Question

Discuss the limitations of performance appraisal.

Explain two limitations of performance appraisal.

Answer 1

1. Bias of Appraiser: The ‘Halo Effect’ in employee evaluations is the method's main weakness. Favored employees receive higher ratings, whereas unfriendly staff receive lower ratings.
2. Ambiguity in Standards: Supervisors may apply inconsistent standards to different employees if the rules are unclear.
3. Insufficient Evidence: Impressing the supervisor can lead to a positive review, even if the employee's impression of their department is negative. In some cases, a performance appraisal is unnecessary.
4. Several Qualities Remain Without Appraisal: Performance appraisals can only measure a limited range of employee traits. Everyone has unique backgrounds, values, and behaviors.
5. Leniency or Strictness Tenancy: Each evaluator has a unique valuation technique that serves as their evaluation standard. For example, some teachers are strict in the evaluation of answer books, whereas others are lenient. The lenient tendency is known as a ‘Positive Leniency Error’, whereas the strict tendency is called a ‘Negative Leniency Error’.
6. Average Rating Problem: Top managers must justify their ratings, whether they are extremely low or high. The most prevalent blunder in performance appraisal is assigning an average rating to all employees. Furthermore, a low ranking offends the subordinates.
7. Influence of Man's Job: High-paying jobs are more likely to receive high ratings. So a senior employee may receive a higher rating than a junior employee.