Problems in Performance Appraisal

PROBLEMS IN PERFORMANCE APPRAISAL

1. Problems with leniency and strictness:

• The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently.
• Equally damaging one is assigning consistently low rates.

2. Problems with central tendency:

• Some raters appraise all the employees around the middle point of the rating scale and they avoid rating the people higher or lower level.
• They follow play safe policy because of answer ability to management or lack of knowledge about the job and person he is rating or least interest in his job.

3. Problems with personal prejudice:

If the rater dislikes any employee, he may rate them at the lower end and this may distort the rating purpose and affect the career of these employees.

4. Problems with halo effect:

• To minimizing the halo effect, you should appraise all the employees by one trait before going to rate on the basis of another trait.
• A person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well, even when such a rating is undeserved

5. Problems with recent performance effect:

In general, raters remember the recent appraisal of the employee and they usually follow appraisal results last time.

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