Pros And Cons Of Performance Appraisal

Cons of Performance Appraisal Systems Along with the many advantages of performance appraisal systems, it all comes down to whether or not they are being implemented effectively and whether or not they are beneficial for the organization as well as the employee. A huge disadvantage of performance appraisals is that traditionally when conducted, they only involve the manager’s view of his or her subordinate’s performance. In many organizations, managers have a lot of responsibilities including not only overseeing his or her subordinates but they often have to report to their supervisor as well, which could lead to a limited amount of time actually observing their employees in action (Gluck, 2012). Another huge drawback to performance appraisals …show more content…
Managers often forget to drop their biases off at the door before conducting a performance appraisal; managers sometimes bring their own biases and personal notions to the appraisal process, which is extremely unfair. Bias can typically skew any type of performance appraisal system, manager-based as well as peer review-based appraisals, which can cause employees to lose faith in the system and perceive them rightfully so as unreliable measures of performance. To work suitably, employees must see these systems and fair and impartial (Gluck, 2012). Along with appraiser bias, appraisers are human and they are subject to make errors as well, which will also lead to employees losing faith in the appraisal system as well as the possibility of leaving employees feeling stressed and distraught (Lotich, 2014). Other disadvantages of performance appraisals widely talked about include: they can create an extremely stressful atmosphere for everyone involved, they can be overwhelming for both the manager conducting the appraisal as well as the employee being appraised, poor performance and issues in the workplace should be addressed immediately to ensure they are corrected rather than waiting until the end of the year or for the next performance appraisal, and many more (Bersin, …show more content…
To develop a valuable performance appraisal system, the quality of the rating form is essential for success. In most organization, managers rate employee job performance on a standardized form, but to be effective the form must be relevant to the job or position and the rating standards must be clear (Kleiman, 2009, p. 226). Another key to implementing an effective appraisal system is clearly communicating performance standards. In communicating such standards, they should be clearly defined in order to guarantee the employee knows what is expected of them. Accuracy of the ratings is also an extremely important aspect of developing and implementing an effective performance appraisal system. If the results of an appraisal are inaccurate, many consequences can arise, for example they would be difficult to justify if legally challenged and employees will lose their trust in the system (Biron, Farndale & Paauwe,