Performance appraisals are designed to provide feedback to
employees, recommend new strategies to improve performance, encourage
communication between the managers and employees, and promote
professional growth. However, assessing employee performance through a
performance appraisal does not ensure an accurate, objective and fair
evaluation of employee performance. Companies have failed to control
employee performance through performance appraisals despite their
efforts to avoid possible appraisal pitfalls.
Managers
generally do not have the requisite skills or a serious approach
towards the appraisal process to make performance appraisals work. They
are rarely conducted in ways or techniques that support the process as a
fair means of performance evaluation. A few reasons that make an
appraisal system fail are mentioned here.
Using the Traditional Autocratic System
Restricting performance appraisal process to filling out outdated forms is a primary reason that makes appraisal system a failure. Managers rarely have the tools of measurement of performance let alone fair, unbiased records of employee performance. They are hardly able to provide constructive feedback crucial to productivity and professional growth. Performance of an employee is a complex result of a multitude of variables many of which are beyond his control, like the system in which he operates, internal and external environment that have a direct impact on his results.
Moreover rarely do companies have accurate job descriptions of an employee. Even if they do, it is constantly changing with the dynamic industrial scenario making it difficult to measure. There many tangible and intangible factors that affect performance. Blaming the employees rather than assisting them towards achievement can also result in an ineffective appraisal process; it can promote insecurity and resentment among employees.
An Annual Stressful Event
Another reason why appraisal systems fail is poor appraisal time; it is done as an annual event while the employee's performance would be far more accurately assessed if observed throughout the year objectively. Appraisal is generally an annual stressful event as no manager likes to sit in judgement of his people knowing that he is making an off the cuff assessment. Moreover, bad timing, mostly at the end of the year when work is at its peak makes appraising difficult at a time of stress and pressure. Such an evaluation can hardly be fair and true.
Teamwork or Individual Competitiveness
Another reason behind the failure of performance appraisals can be the different work parameters of today's business world. Unlike the past, teamwork is valued more than individual input. This makes the traditional employee evaluation norms outdated and inadequate to assess performance. Since it is far more complex to assess teamwork than individual performance, a traditional appraisal system fails to provide an accurate evaluation of an individual employee's performance.
Lack of Employee Motivation
Performance appraisals fail because they are not motivating. Employees usually do not believe that their performance and pay raise is related, and find an appraisal process discouraging. Besides, the ranking system rates people above and below average and the managers try to give average rating to keep themselves safe from having to justify their decisions. Since no employee ranks himself average they don't trust the system.
Poor Appraising Skills
It is essential for a manager to know how to evaluate an employee's performance. An untrained manager might evaluate on one skill than on total performance. He might assess behaviour and not performance or might not know how to use full range of a rating scale. Appraisal programs can be organized and implemented through procedures and training but it is nearly impossible to make them objective and consistent.
Performance appraisals rarely work because they have inherent in them the element of distrust and are judgmental which is opposed to the modern concept of teamwork, trust and creative working. You can't be a part of a team or a family where your future is dependent on subjective judgement of your superiors who have their own vested interests and favour your colleagues who have powerful influences. The appraisals are also are poorly conducted with inadequate performance rating criteria. To make them work, trust has to be built and system shortcomings need to be addressed so that appraisals are supportive and not a lop-sided fault finding exercise for performance of activities on which the employee has little control. Performance appraisals as they are today are ineffective as tools for increasing productivity and progress.
Using the Traditional Autocratic System
Restricting performance appraisal process to filling out outdated forms is a primary reason that makes appraisal system a failure. Managers rarely have the tools of measurement of performance let alone fair, unbiased records of employee performance. They are hardly able to provide constructive feedback crucial to productivity and professional growth. Performance of an employee is a complex result of a multitude of variables many of which are beyond his control, like the system in which he operates, internal and external environment that have a direct impact on his results.
Moreover rarely do companies have accurate job descriptions of an employee. Even if they do, it is constantly changing with the dynamic industrial scenario making it difficult to measure. There many tangible and intangible factors that affect performance. Blaming the employees rather than assisting them towards achievement can also result in an ineffective appraisal process; it can promote insecurity and resentment among employees.
An Annual Stressful Event
Another reason why appraisal systems fail is poor appraisal time; it is done as an annual event while the employee's performance would be far more accurately assessed if observed throughout the year objectively. Appraisal is generally an annual stressful event as no manager likes to sit in judgement of his people knowing that he is making an off the cuff assessment. Moreover, bad timing, mostly at the end of the year when work is at its peak makes appraising difficult at a time of stress and pressure. Such an evaluation can hardly be fair and true.
Teamwork or Individual Competitiveness
Another reason behind the failure of performance appraisals can be the different work parameters of today's business world. Unlike the past, teamwork is valued more than individual input. This makes the traditional employee evaluation norms outdated and inadequate to assess performance. Since it is far more complex to assess teamwork than individual performance, a traditional appraisal system fails to provide an accurate evaluation of an individual employee's performance.
Lack of Employee Motivation
Performance appraisals fail because they are not motivating. Employees usually do not believe that their performance and pay raise is related, and find an appraisal process discouraging. Besides, the ranking system rates people above and below average and the managers try to give average rating to keep themselves safe from having to justify their decisions. Since no employee ranks himself average they don't trust the system.
Poor Appraising Skills
It is essential for a manager to know how to evaluate an employee's performance. An untrained manager might evaluate on one skill than on total performance. He might assess behaviour and not performance or might not know how to use full range of a rating scale. Appraisal programs can be organized and implemented through procedures and training but it is nearly impossible to make them objective and consistent.
Performance appraisals rarely work because they have inherent in them the element of distrust and are judgmental which is opposed to the modern concept of teamwork, trust and creative working. You can't be a part of a team or a family where your future is dependent on subjective judgement of your superiors who have their own vested interests and favour your colleagues who have powerful influences. The appraisals are also are poorly conducted with inadequate performance rating criteria. To make them work, trust has to be built and system shortcomings need to be addressed so that appraisals are supportive and not a lop-sided fault finding exercise for performance of activities on which the employee has little control. Performance appraisals as they are today are ineffective as tools for increasing productivity and progress.
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