Question

• Reasons for performance appraisals

• Pitfalls in performance appraisals (intentional and unintentional inaccuracies in appraisals)

• Methods and instruments for appraisals

Answer 1

The performance review, which is otherwise called a performance appraisal  is a method by which the job performance of an employee is documented and evaluated.

Reasons why performance appraisal should be carried out are:

• It allows the management personnel for establishing guidelines for compensation increases.
• Helps in tracking employee potential, strengths and weaknesses.
• Helps in identifying the best potential candidates for promotion.
• It provides feedback for improvements.
• It  promote employee through training programs.

Common pitfalls in performance appraisals

1. Managers aren’t trained or prepared.

Many managers are not trained and they lack knowledge about how to properly conduct a performance review so they don't know how to plan for and deliver an effective review.

2. Managers don't evaluate employees accurately.

Managers may make certain unconscious rating errors while preparing and delivering a performance review. One of the most common errors is the "recency effect," where managers may base their opinions on the most recent performance of an employee rather than their performance throughout the year. Other rating errors that managers more frequently make in the performance review process include:

• Contrast effect
• Central tendency bias
• Personal bias

3. Managers are too vague.

Many managers tend to use vague language during the performance review like: "You're doing a good job" or "You could do better," instead of citing specifics in terms of what the employee did well or not well in terms of their performance. Without knowing the specifics, the employee cannot improve his performance

4.Managers aren't supported by solid processes and systems.

The strong performance management systems are the foundation for delivering a good performance review. Without an accurate way of measuring performance, a clear process, and methods that make delivering a performance review easy, managers have to work within defective and the inefficient systems.

Methods of measuring performance appraisal

• Ranking method
• Paired comparison
• Grading
• Checklist method
• Confidential report
• 360 degree appraisal
• Behaviorally anchored rating scale
• Field review method

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