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Problems and ethics in
performance appraisal
Submitted by,
S.Krithika.
definition
According to Newstrom,
” It is a process of evaluating the
performance of employees, sharing that
information with them and searching for ways
to improve their performance”.
Process of performance appraisal
Setting
performance
standards
Communicating
standards
Measuring
standards
Comparing
standards
Discussing
results
Taking corrective
standards
Problems in performance appraisal
problems
 1. The halo effect:
The halo effect is introduced when an
overall impression of an individual is judged
on the basis of a single trait.
 2. Constant error:
This error is a reflection on the trait of the
rater. Some raters are, by nature, too liberal,
others too strict and some tend towards rating
most people in the middle.
 3. Recency of events:
There is a tendency of many evaluators to
give much more weight to the recent
behaviour of the candidate than the past
behaviour.
 4. The central tendency:
It is the most commonly found error. It is
the tendency of most raters to give average
ratings to all or the center of the scale.
 5. Errors of variable standards:
It is quite possible that organisations
follow different standards of performance.
Some divisional heads may require much
higher quality of performance than others.
 6. Other miscellaneous biases:
There may be some built - in biases in the
minds of the rater, based upon his own
perception of things, people and
performances.
Eg: A person may be rated higher because
he is a 'nice' person or because of his seniority.
performance appraisal
Dictionary meaning
 moral principles that govern a person‘s
behaviour.
Ethics involved in performance appraisal
 Rewards, punishments and threats
These should be used in a positive way. If
they are negatively used, it can affect the
morale of the employee.
An appraiser should not be able to reward
an employee that he/she likes more than
another, when the other is more qualified.
 Reliability and validity
The appraiser should provide consistent, reliable,
and valid information.
 Standardization
The performance appraisal process, forms,
administration techniques, and ratings should be
standardized so it affects all employees of the group. For
example, if they provide one form or rating system for one
employee, they must provide the same for another.
 Confidentiality
The feedback that the appraiser provides should be
confidential. Leaking it to unnecessary employees is
unethical
advantages
 Provide a record of performance over a period of time.
 Provide an opportunity for a manager to meet and
discuss performance.
 Provide the employee with feedback about their
performance.
 Provide an opportunity for an employee to discuss
issues and to clarify it.
 Can be motivational with the support of a good reward
and compensation.
disadvantage
 If not done appropriately, can be a negative
experience.
 Very time consuming especially for managers.
 Subject to rater errors and biases.
 If not done right can be a complete waste of time.
 Can be stressful for all involved.
performance appraisal

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performance appraisal

  • 1. Problems and ethics in performance appraisal Submitted by, S.Krithika.
  • 2.
  • 3. definition According to Newstrom, ” It is a process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance”.
  • 4. Process of performance appraisal Setting performance standards Communicating standards Measuring standards Comparing standards Discussing results Taking corrective standards
  • 6. problems  1. The halo effect: The halo effect is introduced when an overall impression of an individual is judged on the basis of a single trait.
  • 7.  2. Constant error: This error is a reflection on the trait of the rater. Some raters are, by nature, too liberal, others too strict and some tend towards rating most people in the middle.
  • 8.  3. Recency of events: There is a tendency of many evaluators to give much more weight to the recent behaviour of the candidate than the past behaviour.
  • 9.  4. The central tendency: It is the most commonly found error. It is the tendency of most raters to give average ratings to all or the center of the scale.
  • 10.  5. Errors of variable standards: It is quite possible that organisations follow different standards of performance. Some divisional heads may require much higher quality of performance than others.
  • 11.  6. Other miscellaneous biases: There may be some built - in biases in the minds of the rater, based upon his own perception of things, people and performances. Eg: A person may be rated higher because he is a 'nice' person or because of his seniority.
  • 13. Dictionary meaning  moral principles that govern a person‘s behaviour.
  • 14. Ethics involved in performance appraisal  Rewards, punishments and threats These should be used in a positive way. If they are negatively used, it can affect the morale of the employee. An appraiser should not be able to reward an employee that he/she likes more than another, when the other is more qualified.
  • 15.  Reliability and validity The appraiser should provide consistent, reliable, and valid information.  Standardization The performance appraisal process, forms, administration techniques, and ratings should be standardized so it affects all employees of the group. For example, if they provide one form or rating system for one employee, they must provide the same for another.  Confidentiality The feedback that the appraiser provides should be confidential. Leaking it to unnecessary employees is unethical
  • 16. advantages  Provide a record of performance over a period of time.  Provide an opportunity for a manager to meet and discuss performance.  Provide the employee with feedback about their performance.  Provide an opportunity for an employee to discuss issues and to clarify it.  Can be motivational with the support of a good reward and compensation.
  • 17. disadvantage  If not done appropriately, can be a negative experience.  Very time consuming especially for managers.  Subject to rater errors and biases.  If not done right can be a complete waste of time.  Can be stressful for all involved.