Benefits and Errors of Performance Appraisals

This article discusses the benefits of performance appraisals, including motivational, administrative, and legal benefits. It also covers common rater errors, such as halo effect, central tendency error, recency error, and leniency error. Finally, it provides tips for conducting a successful performance appraisal.

Running head: APPRAISAL
APPRAISAL
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1APPRAISAL
Benefits of performance appraisals:
Motivational: employee appraisals ease the way to motivate the employees effectively which
helps to encourage the personal growth. Through recognition the manager can motivate the
employees to contribute more in the production of the firm. Performance appraisal are the
perfect opportunity for addressing a long term goal which may not be on each day’s
responsibility. In one hand it gives the employees opportunity to be a greater use in the
organising, through performance appraisals, the employees feel more attached with their
organisations.
Administrative: through performance appraisals the company get the opportunity to make
decisions and implement them easily. Appraisals create the ground for making dictions of
promotion, transfer, termination and pay changes of the employees. Moreover, it is the way to
introduce various remuneration program.
Legal: through performance appraisals, the employees get opportunity to get the documented
evidences that will justify the HR actions of the management. This is the ground to get justice
for any discriminatory treatments of the employees which lead to create an atmosphere of
appropriate workplace.
Rater errors that arise in performance appraisal:
Halo effect: it happens when the rat3r’s overall negative or positive impression of the
employee results in the rating of the same across each rating dimensions. It is the way the
managers reveal their personal feelings about the employees to affect their performance
ratings of them.

2APPRAISAL
Central tendency error: it is the tendency of the raters for avoiding making some
extreme judgement of the employee performance subsequent in rating all the employees in
the middle section of the scale. In case the managers are not very comfortable with the
conflicts hence avoid giving low marks for avoiding dealing with the behavioural issue and
when the managers deliberately force all the employees to stay at the middle of the scale.
Recency error: it is the tendency of the raters to allow more recent tendencies to allow
more recent events of the employee’s behaviour to carry so much of weight in the evaluation
of performance over entire rating period. Therefore, the managers need to keep accurate
records of employee performance through the year for referring them at the time of
performance appraisal.
Leniency error: it is the tendency of the raters to rate all the employees at the positive
end of the scale that is positive leniency or at the lowest end of the scale for negative
leniency. It takes place when the managers over emphasize either positive and negative
behaviours.
Successful appraisal:
For preparing a successful appraisal, the managers first need to judge the job
description of the employees in the contrast of the changes took place in the interim. The
mangers need to be familiar with the job responsibilities as well as performance objectives.
They need to have all year long preparation to get the opportunity to observe their employees
job performance. For conducting successful performance appraisals, the managers need to
have proper information to differentiate between behaviours which produce effectives and
ineffective job performances.