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Unit 6: Methods of Performance Appraisal




          The tests are selected for assessment taking the following points into consideration:  Notes

          1.   Objective—what needs to be measured;
          2.   Reliability and validity;
          3.   Length of time required to administer the test;

          4.   Availability of qualified experts to administer, scope and interpret the tests;
          5.   Cost involved.




              Task    Which appraisal method is more suited for appraising the following categories
                     of employees?
             1.  IT professionals
             2.  HR professionals
             3.  Research professionals

             Give suitable example for choosing any particular method.


          6.7 Common Rating Errors

          Differences in perception and value systems influence evaluations. For instance, two raters

          observe an employee disagreeing with a supervisor. One perceives this as insubordination, but
          the other sees it as a willingness to stand up to for what he believes in. Individual rather bias can
          seriously compromise the credibility of an appraisal. Some of the common syndromes are:

          1.   Halo Effect: This is a tendency let the assessment of a single trait influence the evaluation

               of the individual on other traits too.
          2.   Horns Effect: This is a tendency to allow one negative trait of the employee to color the
               entire appraisal. This results in an overall lower rating than may be warranted.
          3.   Leniency or Constant Error: Depending upon the appraiser’s own value system which
               acts as standard, employees may be rated leniently or strictly. Such a rating does not carry
               any reference to actual performance of the employees. Some appraisers consistently assign
               high values to all employees, regardless of merit. This is a leniency error. The strictness
               tendency is a reverse situation, where all individuals are rated too severely and performance
               is understated.

          4.   Central Tendency: This is the most common error that occurs when a rather assigns
               most middle range scores or values to all individuals under appraisal. Extremely high or
               extremely low evaluations are avoided by assigning ‘average ratings’ to all.

          5.   Spill-over Effect: This refers to allowing past performance to influence the evaluation of

               present performance.
          6.   Personal Bias: Perhaps the most important error of all arises from the fact that, very
               few people are capable of objective judgments entirely independent of their values and
               prejudices.
          The above errors have evoked concerns about performance appraisal. McGregor (1960), with his
          concern for the human side of enterprise, appraisal represented a judgment and demotivating
          process. Similar concerns were voiced by Deming (1982) who suggested that appraisal was ‘a
          deadly disease which blamed individuals for problems systematic to organizations. Margerison




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