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Problems of performance appraisal

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Problems of performance appraisal

  1. 1. Problems of performance appraisal In this file, you can ref useful information about problems of performance appraisal such as problems of performance appraisal methods, problems of performance appraisal tips, problems of performance appraisal forms, problems of performance appraisal phrases … If you need more assistant for problems of performance appraisal, please leave your comment at the end of file. Other useful material for you: • performanceappraisal123.com/1125-free-performance-review-phrases • performanceappraisal123.com/free-28-performance-appraisal-forms • performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal I. Contents of getting problems of performance appraisal ================== Performance appraisal is important for organizations and employees. Unfortunately, performance appraisals are not on the top of the list of "favorite things to do" for either managers or employees, and there can be a number of problems with their administration. From managers not being trained to conduct performance appraisals effectively to the failure to tie performance appraisal expectations to desired business results, businesses are often challenged to use this tool effectively. Poorly Trained Managers Effective performance appraisal doesn't just happen and organizations shouldn't assume that managers know how to conduct them effectively, even if they have many years of experience as managers. In fact, since the process can differ from organization to organization, it is important that training is provided to introduce managers to the philosophy of performance appraisal at the organization, including a review of the forms, the rating system and how the data gathered is used. Training should take place regularly as a refresher both for new and veteran managers. Inconsistent Ratings Inter-rater reliability is generally very low between managers at any organization. What one manager considers to be "acceptable" performance, another may consider "not meeting expectations." This can be a challenge for any organization and is made more of a challenge in situations where the criteria used are subjective and not based on any measurable performance outcomes.
  2. 2. Lack of Outcome-Based Measures Performance appraisals that ask managers to rate employees on subjective criteria such as "customer service skills" or "leadership ability" lack specific outcomes that can be tied to measurable results. The best performance appraisals provide the ability for both managers and employees to judge performance based on measurable outcomes that are objective; level of sales, safety records and evaluations from customers are all meaurable ways of providing insight into an employee's performance. Not Used for Performance Improvement The purpose of performance appraisal is not only to provide input to employees about how they're doing, but also to provide the organization with an indication of areas of employee strength and opportunities for improvement. Unfortunately, few companies actually aggregate and use the results of performance appraisal for performance improvement efforts. By analyzing results and taking advantage of both best practices in areas where employees are performing well and opportunities for improvement in areas where they're not, organizations can receive maximum value from their performance appraisal efforts. ================== III. Performance appraisal methods 1.Ranking Method The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group. Advantages of Ranking Method i. Employees are ranked according to their performance levels. ii. It is easier to rank the best and the worst employee. Limitations of Ranking Method i. The “whole man” is compared with another “whole man” in this method. In practice, it is very difficult to compare individuals possessing various individual traits. ii. This method speaks only of the position where an
  3. 3. employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. iii. When a large number of employees are working, ranking of individuals become a difficult issue. iv. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements. 2. Rating Scale Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages – Rater’s biases 3. Checklist method Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Advantages – economy, ease of administration, limited training required, standardization. Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings
  4. 4. 4. Critical Incidents Method The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages – Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may appear to be punishment. 5. Essay Method In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promoteability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters. 6. Behaviorally Anchored Rating Scales statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages – helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating techniques.
  5. 5. III. Other topics related to Problems of performance appraisal (pdf download) • Top 28 performance appraisal forms • performance appraisal comments • 11 performance appraisal methods • 25 performance appraisal examples • performance appraisal phrases • performance appraisal process • performance appraisal template • performance appraisal system • performance appraisal answers • performance appraisal questions • performance appraisal techniques • performance appraisal format • performance appraisal templates • performance appraisal questionnaire • performance appraisal software • performance appraisal tools • performance appraisal interview • performance appraisal phrases examples • performance appraisal objectives • performance appraisal policy • performance appraisal letter • performance appraisal types • performance appraisal quotes • performance appraisal articles