is viewed by the appraisee as a negative or critical-only situation. This happens because the appraiser is ineffective or incompetent in the delivery process for various reasons including poor mentoring, poor judgement, personal beliefs, lack of adequate skill base in delivering appraisals, and potential personal dislike of the employee. The intent of the appraisal should be three-fold - 1) Praise the employee - let them know in what areas they are meeting or exceeding expectations of the job; 2) communicate areas of opportunity for the employee, i.e. areas they need to improve or where they aren't meeting expectations as compared to goals set and/or their job description; and 3) with the employee's input, set goals to for the employee to accomplish between now and the next appraisal. Absolutely nothing should be a surprise to the employee during the appraisal. The appraisal is NOT the time to bring up some new areas of opportunity for the employee. The employee should be made well aware of their opportunities throughout the course of the, i.e. year. The appraisal should be about 70% celebration of accomplishments and strengths, 5% recapping areas of opportunities or areas for improvement, and 25% goal setting for the upcoming review. If a company doesn't institute the practice of having the employee complete a self-appraisal prior to the formal appraisal, I highly advise this as it can lead to clearer lines of open communication and ideally, affirmation that the appraiser and appraisee are on the same page. I understand this is not practical in all corporate settings and job positions.
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