Performance appraisals is the
process of evaluation and development. A performance appraisal act
as a system to support the hiring, training and development and act
as the evidence for increase in the pay system or for
termination.
It is very important to conduct the
performance appraisal in a fair way. This can be done by
- Not comparing the performance of
two employees or with other employees. Instead manager should focus
on comparing the employees performances per company standard.
- Manager should not only focus on
highest performance but also evaluating employees based on his or
her behavior at workplace. A person may be a top performer but his
or her behavior towards other is unacceptable then there is no
point in rewarding that person.
- Manager should address the
employees' issues in advance and not during appraisal time. Thus
providing employees with the opportunities to improve their
performance before the actual appraisal would be fair and
acceptable.
- A written supportive statement is
very important for the employees' rating. A manager should create a
supportive evidence in writing to make the appraisal process
fair.
- Performance appraisal should not be
done on the basis of recent performance. Instead, it should cover
all aspects that is required for the appraisal and rating.
The five measurement errors in
performance appraisals are:-
- Stereotyping - This type of
error is a result of discrimination based on the person belonging
to a particular social group. The evaluation process gets
influenced by this and results in stereotyping bias.
- Similar - to - me errors -
This type of error occur when the manager gives more preference to
people who are in some or the other way similar to him or her based
on different dimensions. For example, the person who is from the
same state as that of the manager is given the higher rating.
- Attribution bias - When the
manager rate the employees based on his character, attitude or
other qualities then this result in attribution bias. They
generally relate the performance based on the internal motivation
factors of employees.
- Halo effects - When a manager
rate the employee based on his or her impression the manager has
perceived initially and evaluate the performance based on this then
it result in appraisal error.
- Leniency errors - This type
of error occurs when the manager gives rating to everyone either
too high or too low and it does not match with the actual
performance of the employees. This is done to maintain good
relation and avoid confrontation with employees who has been given
low rating.
Thus errors or biases in appraisal
process makes it difficult to differentiate between a good
performers, average performers and bad performers. Not rating the
employees correctly and genuinely will impact the employees morale
or make the employees carefree. Thus it is very important to
evaluate the employees accurately.