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Human Resource Management:
Problems in Performance Appraisal                                                Bookmark and Share

Many performance appraisal methods have been severely criticized. Many of the problems commonly mentioned are not inherent in the method but, rather, reflect improper usage.

a.       Lack of Objectivity: - A potential weakness of traditional methods of performance appraisal is that they lack objectivity. Some subjectivity will always exist in appraisal methods. However, the use of job-related factors does increase objectivity.

b.       Halo Error:-Occurs when the evaluator perceives one factor as being of paramount importance and gives a good or bad overall rating to an employee based on this factor.

c.        Leniency/Strictness:-The giving of undeserved high or low ratings.

d.       Central Tendency:-Occurs when employees are incorrectly rated near the average or middle of the scale.

e.       Recent Behavior Bias:-It is only natural to remember recent behavior more clearly than actions from the more distant past. However, performance appraisals generally cover a specified period of time, and an individual’s performance should be considered for the entire period.

f.         Personal Bias:-Supervisors doing performance appraisals may have biases related to their employees’ personal characteristics such as race, religion, gender, disability, or age group.

g.       Manipulating the Evaluation:-In some instances, supervisors control virtually every aspect of the appraisal process and are therefore in a position to manipulate the system.


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