Performance Appraisals: Identifying Problems and offering Solutions

Performance Appraisals: Identifying problems and offering solutions

The performance appraisal is one of the most important tools an employer has at their disposal. If the process is performed properly by trained appraisers it can be beneficial to both the employee and the company. When carried out properly it can help lead employees in realizing their potential as it relates to company objectives. When done improperly it can lead to discord and reduced morale within the workplace. Without a carefully structured system of appraisal the process can become one of judgment rather then encouragement.

Here are a few problems relating to improper administration of performance appraisals.

1. If the appraisal format is solely linked to material outcomes little consideration is given to the development of the employee. There is no room for creative interaction between the employee and employer. The important task of setting goals to meet company objectives becomes over-shadowed by the concern for material advancement. If the budget of the company is tight it could lead to an improper negative slant on the review itself. The company would feel compelled to down-play the performance of the employee in order to justify the lack of a raise.

2. People are unique and vary in their levels of motivation, and performance. They come with different work ethics, and values. If two people with the same qualifications are paid the same but have vastly different levels of motivation is it fair to pay them the same?

3. The traditional review is mainly concerned with past performance generally given only once a year. An employee may have made a mistake several months ago but corrected his or her behavior. Would it be fair to judge him based on the past when his current performance had vastly improved?

Performance Appraisals: Identifying problems and offering solutions

4. The using of quotas could have a detrimental affect on the review process. If employees are thrown in to a category without regard to individuality the company becomes mediocre. In his mind the worker has little incentive to work harder.

5. Employees may be judged on the basis of how they look rather than on their abilities and talents. It has been shown in studies that good looking people tend to be perceived more positively in the business world when compared to average looking people.

So what can be done given all that appears to be wrong with the present appraisal process?

1. The employer and employee should meet more than