Question

Define performance appraisal. Briefly explain the pros and cons of staff appraisal of subordinates by their superiors. 

Answer 1

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.

PROS:
They provide a document of employee performance over a specific period of time.

• They provide a structure where a manager can meet and discuss performance with an employee.
• They allow a manager the opportunity to provide the employee with feedback about their performance and discuss how well the employee goals were accomplished.
• They provide a structured process for an employee to clarify expectations and discuss issues with their manager.
• They provide a structure for thinking through and planning the upcoming year and developing employee goals.
• They can motivate employees if supported by a good merit increase and compensation system.

CONS:

• If not done right, they can create a negative experience.
• Performance appraisals are very time consuming and can be overwhelming to managers with many employees.
• They are based on human assessment and are subject to rater errors and biases.
• It can be a waste of time if not done appropriately.
• They can create a very stressful environment for everyone involved.