LIMITATIONS OR DISADVANTAGES OF PERFORMANCE APPRAISAL
The main limitations of performance appraisal are
1. Errors in Rating:
(a) Halo effect- Generally an employee is rated high or low on the basis of impression. On account of human traits, some employees manage to influence the appraiser's impression by sitting late on the job, although throughout the day he might have been loitering here and there on the other hand a sincere employee performing throughout the day but leaving his desk at prescribed departure time, may be considered lazy. The former may be rated high and the latter, low. This error may be minimized by rating all the employees on one trait before taking up another trait.
(b) General tendency- There is a general tendency in appraisers that they assign an average rating to avoid their comments to the final appraising authority in respect of below-average or above-average ratings. This kills the very purpose of the performance appraisal technique.
(c) Aptitude of appraiser- The rating of performance appraisal also depends upon the aptitude of the appraiser because a person having lenient views may allow a high rating and the other appraiser considered strict will assign a low rating. This tendency can be avoided by holding meetings so that the appraiser follows the principles of the technique of performance appraisal in its true letter and spirit.
(d) Bias- Sometimes an appraiser dislikes some employee and whatever better performance may be given by the target employee, he may never get a high assignment in his appraisal report. Such bias or prejudice may arise on the basis of religion, caste and creed, habits or interpersonal conflicts. Some recent incident experiences of may also influence the impression of the appraiser.
(e) Spillover effect- It is a spillover effect when past performance affects present performance. The employees are rated on the basis of past behaviour instead of the present performance and thus the spirit of appraisal is defeated.
2. Lack of Reliability:
Reliability refers to one's performance. Lack of consistency over the consistency of measurement of time and among different appraisers may dilute the reliability of performance appraisal. Lack of training of appraisal techniques and different qualities may also not be given proper weightage.
3. Lack of Knowledge:
On account of a lack of knowledge and experience, appraisers fail to assign a correct rating. Sometimes, appraisers have confused and unclear objectives of the appraisal system and therefore take it as a routine day-to-day file signing affair, which is not a conducive way of appraisal. The final appraising authority should finalise the rating with full attention and in a meaningful way.
4. Approach of Appraiser:
If the appraiser has a negative approach and assigns a rating with a sense of punishment, he will not do justice to the appraisal technique. The appraiser should have a positive approach and assign ratings with a view to development.
5. Resistance by Trade Unions:
Trade unions treat the appraisal system as discrimination among its members and therefore they resist it. Negative ratings, particularly of union leaders may adversely affect interpersonal and industrial relations and a slight controversy may result in trade union disputes.
RELATED TOPIC
Characteristics of Human Resource Management
Objective of Human Resource Management
Scope of Human Resource Management
