• Leniency Error: Every evaluator has his or her own value system which acts as a standard against which appraisals are made. Some evaluator mark high and others low. Positive leniency error and negative leniency error. If all individuals in an organization are appraised by the same person there will be no problem.
• Halo Error: Tendency to rate high or low on all factors due to the impression of high or low rating on some specific factor.
• Similarity Error: When evaluator rate other people in the same way that the evaluators perceive themseves, then they are making similarity error.
• Low Appraiser Motivation: What are the consequenses of appraisa? Employee can be rewarde, not rewarded, punished , if evaluator knows, may not give the realistic appraisal.
• Central Tendency: Reluctance to make extreme ratings in either direction; the inability to distinguish between and among ratees; a form of range restriction. Central tendency error prone rater rates all employees as average.
• Inappropriate Substitutes for Performance: In many jobs it is difficult to get consensus on what is a good job, and it is even more difficult to get agreement on what criteria will determine performance. As a result appraisal is frequently made by using substitutes for performance; criteria that, it is hoped, closely approximate performance and act in its place.
Suggestions for Improved Performance Appraisal:
i) Behaviorally Based Measures
ii) Combine Relative and Absolute Standard
iii) Ongoing Feedback
iv) Multiple Raters
v) Selective rating, Trained appraisers, Peer evaluations, Post appraisal interview, Rewards to accurate appraisers.
Who should do the Appraising?
• The immidiate supervisor
• Peer appraisals
• Rating committees
• Self ratings
• Appraised by subordinates
• 360 –degree feedback- ratings are collected ”all around” an employees, from supervisors, subordinates, peers and internal & external customers- a complete survey on individuals