Question

“The system of performance appraisal of an employee is always subjective.” Comment.

Answer 1

Performance appraisal refers to the process where an employee's job performance is assessed by either an individual or a group. Since this involves one person evaluating another, it is difficult to keep the judgment completely objective. There is always a chance of personal opinions or bias affecting the outcome. To reduce such subjectivity, some structured systems have been introduced. One such method is the 360-degree appraisal system. In this approach, the employee’s performance is reviewed by five different sources. The average of four of these evaluations is used to determine the final rating or rank of the employee.