What are the common errors that supervisors make while appraising their subordinates?
Managers commit mistakes while evaluating employees and their performance. Biases and judgment errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate distortion of a measurement. These are: Show
Therefore while appraising performances, all the above biases should be avoidd. Related ArticlesView All Articles Organizational performance and its resultant efficiency and effectiveness can only be achieved when individuals are continuously appraised and evaluated. The inability of an organization to install an effective performance appraisal strategy has hindered them from achieving a competitive advantage which they require more now than ever before (Obisi, 2011). Appraisal processes are not systematic and regular and are often characterized by personal influences occasioned by the organization's preoccupation to use a confidential appraisal system which hinders objectivity and fairness. Often organizations ignore management by objectives, critical incidents to personal prejudices. This is retrogressive as it affects the overall performance of the individual. 360 degrees appraisal method whereby superiors and to appraise their subordinates, subordinates appraise their superior and the appraisee appraise himself or herself and the average of all the appraisal taken to arrive at the final appraisal outcome should be now be considered by organizations (Obisi, 2011). Performance appraisal definedPerformance appraisal is also known as employee evaluation, merit rating, employee assessment, etc. It is a systematic process of appraising an employee’s current and past performance relative to his/her performance parameters (Bhullar, 2018). The employee’s performance should be based on organizational expectations and the employee’s actual performance (Bhullar, 2018). The idea that performance evaluation improves employee’s performance is not a new one but it is seen in the roots of the development of humankind. Each person is motivated when he is told about his actual performance and accepts what were his/her previous mistakes. The performance appraisal process may be held annually or monthly as needed. Flippo (1976) defines performance appraisal as, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters about his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period and planning for his future. Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, to identify weaknesses and strengths as well as opportunities for improvement and skills development. Concept of performance appraisalVirtually all organizations have some sort of means of appraising their employees. Performance Appraisal is one of the oldest, natural, and most universal practices of Management (Bhullar, 2018). The basic purpose of performance appraisal is to ascertain the behavior of an employee anchored to performance and integrate with the organizational performance. It helps both the employers and employees to understand the responsibility in the organization. The performance appraisal system is focused to integrate the expectations i.e., performance, which gives total clarity between the appraiser and appraisee (Bhullar, 2018). It is an instrument to create a conducive atmosphere in the organization. The purpose of any management is to build a very competitive and congenial work culture, which builds healthy competition, gives a sense of achievement to the employees and the stakeholders. A performance appraisal system is a right instrument that plays a vital role directly or indirectly in achieving the above. It improves the interpersonal relationship among the employees and employers in the organization. It reflects an evaluative judgment of the traits, characteristics, and work performance of the employees on jobs (Bhullar, 2018). It is a continuous process to reach the desirous goal of not only the organization but also the employees. According to Levinson (1996), Performance Appraisal has three functions:
Types of appraisalTruly speaking, there are three types of appraisal. These include a confidential or secret appraisal, open appraisal and we also have semi-open and semi-secret. However, Mamoria (1995) and Ryars and Rue (1979) identified two types of appraisal, confidential and open appraisal. 1. Confidential AppraisalIn confidential appraisal, Murthy (1989) writes that the individual is not involved in the appraisal exercise as the appraisal outcome is not at all communicated to the person being appraised. In essence, the person’s strengths and weaknesses are not communicated to him or her. Obisi (1996) adds that some managers and supervisors involved in performance appraisal ignore periodic counseling after an incident has taken place. 2. Open AppraisalThe open appraisal system reveals to the appraisee his or her strengths and weaknesses, his contributions, and failures which are discussed with him or her during a performance counseling interview. Mukundan (1989) writes that an open appraisal method would reveal and create self-awareness, which is a process of giving insight into one’s performance. It helps the employee become more reflective and objective about himself and future planning, which establishes an action plan for the coming year in terms of fixing targets, activities, responsibilities, etc. It also makes the employee aware of his key performance areas and the contribution that he is making to the organization. 