The challenges in managing employee’s performance through effective appraisal system Essay


Developing an assessment system that accurately reflects employee public presentation is a hard undertaking. Performance appraisal systems are non generic or easy passed from one company to another ; their design and disposal must be bespoke to fit employee and organisational features and qualities.

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This assignment highlights the importance of effectual public presentation assessment system with the evaluation mistakes and challenges that the organisation faced in a competitory working universe. First of all I give a clear apprehension of what public presentation assessment is and so in treatment portion I look frontward the jobs and challenges that organisations faced while evaluation their employee public presentation through evaluation graduated table method utilizing company illustrations. Subsequently on the survey discussed detailed on the critical incidents that organisations might faced and the solution. In decision portion I suggest a modern effectual public presentation assessment system that can assist organisations to get the better of the jobs and challenges they faced during rating of the employees.

Performance Appraisal

Harmonizing to Hannah, P. , ( 2009 ) , ‘Performance assessment is a formal direction system by which the occupation public presentation of an employee is examined and evaluated, with the purpose of placing their strengths and failings for betterment in future. The process is conducted by the subsequent supervisor or director ‘

Aminuddin. M ( 2008 ) , States that ‘Organizations interested in best pattern are invariably and actively looking for ways to better employee ‘s public presentation and actuate single employees to accomplish the best they can. In order to be effectual, public presentation assessment must carry through certain standards ; public presentation assessment system should be formalized so as to guarantee equity to the workers involved, a systematic assessment of employees makes it possible to accomplish assorted benefits like:

Encouraging quality public presentation by honoring those who do good

Improve current public presentation by giving workers feedback

Identify preparation demands

Initiate just disciplinary proceedings

Supply a channel of communicating between directors and their subsidiaries

Challenges with effectual public presentation assessment

Several jobs may originate during public presentation assessments. Some job arises from the director, some from the employees and some from other factors ( Wells, 1994 ) . Most employees dislike public presentation assessment interviews for fright of unfavorable judgment, fright of uncertainness in managing inquiry and fright that their wages, publicities and their fates with the organisation flexible joint upon the results of these interviews as justification for determinations that are already made refering wages, publicities and occupation term of offices ( Nelda, ND ) .

Sometimes organisations come across assorted jobs and challenges of public presentation assessment in order to do a public presentation assessment system effectual and successful.

Determining the rating standards

Recent research on Compare InfoBase Limited ( 2007 ) , has shown, the Identification of the rating standard is one of the biggest jobs faced by the top direction. The public presentation informations to be considered for rating should be carefully selected. For the intent of rating, the standards selected should be in a mensurable term.

Make a evaluation instrument

The intent of appraisal procedure is to judge the public presentation of the employees instead than the employee. The focal point of the system should be on the development of the employees in the organisation, Compare InfoBase Limited ( 2007 ) .

Lack of competency

Top direction should take the raters or judges carefully. They should hold the needed expertness and the cognition to make up one’s mind the standards accurately. They should hold the experience and the necessary preparation to transport out the assessment procedure objectively, Compare InfoBase Limited ( 2007 ) ,

Mistakes in evaluation and rating

Many mistakes based in forces bias like stereotyping, halo consequence may crawl in the assessment procedure. Therefore the rater should exert objectively and fairness in measuring and evaluation the public presentation of the employees, Compare InfoBase Limited ( 2007 ) .


The appraisal procedure may confront opposition from the employees and the trade brotherhoods for the fright of negative evaluations. Therefore, the employees should be communicated and clearly explained the intent as good the procedure of assessment. The slandered should be clearly communicated and every employee should be made cognizant that what precisely is expected from them, Compare InfoBase Limited ( 2007 ) .

One survey shows that in UK, most of their Universities and colleges faced jobs of public presentation assessment. Simmons, J. , ( 2001 ) , states that, a closely related issue was the age -old appraisal quandary of accomplishing an appropriate balance between the purposes of control and committedness. the survey shows that the traditional assessment strategies emphasis on “ control ” by qualifying and measuring the single employee part to the organisation “ lives on ” within modern-day public presentation direction system by guaranting each employees public presentation aims thrusts from and lend to those at departmental, divisional, or corporate degree.

