In: Operations Management
If your objective is to minimize the effects of rater biases, what type of appraisal system would you design?
Rater bias is a serious issue in performance appraisal, and it must be reduced or removed to make the appraisal more effective and provide accurate results in the form of feedback to the employees. When Appraisal is free from bias or any error, right decisions can be taken for promotion, recruitment, and other areas. Bias of the rater could demotivate some employees, and encourage favouritism, that affects the morale and encourage counterproductive behaviour.
If one aims to reduce or minimise rater bias he needs to use 360 degree performance appraisal system. Which allows the seniors, subordinates, customers and other relevant members to rate the performance of each employee. This needs to be implemented with a well designed and computers aided system, that consider relevant activities to be assessed, in association with the employees work. Direct customers feedback or ratings can really help to get true performance of the members, and seniors, peers can provide their ratings based on the work as well as the behaviours. Thus, there will be little room for bias, favouritism, stereotyping, or any other errors.
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