Challenges in Conducting Performance Appraisal

CHALLENGES IN
CONDUCTING
PERFORMANCE
APPRAISAL
By Sirish Shrestha
MBA 3rd Semester
2019 Intake
INTRODUCTION
Originally, appraisals focused solely on whether the employee deserved a raise or a pay cut.
Later, appraisals were used for setting goals and creating a road map for employee
improvement. The challenge in organization is find a way to surmount appraisal issues list
make the process effective so the company gets something for all the time managers and
employees put in.
CHALLENGES IN PERFORMANCE APPRAISAL PROBLEMS

1. Don’t assess actual performance
Most of the assessment that managers complete focuses on “the person,” including
characterizations of their personal “traits”, knowledge or behaviors . While these factors
may contribute to performance, they are not measures of actual output.
2. Lack of Effectiveness Metrics

Many accept that the goals of the process are to recognize results, provide feedback to
address weaknesses, determine training needs, and to identify poor performers.
Unfortunately, rarely do process owners ever measure their processes’ contribution to
attaining any of these goals. Instead, the most common measure relating to performance
appraisal is the percentage completed.
3. Lack of Accountability
Managers are not measured or held accountable for providing accurate feedback. One
firm attempting to remove a troublesome employee found that the manager had rated the
individual the highest within the department and awarded them employee of the year.
4. Disconnected From Rewards

In too many organizations, getting a merit raise, bonus, or promotion is completely
disconnected from an employee’s performance appraisal scores. When there is a weak
link, employees and managers are not likely to take the process seriously.
5. No Intergration
The process is not fully integrated with compensation, performance management,
development, or staffing (internal movement). A lack of integration and coordination
leads to duplication and missed opportunity.
6. No Comprehensive Team Assessment
Although individuals on the team are assessed, there is no simultaneous overall

assessment of the team. Often contingent workers on the team are not addressed at all.
7. Managers are not Trained
In most organizations, managers are not trained on how to assess and give honest
feedback. If the process includes a career development component, it is even more likely
that managers will not know how to enhance the career path of their employees.
8. Gaming the System
Often managers artificially rate individual employees to save money or to keep
employees from becoming visible for promotion. Some selfishly give a score just below
that required for a pay increase, while others give scores just above the point where they
would be required to take disciplinary action.
9. Corporate Culture Issues
Subjective appraisals can restrict cultural change in organizations. In some organizations,
there are cultural norms and values that influence performance appraisals. For example,
in one organization new hires were automatically given an average rating for their first
year, regardless of their actual performance. One top performing hire I knew abruptly
quit after receiving this cultural gift.
10. Inconsistency Across Managers
Some managers are naturally “easy raters” while others are not. As a result, employees
working under easy managers have a better chance of promotion due to their higher
scores. In firms that rely heavily on the narrative portion of the assessment, having a
manager with poor writing skills may hamper an employee’s career. Without
“benchmark” numbers to set as a standard, inconsistency is guaranteed in large
organizations.
11. Managers Don’t Know The Employees
Managers of large and global organizations, as well as newly hired and “transferred in”
managers may be forced to do appraisals on employees they barely know. Recently
promoted managers may be forced to assess their former friends and colleagues.
Following a merger, managers are likely to be confused about whether to focus on the
whole year or just “post-merger” work.
12. High Anxiety
Because the process is so subjective and no benchmark performance numbers are set in
advance, uncertainty can cause many employees high levels of anxiety weeks before the
process. Managers may also be anxious because of the uncertainty related to the an
employee’s reaction. I know one employee who sincerely thought she was going to be
fired prior to her assessment but ended up being the highest rated employee on the team.
Employees should have an accurate idea of their assessment long before any meeting is
scheduled.

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CHALLENGES IN

CHALLENGES IN PERFORMANCE APPRAISAL PROBLEMS

2. Lack of Effectiveness Metrics

4. Disconnected From Rewards

6. No Comprehensive Team Assessment

Although individuals on the team are assessed, there is no simultaneous overall

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