Taylor, S. , ( 2002 ) , research shows that the manner in which assessment carried out in the organisation and in peculiar, to unjust prejudice in managerial appraisals of public presentation. Harmonizing to him the jobs with the evaluation systems are:

The inclination to give a good overall appraisal on the footing that one peculiar facets has been accomplished good

A inclination to avoid giving tow evaluations, even when deserved, for fright of angering or upsetting a weak performing artist

The inclination to give a hapless overall appraisal on the footing of peculiar hapless public presentation in one country

The inclination to give peculiar weight to recent happenings in making judgements about single public presentation

The inclination to give high evaluation to people who have performed good historically, whatever their public presentation over the old old ages

A inclination to forbear, on rule from giving peculiar high evaluations

A inclination to rate subsidiaries at a lower degree than the valuator achieved when in their place

Some of the unfavorable judgment of public presentation assessment are the focal point will be excessively much on the single and does small to develop employees. Employees and supervisors believe that the assessment procedure is earnestly flawed and assessments are inconsistent, short term oriented, subjective and utile merely at the extremes of public presentation.

Problems with the evaluations
The drawback of essay rating method will be their length and content can change well, depending on rater, the assessment are hard to compare and the composing accomplishments of valuator can besides impact assessment.

Critical incidents drawbacks are like rater is required to jot down incidents on a regular basis, which can be burdensome and clip consuming. And this method may take to friction between director and employees when employees believe director is maintaining a book on them.

The drawback for checklists would be raters can see positive or negative intension of each inquiry which introduces prejudice. It is clip devouring to assemble inquiries for each occupation class, separate listing of inquiries must be developed for each occupation class and checklist inquiry can hold different significances for different raters.

Problems with in writing evaluations graduated table have some failings by measuring the rates, such as judges are improbable to construe written descriptions in the same mode due to differences in background, experience and sometimes personality. So it would be better to take classs that have small relationship to occupation public presentation and omit classs that have a important influence on occupation public presentation.

Performance assessment can besides hold legal effects in the field of favoritism on land of sex, race and disablement. This occurs when they are used as the footing of or justifications for advancing employees, increasing or diminishing single wage degrees, or choosing employees for new chances in the organisation. Similar considerations use where wage rates are determined as a consequence of public presentation evaluations.

Sometimes the jurisprudence will besides impact the rating of public presentation of employees and sometimes these subjective judgements can present bias into the system. In Brito v. Zia Company, the company ‘s public presentation rating instrument was invalid because it did non associate to of import elements in the occupations for which employees were being evaluated. Other public presentation rating cases have dealt with sex, race, and age favoritism in expirations, publicities, and layoffs. Maclean, J. , ( 2001 ) , States that, when Canadian employment conducts an assessment these Torahs prohibits favoritism based on race, faith, cultural or national beginning, sex and matrimonial position.

Problems that organisation face while utilizing 360-degree feedback would besides include rate mistakes. Each beginning of feedback suffers from changing beginnings of possible rater mistake. ( e.g. , halo mistake, lenience or badness, ascription mistakes ) . By utilizing all these differing beginnings of information agencies covering with the all different possible avenues for rater mistake to ooze into the rating.

The 2nd unfavorable judgment is cost and confusion. It can frequently be really dearly-won and boring to implement a 360-degree plan. The multiple beginnings of feedback are hard to organize, may belie each other, and are frequently confounding to screen out and procedure efficaciously. This puts the load on the director to filtrate through the stuff provided and polish in into a consistent rating.

Critics besides fear a negative attitude in 360-degree assessment. The added beginnings of information may be used by a director to bolster negative assessments with a “ see I told you so ” attack. Finally employees likewise worry about confidentiality. With so many beginnings of feedback about individual single drifting about, it is feared that both rater and ratee may lose their rights to confidentiality.

