Sources of Performance Appraisal

What are the Sources of Performance Appraisal:

  • Combination of group and Individual appraisal: Performance appraisal evaluates employees who frequently aspire to improve their performance rather than their service. To avoid this situation, teamwork is necessary. In some cases, individual appraisal is needed and in others, group appraisal is needed. Sometimes, there is mismatch between a manager’s own performance and that of the group. In such cases, individual appraisal should improve the individual performance whereas group alone may have obscured the problem. The difference between the two is that the individual performance appraisal group appraisal upon the confidentiality of an individual performance appraisal whereas group appraisal is shared among all the team members.
  • Appraisal by superior: this is the most common appraisal and is based on the norm that the manager is the best judge of his employee’s performance. However, there are several drawbacks:
    • Manager’s power to punish and reward employees.
    • The evaluation is often one-way.
    • Manager may not be able to give proper feedback feedback on performance to the employee.

Due to these drawbacks, other sources of employee appraisal have emerged such as self-appraisal, peer review, upward appraisal.

  • Self-appraisal: Self-appraisal is the technique of evaluating your own performance and then discussing this with line manager. Self-appraisal is useful when managers seek to increase an employee’s involvement in the performance appraisal process. This requires employees think about their strength and weakness. It is useful when the manager and the employee discuss and jointly establishes future performance goals’. This method became popular because it was assumed that if employees are involved in the appraisal process, they may be committed to their jobs and that it could also reduce role conflict. However, this system is subject to systematic biases and distortions. Due to this problem, another variation of self-appraisal came into existence, that is, self initiated appraisal, which is gaining popularity. In this system, an employee is free to ask for review from his manager anytime he wants. The drawback of this system Is that it can be useful for small organizations but not for large ones, as this activity takes additional time.
  • Peer review: Peer review has been in existence since 1920s. The system is based upon the assumption that co-employees who performance similar tasks are more knowledgeable about the work than a manger and are in better position to evaluate work. However, there is a natural conflict of interest on a peer review, which can result in either positive or negative bias, depending on the situation. Therefore, peer review is prone to lacking fairness.

The following shortcomings of the peer review system:

§  Peer review may be simply a popularly contest

§  Mangers are reluctant to give up control over the appraisal process

§  Peers rely on stereotypes in ratings.

  • Upward appraisal: Employees by virtue of their frequent dealing and interactions with their manager can evaluate them better. However, using this system, employees may harm or back stab their managers. Another drawback of the system is that employees may not have access may not always evaluate performance objectively or honestly.
  • Benchmarking: Benchmarking is a continuous process of measuring products, services and practices against the recognized competitors with the objective of rectifying performance gaps. Meaningful benchmarking should be between organizations with similar goals and characteristics in order to deliver effective outcome from employee appraisal. By benchmarking, organizations can identify better [performance appraisal procedures and systems and re-design their own evaluation system for increased effectiveness and utility.

HR-Professionals 12 Appraisal 12


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