Question.2)What are the problems usually encountered in
the Performance Appraisal in organisations? How are and whether these problems
taken care of at the ground level reality in organisational set up? Critically
examine and substantiate your answers with examples you are familiar with.
Briefly explain the situation, you are referring to.
Ans :
problems usually
encountered in the Performance Appraisal in organisations are:
Problems With Performance Appraisals: Where
Do Managers Go Wrong?
Managers go wrong with performance appraisals
in so many ways, it’s difficult to identify all of them. Here are four big
problems managers and employees experience with performance appraisals.
Performance Appraisals Are Annual
Start with the fact that performance
appraisals are usually annual. Employees need feedback and goal planning much
more frequently than annually. Employees need weekly, even daily, performance
feedback to keep them focused on their most important goals, to provide them
developmental coaching to help them increase their ability to contribute, and
to recognize them for their contributions.
Managers, who don't know any better, make
performance appraisals into a one-way lecture about how the employee did well
this year and how the employee can improve. Once a manager tells an employee
about problems with their work or a failure in their performance, employees
tend to “not hear” anything else the manager has to say that is positive about
their performance. So, it’s a combination problem. The best performance
appraisals are a two-way discussion and focus on the employee assessing his or
her own performance and setting his or her own goals for improvement.
Performance appraisals rarely focus on
developing the employee’s skills and abilities with commitments from the
organization about how they will be encouraged to develop their skills in areas
of interest to the employee.
Performance appraisals are usually connected
with the amount of pay raise an employee will receive. Don’t ever expect an
honest discussion about improving performance if the outcome is the employee’s
income. Let your employees know that raises will be based on a wide range of
factors – and tell them what the factors are.
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.
Other factors that are considered as problems
are
· Failure of the superiors in conducting
performance appraisal and post performance appraisal interview.
· Most part of the appraisal is based on
subjectivity.
· Less reliability and validity of the
performance appraisal techniques.
· Negative ratings affect interpersonal
relations and industrial relations system.
· Influence of external environmental factors
and uncontrollable internal factors.
· Feedback and post appraisal interview may
have a setback on production.
· Management emphasizes on punishment rather
than development of an employee in performance appraisal.
· Some ratings particularly about the potential
appraisal are purely based on guess work.
The other problems of performance appraisal
reported by various studies are:
Relationship
between appraisal rates and performances after promotions was not significant.
Some
superiors completed appraisal reports within a few minutes.
Absence
of inter-rater reliability.
The
situation was unpleasant in feedback interview.
Superiors
lack that tact of offering the suggestions constructively to subordinates.
Supervisors
were often confused due to too many objectives of performance appraisal.
Advantages
of Performance Appraisal through Computers:
There
will be an objective analysis of traits of both the superior and subordinate
and a chance to subordinate to express
his views even after performance appraisal.
An
employee shall express his emotional needs and his value system which may not
be
possible
direct face to face with superior. Communication through computer overcomes the
communication barrier between the
superior and subordinate.
Computer
based appraisal will remove the inherent weakness of the appraisal system that
is
subjective
assessment of vague and abstract performance targets, unclear guidelines for
appraisal
etc.
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