The job with MBO is that it will be non applicable to all occupations ; allotment of merit wage may ensue in puting short-run ends instead than of import and long-run ends.

Psychological assessment would be slow and dearly-won and may be utile for bright immature members who may hold considerable potency. However quality of these assessments mostly depends upon the accomplishments of psychologists who perform the rating.

Disadvantages for appraisal centres will be Costss of employees going and housing, psychologists, evaluations strongly influenced by assessee ‘s inter-personal accomplishments. Solid performing artists may experience suffocated in fake state of affairss. Those who are non selected for this besides may acquire affected.

Desseler, G. , ( 2011 ) , ‘The figure of things that can take to bias during assessments is illimitable. One survey focused on the rater ‘s personality. Raters who scored higher on conscientiousness tended to give their equals lower evaluations, they were stricter, in other words, those hiting higher on amenity gave higher evaluations, they were more indulgent ‘ . Even the assessments purpose biases the consequences. Unfortunately the appraisee ‘s personal features besides affect their evaluations.

Solutions for evaluation ratings

Rater preparation and orientation in 360-degree assessment plans is going progressively popular. Research shows that most of the American companies used to develop their raters in order to minimise the job occur during the assessment. This preparation introduces employees to the construct of multiple beginning feedback, and it makes them cognizant of rater mistake and methods to decrease it. Rating formats that focus on the frequence of specific behaviours can besides assist to restrict beginnings of mistakes. Desseler, G. , ( 2011 ) , Computer assessment package makes covering with the oversupply of incoming information easier to manage. This package can besides show the wealth of available informations in a simple format to give to or discourse with the employee.

Desseler, G. , ( 2011 ) , Overall 360-degree assessment systems provide a wealth of information about an employee ‘s behaviour that might be unavailable in traditional director rating formats. Customers ( both internal and external ) , equals, subsidiaries, and others may all hold entree to alone public presentation informations that can supply a truer image of the person ‘s public presentation. This method of rating can besides supply information on the province of the company ‘s ends and demands. For illustration, Digital executives use the feedback from external clients to find if the strategic program they laid out is blandishing down to employees.

Federal express uses a 360 -degree feedback system as the foundation of nonsubjective end puting. By having information from internal and external clients, an single additions feedback as to what countries are seen as superior and what countries are seen as deficient. Desseler, G. , ( 2011 ) , this feedback is so used in a direction by aims system to specify the ends for that single harmonizing to the demands of his or her clients. These new ends help to concentrate employee on what is required to better public presentation and accomplish client satisfaction at the same clip.

Harmonizing to Taylor, S. , ( 2002 ) , we can reason that the appraisal centres will be more flexible. They are non purchased ‘off-the-shelf ‘ like psychometric trial, and are non clip restricted as interviews. There is hence a plentifulness of range to present exercisings that are of specific relevancy to the occupation and the organisation involved. For this ground, each centre is likely to differ from others to a considerable grade. That said a figure of exercisings and types of exercisings associated with appraisal centres are often included.

Desseler, G. , ( 2011 ) , States that well-conducted appraisal centre can accomplish better prognosiss of future public presentation and advancement than other methods of assessments. Besides dependability, content cogency and prognostic ability are said to be high in assessment centres. The trials besides make certain that the incorrect people are non hired or promoted. Finally it clearly defines the standards for choice and publicity. Garry Desseler, ( 2011 ) , Many of American top companies have set up appraisal centres where they can first interview possible employees, so measure them in existent work state of affairs. It provides an first-class manner to measure an person ‘s capablenesss so perform and entry degree direction occupation.

Donald, ( 2008 ) , When the organisation uses MBO techniques, it will increases the employee ‘s engagement in puting public presentation aims and concomitantly increase the motive required to make those aims. On the same clip it offers and nonsubjective factual footing for mensurating achievement and besides it emphasizes consequences, non traits or personality features. MBO is wholly occupation centered ; it supports the psychological construct that people will exert self way and ego control in the achievement of organisational aims that they have participated in scenes.

