Comprehensive Analysis: Performance Appraisal Issues and Methods

This report delves into the critical issues surrounding performance appraisals, such as bias, comparison errors, leniency, lack of accountability, and poorly trained managers, which can significantly demotivate employees and hinder organizational goals. It emphasizes the importance of formal appraisal methods over informal ones and suggests strategies to address these issues, including outcome-based measures, multiple rater reviews, and trait-focused appraisals that emphasize work ethics and consistent feedback. The report advocates for regular appraisal sessions to recognize individual contributions, maximize sales generation, and improve customer satisfaction, ultimately improving overall organizational performance. Desklib offers similar solved assignments and resources for students.

Performance Appraisal
Issues and methods

Performance Appraisal 1

Performance Appraisal 2
Table of Contents
Introduction...........................................................................................................................................2
Performance appraisal issues-...........................................................................................................2
To solve the performance appraisal issues-...........................................................................................3
Conclusion.............................................................................................................................................5
References.............................................................................................................................................6

Performance Appraisal 3
Introduction
Performance Appraisal is a timely evaluation of employee`s performance. The
performances appraisal is based on self-assessment or group assessment. A performance
appraisal is important process for the employee and the manager. By using different ways for
appraisal through qualitative or quantitative methods, it creates a sense of motivation. The
area of performance appraisal can be productivity, duration of training and quality of work.
The purpose of following different performance appraisal method is to examine the employee
in every situation (Cascio, 2018).
Answer to question no. 1
As per the given case, informal methods are followed to appreciate the employees.
Informal method should not take place. Sometimes employees are not appreciated timely,
annually or monthly. Though employees perform well in the month but when the
performance is not appreciated, they get demotivated.
Performance appraisal issues-
 Bias- Bias can be either favouritism or hatred for some one. Managers have the
authority to improve the performance of the employees. Through performance
appraisal, Managers appreciate the good performing workers. Sometimes manager
may have favouritism for some employees only that employee is appreciated and
promoted. Whereas, manager may have hatred which can demotivate even the good
performers. Sometimes, managers do not appreciate the one who deserve.
 Comparing error- The employees should not be compared against each other. The one
who do work efficiently must be appreciated. Individual performance should be
appreciated accordingly. Sometimes comparison may demotivate employees.
Demotivated employees cannot sustain in the same organisation longer.

Performance Appraisal 4
 Leniency- some leaders do not have the tendency to appreciate employees anytime.
They always mark everyone`s performance as average. That do not motivate
employees to improve. There should be a method to mark and evaluate performance
can be ranking. The good performers should be given higher ranks and incentives and
vice-versa.
 Discarded from rewards- In some organisation, the operation seems very casual.
There is no system of appreciating performance. Scoring merit, earning bonus and
promotion is discarded from the list of operation of the organisation.
 Lack of accountability- In the given case study, for every good performance the whole
team is appreciated. Appreciating individuals will benefit more in terms of
productivity. Only team leaders on the behalf of whole team are appreciated.
Individual appreciation will be more effective.
 Lack of outcome-based measure- Performance appraisal is done in context of
organisational goals. Appraisal should be associated with long term goals of the
organisation. Performance evaluation is based on measurable outcomes such as-
safety records, level of sales and evaluations from customers are ways to look into an
employee's performance (Sullivan, 2011).
 Poorly trained managers- sometimes the proper training is not given to previous
managers, time by time they are able to earn a position at higher level. But they don’t
take performance appraisal seriously. It is the responsibility of the managers to
conduct the appraisal activities time to time. They just undertake programs to justify
the owners rather than really appreciating (Richards, 2018).
Answer to question no. 2
To solve the performance appraisal issues-

Performance Appraisal 5
Many companies believes that performance appraisal is waste of time, it takes a lot of
time. Organisation also complains that it does not contribute to productivity. Companies
should follow formal way of appreciating employees. Organisation should conduct appraisal
session every year. To solve the problems there are some appraisal methods. There are
various methods which can improve the performance appraisal issues. By following proper
method proper method it can be done. Manager give an area of responsibility to achieve a
certain result. This measure is taken to judge the contribution an employee can make. It is
easy to find whether the desired results are achieved or not within a given time. Rather than
conducting informal appraisals. Behaviour of every employee should be judged and
evaluated. Human resource department evaluates on the basis of performance. Accordingly
they are marked either good or poor. The most prevailing issue is inattentive manager. The
manager don’t consider any worth working of the employee. So, Peers, managers, leaders and
supervisors are asked to give reviews for an employee. Multiple raters matters for
performance evaluation. Each employee is compared to their job colleges. All the employees
in the same department are ranked accordingly. Overall performance is measured (Bernardin
et al., 2016). The 5 star ranking defines excellent but 2 star and 3 star becomes indifferent
that does not define the actual performance. Sometimes due to the complexity, comparison
becomes difficult. But on the basis of same feature on the same level, the performance
appraisal can be measured. It will maximise total generation of sales or satisfaction level of
customers (Landy, Zedeck and Cleveland, 2017). In Trait focussed Appraisal, The main focus
of this appraisal method is to give more emphasis on work ethics. Day to day feedback
should be asked from the employee. (Tziner and Rabenu, 2018).
Conclusion
In every organisation the existence of performance appraisal method is mandatory. In
the given case study, managers should appreciate the every individual rather than the whole

Performance Appraisal 6
team. Managers were following informal ways for appraisal. Managers might have received
proper training. Appraisal should take place monthly or annually. Various methods includes
rating as per the behaviour. Awarding the individual who contribute to the maximum sales.

Performance Appraisal 7
References
Bernardin, H. J., Thomason, S., Buckley, R. M., & Kane, J. S. (2016). Rater Rating‐Level
Bias and Accuracy in Performance Appraisals: The Impact OF Rater Personality,
Performance Management Competence, and Rater Accountability. Human Resource
Management, 55(2), 321-340.
Cascio, W. (2018). Managing human resources. UK: McGraw-Hill Education.
Landy, F., Zedeck, S., & Cleveland, J. (2017). Performance measurement and theory. UK:
Taylor & Francis.
Richards, L. (2018). What are the problems with performance Appraisals?. Retrieved from:
http://smallbusiness.chron.com/problems-performance-appraisals-1913.html
Sullivan, J. (2011). The Top 50 Problems with Performance Appraisals. Retrieved from:
https://www.tlnt.com/the-top-50-problems-with-performance-appraisals/
Tziner, A., & Rabenu, E. (2018). Performance at work and its appraisal: Demarcation of the
field. In Improving Performance Appraisal at Work. U.S.A.: Edward Elgar
Publishing.