3. Semi-Open and Semi Secret AppraisalThis is an appraisal process whereby the performance appraisal procedure would be made open at the beginning and later made secret. For instance, if an appraiser is asked to fill an appraisal form and the superior rates the subordinate and returns his rating to the subordinate to sign and after signing, the subordinate would not hear anything again about his final performance outcome. In some cases, the subordinate would be given the form to fill and after filling and returning the form, the subordinate receives no further communication. Objectives of performance appraisalIn the words of Cummings as quoted by Bhullar (2018), “the overall objective of performance appraisal is to improve the efficiency of an enterprise by attempting to mobilize the best possible efforts from individuals employed in it. Such appraisals achieve four objectives including the salary reviews, the development, and training of individuals, planning job rotation, and assistance promotions.” The major objectives of performance appraisal are summarised below:
Constituents of performance appraisalThe followings are the main constituents of performance appraisal:
To achieve these objectives, managers must ensure that the written down performance standards are:
Methods of performance appraisal systemOne can classify the methods of performance appraisal under two categories-vis-à-vis, traditional and modern methods. Each method has been listed below: 1. Traditional methodThe followings are the main traditional methods:
2. Modern Methods (New concepts)
The positive result of performance appraisalThe following are some of the main positive results of performance appraisal:
Negative results of performance appraisalThe following are some of the main negative results of performance appraisal:
Performance appraisal failurePerformance management systems, which typically include performance appraisal and employee development, are the “Achilles’ heel” of human resources management (Pulakos, 2004). They suffer flaws in many organizations, with employees and managers regularly bemoaning their ineffectiveness. A survey by Watson Wyatt (2004) showed that only three out of 10 workers agree that their company’s performance management system helps improve performance. Less than 40 percent of employees said their systems established clear performance goals, generated honest feedback, or used technology to streamline the process. While these results suggest that there may be poorly designed performance management systems in many organizations, it is typically not poorly developed tools and processes that cause difficulties with performance management. Rather, difficulties arise because, at its core, performance management is a highly personal and often threatening process for both managers and employees (Pulakos, 2004). Reasons why performance appraisals failResearch and case studies done by various institutes organizations & firms, reveals the following as some of the key reasons for the failure of performance appraisal systems in many organizations: 1. Manager’s judgment or assessment based on preferencesMany times, performance managers provide their personal views, judgments, and more opinion other than the performance appraisal parameters (HR Help Board, 2020). They keep their biased view upfront of measure and analyzing employee performance against the assigned goals and objectives. They show less interest in the performance appraisals system and belief in their method of performance judgments 2. Unstructured methods of performance appraisal systemsMany organizations do not set the parameters for measuring the performance levels of employees (HR Help Board, 2020). Performance managers include “primary result areas” in the performance appraisal system, but do not include “primary performance indicators” which result in the qualitative appraisal system instead of quantities appraisal. So this approach involves lots of manager’s perceptions, views likes or dislikes, and personal side favors. Such appraisal processes also lack the feedback system between employees and managers. 3. Lack of interest and ownership of managerThe performance appraisal process is long and time-consuming (HR Help Board, 2020). This process involves lots of talks discussion, feedback, and designing techniques of managers. Most of the time managers do not show much engagement and interest in designing and developing the performance standards and set goals for their team members objectively (HR Help Board, 2020). In other words, instead of a collaborative approach of the human resources department, function/ department head, and reporting manager, whereas it becomes a coordinating approach for executing this activity in a few organizations. 4. Lack of a proper channel of communicationIn many organizations, managers avoid giving direct acknowledgment to employees on their performances (HR Help Board, 2020). They resist and close the channel of exchanging feedbacks with their subordinates. 5. Lack of reward and recognition policyIn many organizations, management avoids giving rewards and recognition to the employee performer in view to avoid any business or unrest among other team members (O’Reilly, 2020). 