Sommerville ( 2007 ) , argue that public presentation assessment must be free from favoritism. The assessment standards, the methods and certification must be designed to guarantee that they are all occupation related. Otherwise there will be a possibility that an employee may dispute determinations made by direction based upon a flawed assessment system in tribunal because directors and supervisors have said or done something that has adversely affect their vitamin E employees.

The Recommendations for a lawfully defendable assessment system would include

Procedures must non differ because of race, sex, national beginning, faith, or age

Use nonsubjective, non-rated, uncontaminated informations

A formal system of reappraisal or entreaty should be available for dissension over assessments

Use more than one independent judge

Use a formal, standardised system for rating

Avoid evaluations on traits, such as dependableness, thrust, aptitude, and attitude

Improvement of public presentation assessments

Performance assessments normally can be improved immensely. The director should be prepared adequately before carry oning a public presentation assessment interview. Many directors seem excessively busy to garner the needful information or to be after for an interview, ensuing in defeat and confusion for the employee. The public presentation assessment interview is excessively of import and has excessively great an impact upon the organisational clime to be conducted without necessary information and readying ( Nelda, ND ) .

Hannah Paul, ( 2009 ) it is a usual pattern in most topographic points that, directors conduct assessments merely to warrant pay addition or lessening, burying that the exclusive intent of public presentation assessment is non salary addition or lessening, but the development of employee accomplishments and the betterment of work in the office. Besides that, it is besides of import to give employees feedback ( whether it is a affair of money or non ) , on the work that they are making. This helps construct employee morale and motivates them to work even better, whereas it is besides of import to give critical feedback to employees, so they can acquire their act together.

The focal point of directors on public presentation assessments at the terminal of the twelvemonth, alternatively of working towards bettering public presentation during the twelvemonth is the chief job today. If directors focused their attending to assisting employees better their occupation public presentation it would do it easier for them to analyse it at the terminal of the twelvemonth, alternatively of merely evaluation employees based on Numberss or personality traits, which is neither accurate nor just to the employees. If directors and supervisors were to understand how much they themselves would profit from making this, it would do their occupation much easier.


Debora, F.B. ,, ( 1997 ) , one of the first stairss in developing an effectual public presentation rating system is to find the organisation ‘s aims. These are so translated into departmental and so single place aims – working with employees to hold their personal public presentation marks. This allows the employee to cognize “ up forepart ” the criterions by which his/her public presentation will be evaluated. This procedure involves clear uping the occupation function, occupation description and duties – explicating how the function and duties contribute to wider ends, why single and team public presentation is of import and merely what is expected within the current planning period. Aims developed in this manner should be brooding of the organisational ends and supply linkages between employee and organisational public presentation.

After analyzing the methods that used to measure employee public presentations the best method that I could happen was 360-degree feedback method and MBO method. These two methods helps to measure employee ‘s public presentation with all the of import factors that an employee demands to better in order to better the person degrees every bit good as organisational degree. Directors can utilize these two methods to measure employee ‘s public presentation and give feedback to employees about their strengths and failings which they need to better and after analysing this, employees can work hard to accomplish organisational ends to vie with others.


In decision it can be said that, public presentation assessment is by and large a public presentation mensurating tool, It is non merely to place employee ‘s occupation public presentation but it besides helps directors addition information that help them do their employees work more fecund. Besides critical information can be gained so that organisations may acknowledge the troubles that workers face in mundane work. However it should non be forgotten that this system has a batch of defects, and may non ever be ideal for companies, but it can non be ignored. It is an inevitable process which no affair how much employees or directors try to disregard it, needs to be carried out, because without it employee rating is non possible. One can soften it by naming it “ development treatments ” or have them on a usual footing to place countries of betterment, but it can non be overlooked.

Developing an effectual public presentation assessment system requires strong committedness, from top direction: if the system does non supply the linkage between employee public presentation and organisational ends, it is bound to be less than wholly effectual.


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