Question

When does performance appraisal become a strong source of stress for employees?

Options

• When it is transparent and fair.

• When it is done regularly with feedback.

• When it is perceived as unfair, biased, or arbitrary.

• When employees know their rating in advance.

Answer 1

When it is perceived as unfair, biased, or arbitrary.

Explanation:

An unfair, biased, or arbitrary appraisal creates fear about promotion, increments, and bonuses, leading to high stress.