Definition of Limitations Performance Appraisal

Some factors are found to be distorting the performance appraisal. Such factors that can distort appraisals are:

Leniency Error

Halo Error

Similarity Error

Central tendency

Inappropriate Substitutes

Leniency Error

It is the performance appraisal distortion cause by evaluating employees against one’s own value system.

Halo Error

The halo error occurs when one is rated either extremely high or extremely low on all factors based on a rating one or two factors.

It is the tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits.

Similarity Error

When evaluators rate other people in the same way that the evaluators perceive themselves, they make a similarity error. That means they project self perceptions onto others. This error can be washed out if the same rater apprises all employees in the organization

Central Tendency

It is the tendency of a rater to give average ratings. Central tendency occurs when a rater refuses to use the two extremes

Inappropriate Substitutes for Performance

It is the unusual job that has an absolutely clear performance definition and direct measures for apprising the incumbent.

Student Activity

Prepare a note, describing relationship between job analysis and performance evaluation

Collect the Performance Appraisal formats of different companies and analyse them.

Prepare a model Performance Appraisal form for a specific organization.