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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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