Some Problemsw with Performance Appraisals

Some Problems with Performance Appraisals

Performance appraisals are more or less formal reviews of a subordinate's work performance by a supervisor. They are preformed to identify strengths and weaknesses as well as to discuss areas of improvement. They are often linked to incentives such as raises and promotions for workers whose performance is reviewed as high, and job loss or cut-backs for those whose reviews are low (www.performance-appraisal.com).

There are a number of problems that can arise when managers need to complete their workers' performance appraisals. Many of these problems can be directly linked to decision making. Some of the problems that arise involve: complexity, flexibility, clarity of objectives, and the halo effect. This paper will discuss how the four mentioned problems occur in relation to performance appraisals and suggestions on ways that managers can eliminate or reduce each problem.

Complexity

Often managers weaken the effectiveness of their performance appraisals because they make them too complex. Many managers use performance appraisal software to make their job easier. However, these programs offer managers numerous evaluation options to include in their reports. Many managers choose too many areas to review because the options are there in front of them and not because the options will strengthen the review. When reviews are too complex and assesses areas that are not important to workers, the evaluation looses credibility. Evaluations become a formality and not tools to assist workers improve their performance. Workers and Managers will begin to dread to whole process because of how much time it will take to accomplish the task (Joinson, 2001).

To increase the effectiveness of performance appraisals managers should limit the number of areas that they review. A simpler evaluation offers larger uniformity in reviews over a period of time. If a worker knows what is expected of them they will be more focused at developing the skills required to complete those tasks (Joinson, 2001).

Flexibility

Managers need to remain flexible when they develop their performance appraisals. It is often easier for managers to develop one standard appraisal and use it for every employee under them. The problem with a blanket review is that not every employee will require the same skills to complete their individual jobs. The appraisal needs to flex to incorporate the workers critical skills or tasks and if it doesn't the appraisal will not be effective (Joinson, 2001).

Managers should only evaluate a task or skill if it directly effects the employee's position. For example, it doesn't make sense to evaluate social skills if the worker has no direct contact with customers or other workers. A salesman however, should be heavily evaluated on social skills because they are necessary for job accomplishment.

Clarity of Objectives

When an employee is evaluated, the manager needs to compare their performance to some standard. Standards need to be realistic in order to be effective. If a manager sets the standard too low then all employees will look superb regardless of their actual performance. Managers will not be able to identify where problems lie within the organization and workers will have no real idea how their performance stack up to their peers. Is it possible for sales to continually decrease, but the sales team is rated as excellent? The answer is yes if the employee review standard is too low. The reverse of the situation can cause its own set of problems if the manager sets the company standard too high. When standards are set too high employees will quickly become discouraged.