6. Lack of leadershipImplementation performance appraisal system in an organization is the responsibility of organization management and its supervisor/managers respectively. In the lack of proper leadership, supervision, and communication channels network system, an organization loses its objectivity for employees( O’Reilly, 2020). Performance appraisal is a continuous process that approaches from top-level to bottom in an organization. 7. Lack of designing, monitoring, and measuring the performance appraisal standardsPerformance appraisal is a continuous process that should be developed, designed, and monitored by managers for successful implementation (O’Reilly, 2020). In the absence of such practices, it is difficult to collect information, measure, analyze, and use it for the decision-making process. As a result, employees felt demotivated and lost their confidence in this system (O’Reilly, 2020). 8. Goals aren’t in the pictureIn many organizations, employee goals aren’t in the picture when the performance review process is carried out (O’Reilly, 2020). Sometimes performance management also fails because wrong goals are chosen to optimize the performance of the employees. In short, goals are important to keep employees motivated and perform better. 9. Lack of communicationSometimes, managers aren’t able to communicate what they expect from their employees. They need to communicate properly with the employees about the benefits of performance management (O’Reilly, 2020). Employees should be provided with the necessary resources to improve themselves constantly and should know the importance of continuous learning and a performance management system. 10. Overemphasizing recent performancesThis is one of the most common mistakes that managers/ HRs make. Performance management processes are plagued with various biases in general. Recency bias is one of them. This is an unconscious bias since part of the problem can be attributed to memory and the way the mind makes associations. But it is a dangerous bias all the same. Very simply, it is because recency bias can make or break a performance review. So overemphasizing recent performance can fail the performance management system. 11. Annual performance evaluationPerformance evaluation is valuable only when it is carried out regularly. An annual performance review is not enough for any organization. Some managers claim that it consumes a major portion of their time. But if performance evaluation is carried out annually, employees have to wait for a year to give or receive feedback; which is not good for the organization’s productivity. 12. No recognition/ rewardsAppreciation and recognition are very important to keep your employees inspired and to drive productivity (O’Reilly, 2020). A performance management system that doesn’t include recognition and rewards for employee performance tends to fail more easily. It is important to keep track of employee performance and appreciate their good work (O’Reilly, 2020). 13. Potential rating scale appraisal problemsPotential rating scale appraisal problems can include the following and these can impact negatively on performance appraisal and cause it to be a failure.
ConclusionIn most cases, it has been found out that in organizations performance appraisal systems defeat the purpose of achieving their intended purposes and objectives. There may be numerous causes of such failure, but mostly it occurs as the top management fails to share information and extend support. These failures of performance appraisal can be attributed to ambiguous performance standards, rater bias, lengthy process of form filling and documenting, and wrong selection of performance criteria. At times, the appraisal process itself may be conflicting. A reward-aligned performance appraisal may conflict with administrative and developmental needs. Milton Jack is a Business Consultant at Industrial Psychology Consultants (Pvt) Ltd, a business management and human resources consulting firm. LinkedIn:linkedin.com/in/milton-jack-9798b966 Phone: +263 242 481946-48/481950 Mobile: +263 774 730 913 Email: [email protected] Main Website:www.ipcconsultants.com What are the most common errors in performance appraisal?It is possible to identify several common sources of error in performance appraisal systems. These include: (1) central tendency error, (2) strictness or leniency error, (3) halo effect, (4) recency error, and (5) personal biases.
What are the 4 factors that affect employee appraisals?Factors to consider for performance appraisals. Punctuality. Punctuality refers to the degree to which an employee is on-time for work. ... . Accountability. ... . Quality of work. ... . Quantity of work. ... . Time management. ... . Teamwork. ... . Reliability. ... . Communication abilities.. What are four types of common rating errors?Four of the more common rating errors are strictness or leniency, central tendency, halo effect, and recency of events (Deblieux, 2003; Rothwell, 2012). Some supervisors tend to rate all their subordinates consistently low or high. These are referred to as strictness and leniency errors.
What are 3 types of rater errors?Researchers have classified rater errors into many types, according to their causes and rating patterns. The four most studied rater errors are: (1) leniency, (2) inconsistency, (3) halo, and (4) restriction of range.
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