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PERFORMANCE APPRAISAL
ADVANTAGES AND LIMITATIONS
PERFORMANCE APPRAISAL -
 Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of a person
for further growth and development.
Advantages :
 Promotion: For efficient workers.
 Compensation: packages which includes bonus, high salary, etc.
 Employees Development: the supervisors to frame training
policies and programmes.
 Selection validation: The supervisors to understand the validity
and importance of the selection procedure.
 communication: For an organization, effective communication
between employees and employers is very important.
 Motivation:
Performance appraisals provide employees with recognition for
their work efforts and so motivates them to work efficiently.
LIMITATIONS:
 First Impression: Rater’s form an overall impression about
the employee on the basis of some particular
characteristics.
 Halo Effect: The individual’s performance is completely
appraised on the basis of a perceived positive quality,
features identified by them.
 Excessive Stiffness or Lenience: Employees may be rated
very strictly or leniently.
 Central Tendency: Appraisers rate all employees as
average performers.
 Personal Biases: The way a supervisor feels about each of
the individuals working under him - whether he likes or
dislikes them.
 Spillover Effect: The present performance is evaluated
much on the basis of past performance.
 Recency Effect: Rating isinfluenced by the most recent
behaviour .
THANK YOU!!!

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Performance appraisal

  • 2. PERFORMANCE APPRAISAL -  Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Advantages :  Promotion: For efficient workers.  Compensation: packages which includes bonus, high salary, etc.  Employees Development: the supervisors to frame training policies and programmes.  Selection validation: The supervisors to understand the validity and importance of the selection procedure.  communication: For an organization, effective communication between employees and employers is very important.  Motivation: Performance appraisals provide employees with recognition for their work efforts and so motivates them to work efficiently.
  • 3. LIMITATIONS:  First Impression: Rater’s form an overall impression about the employee on the basis of some particular characteristics.  Halo Effect: The individual’s performance is completely appraised on the basis of a perceived positive quality, features identified by them.  Excessive Stiffness or Lenience: Employees may be rated very strictly or leniently.  Central Tendency: Appraisers rate all employees as average performers.  Personal Biases: The way a supervisor feels about each of the individuals working under him - whether he likes or dislikes them.  Spillover Effect: The present performance is evaluated much on the basis of past performance.  Recency Effect: Rating isinfluenced by the most recent behaviour .