challenges Of Performance Appraisal: An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance

appraisal system effective and successful. The main Performance Appraisal challenges involved in the performance appraisal process are: Determining the evaluation criteria Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms Create a rating instrument The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization. Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively. Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator¶s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees. Halo effect occurs when a rater attaches too much significance to a single factor of performance and gives similar ratings on other performance elements. Thus overall evaluation is significantly influenced by a single factor. Such a perception undermines the importance of other elements and leads to an unbalanced performance assessment of the individual. Horn effect- The rater¶s bias is in the other direction, where one negative quality of the employee is being rated harshly. For example, the ratee rarely smiles, so he cannot get along with people! People differ in their tendency to evaluate people or performance. Some supervisors are very strict or conservative in their ratings and generally give low scores in their evaluations. This tendency may make high performers attain somewhat average ranking and average performers appear as poor performers. Raters with such tendency are known to have a strictness bias. On the other hand, some supervisors demonstrate a leniency bias and rate their subordinates very liberally which may make even average performers seem like star performers, attaining very high performance scores.

. consciously or unconsciously.And yet.the average. class or a phenomenon can lead to an unfair evaluation which is off from reality. while making everyday judgments about people. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her. Therefore. We all suffer from these shortcomings. attitudes. Resistance The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. preferences and lack of understanding about a person. things. experiences. Personal Bias-Personal beliefs. This rating error is known as the central tendency bias. the employees should be communicated and clearly explained the purpose as well the process of appraisal. assumptions. events etc. others "play safe" by rating around the golden mean . This may be done to avoid the necessity to justify scoring across the two extremes as some systems expect managers to specify additional comments as they give too high or too low ratings to employees.

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