Issues of Performance Appraisals

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Performance appraisal refers to the process, where in, an organization measures the performance of its employees against the performance or productivity standards set by it. For instance, an organization might review employees on the basis of the number of projects completed, goals achieved or sales targets met. Therefore, performance standards of one organization might be different from those of another. This further pinpoints the importance of performance appraisals in truly reflecting and impartially evaluating the performance of employees. A good performance appraisal will motivate employees and point out problematic areas.

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Whereas, a bad performance appraisal will be a waste of resources for any organization. Issues and Solutions Many organizations have trouble identifying the key areas that a performance appraisal has to address. They do not know, what they are trying to accomplish through a performance appraisal or how it will help them in employee evaluation. This can be established using the example of 360-degree feedback. “Typical mistakes organizations make are rushing into 360-degree appraisals without a clear idea of what they want them to achieve.

” (McCurry P. (1999). New angle on 360-degree feedback.

Director, 53, p. 36) Furthermore, organizations tend to use one particular tool in isolation, which does not yield reliable results. This should not be put into practice because one tool may not satisfy all the requirements of appraising. Moreover, appraisals need to take into account a comprehensive picture of performance. Using one particular tool can create a pigeon-hole view of what otherwise needed to be a holistic view of performance appraising.

Ideally, an organization should know exactly what each tool can deliver, and use a combination of tools to assess different competencies.

Organizations must assess pros and cons of different tools and handpick tools that suit their needs. Some tools that can be used are graphic rating scale, Behaviorally Anchored Rating Scales, alternation ranking, forced distribution method, critical incident method, management by objectives and 360-degree feedback. (cited in Dessler, 2006). Some organizations might use certain tools of conducting performance appraisals just because they are being followed in the industry. This again produces a serious loop hole in the entire process of conducting performance appraisals. Every organization has its own structure, and culture that defines it.

Although industry best practices might exist even for performance appraisals, however, the same tool is not necessarily applicable to all organizations. For instance, Andrew Forrest implies; if an organization’s culture is characterized by bureaucratic hierarchies, and does not foster communication, then conducting a 360-degree feedback will be pointless in such an organization. (cited in McCurry P. (1999). New angle on 360-degree feedback. Director, 53, p. 36). Some tools of performance appraising may become obsolete with relevance to an employee or employees because the on job environment of the employee changes.

The problem remains that same job dynamics do not hold true for an employee, and so the employee can not be evaluated on former standards. In such a scenario performance appraisers need to consider the exact dynamics of the job of the employee and then undertake evaluation. This solution serves the interest of the both the organization and the employee. As mentioned by Candy Albertsson, . “An individual may have a different boss or team one year or be doing different work, which can make findings hard to compare”. (cited in McCurry P. (1999). New angle on 360-degree feedback. Director, 53, p. 36).

One of the most important issues pertaining to performance appraisals is the degree of its objectivity. Employees certainly do not want to be unfairly evaluated because that effects the rewards or compensations tied to their performance. To ensure objectivity and fairness, Gail Dutton recommends software based performance appraisals. “software-based performance-appraisals tend to focus on results and actions rather than personality traits, employees are more likely to view them as fair”. (Dutton G. (2001). Making reviews more efficient and fair. Workforce,80, p. 76).

Other methods of ensuring impartial appraisals are using multiple evaluators for the appraisal process as this increases the probability of attaining more accurate information. This is because if more than one appraiser is used the chances of errors stemming from biasness, halo effect or central tendency can be reduced. Halo effect, biasness, and central tendencies are inherent problems of the appraising process that are related to the appraiser. Halo effect occurs when “the influence of a rater’s general impression on ratings of specific ratee qualities” (cited in G. Dessler, 2006).

Biasness comes from the impartiality of the appraiser where the appraiser might hold something against some employee. For example, a supervisor may have a personal dislike of an employee that may affect the appraisal process. Whereas, central tendency is defined as “ a tendency to rate all employees the same way, such as rating them all average”. (Dessler, 2006, p. 328). Therefore, using more than one appraiser can truly raise the accuracy of an appraisal. In addition, appraisers should be asked to appraise only those areas in which they have expertise because they will be able to precisely evaluate the areas they specialize in.

Another method to increase accuracy and objectivity of appraisal is to train evaluators. Provided that evaluators are better trained they will have a clear understanding or standards and will make better decisions. (Robbins S. P. , Judge T. A. ,2007, 625). Another issue that stems from the use of software based performance appraisals is that they can contain a set of generic questions that are not suited for the jobs that are being evaluated. (Dutton G. (2001). Making reviews more efficient and fair. Workforce,80, p. 76). To overcome this issue organizations need to tailor their software to their performance evaluation needs.

In order to process a fair evaluation, the questions need to be customized to the jobs that are being evaluated. Not only should it be customized to the jobs, but also to the performance standards the job entails. Doing so organizations can address this particular issue effectively. Some organizations might favor software or computer based performance appraisals because it increases efficiency of operation. It should be noted that incorporating software based performance appraisals just for speeding up the appraising process will do no good to the organization.

It might help the organization effectively utilize resources, for example, time savings, and less use of paper. Nonetheless, appraisal just for the sake of appraisal should not be the prime concern of any organization. Rather even the software based appraising process should be used to support the true meaning of carrying out performance appraisals. To make the appraising process effective organizations should incorporate supportive techniques into their performance evaluations. They should use interviews as well as other tools because in my opinion no tool can undermine the importance of face to face communications.

Although the software based performance appraising methods are useful, however, a combined approach of using different tools can give more accurate results. The human touch should not be totally eliminated from the appraising process.

References

Dessler G. (2006). Human Resource Management. Florida: Prentice Hall
Dutton G. (2001). Making reviews more efficient and fair. Workforce,80, p. 76-81.
McCurry P. (1999). New angle on 360-degree feedback. Director, 53, p. 36.
Robbins S. P. , Judge T. A. (2007). Organizational Behavior. New Jersey: Prentice Hall