LIMITATIONS OF PERFORMANCE APPRAISAL


LIMITATIONS OF PERFORMANCE APPRAISAL?


Meaning: - Performance appraisal is a process of evaluating work performance of employees. The purpose of appraisal is to individual and organizational effectiveness.


Definition: - “Performance appraisal is the systematic description of an employee’s job relevant strengths and weaknesses.”
                                                                                        Defined be …………… (Wayne Cascio)

LIMITATIONS OF PERFORMANCE APPRAISAL


1.       Halo Effect: - The Performance appraisal may be based on the positive factor of the ratee. Several work related factors may not be considered for evaluation.
For example: - if the ratee is found to be highly punctual in reporting to duty, he may be also given higher scores for quality of work, discipline, etc., without conducting appraisal of such factors.


2.       Horn Effect: - The Performance appraisal may be based on one negative factor of the ratee. The rater not evaluates several other job relevant factors.
For example: - the ratee may frequently report late to work and therefore, the rater may give him low scores for quality of performance, speed of work, etc., without conducting appraisal of such factor.


3.       Central Tendency: -some raters may follow central tendency approach. Average scores are given to all rates. Those who perform well are given average scores and those who do not perform well are also given average scores. Usually central tendency is caused by lack of information.


4.       Cost Factor: - Performance appraisal is an expensive activity. At times, experts may be appointed to conduct Performance appraisal. Therefore, the organization may have to pay good amount of fees to performance raters.

5.       Problem of Leniency (mercy): - some raters are very lenient in their appraisal. They give high scores to everyone, irrespective of their performance. Those who perform well are given high scores and those who do not perform well are also giving high scores.


6.       Latest Behavior effect: -Rating is influenced by the most recent behavior ignoring the commonly demonstrated behavior during the entire appraisal period. If the latest behavior is good, the ratee will get high scores and vice-versa.


7.       Problem of Strictness: - Some raters are strict in their appraisal. They tend to give low scores to all the rates irrespective of their performance. Those who perform well are given lower scores and those who do not perform well are also given lower scores.

8.       Spillover (overflow) Effect: - In this case, the present Performance appraisal is greatly influenced by past performance. “A person who has not done good work in the past is considered to be bad at work in the present as well.”


9.       Fear of confrontation: - Sometimes, supervisors tend to give above average rating to below average performers, so as to avoid confrontation.


10.    Fear of Spoiling Relations: - Performance appraisal may also affect superior-subordinate relations. As appraisal makes the superior more of a judge rather a coach, the subordinate may look upon the superior with a feeling of suspicion and mistrust.

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