Advantages and Disadvantages of Performance Appraisals

There seems to be an ongoing debate as to the value of doing employee performanc

e appraisals. Anyone who has given or received a performance appraisal could a
rgue vehemently as to the effectiveness and sensibility of doing them.
So what is a performance appraisal?
A performance appraisal is an evaluation of job performance over a period of tim
e. It is basically an annual report card on an employee and how they performed
over the prior year.
Unfortunately not all performance appraisal processes are the same and some are
designed to not only fail, but to create a negative experience for both the empl
oyee and the manager.
So why do organizations do performance appraisals?
There are different schools of thought on this. Some organizations do performan
ce appraisals out of their understanding of obligation to perform the dreaded ta
sk. Some do it so they have a piece of paper in the file. But successful organ
izations have learned to do them strategically as part of a larger performance m
anagement process.
Advantages of doing performance appraisals:
They provide a record of performance over a period of time.
They provide an opportunity for a manager to meet and discuss performance with a
n employee.
Provide the employee with feedback about their performance and how they complete
d their goals.
Provide an opportunity for an employee to discuss issues and to clarify expectat
ions with their manager.
Offer an opportunity to think about the upcoming year and develop employee goals
.
Can be motivational with the support of a good reward and compensation system.
Disadvantages of performance appraisal
If not done appropriately, can be a negative experience.
Are very time consuming, especially for a manager with many employees.
Are based on human assessment and are subject to rater errors and biases.
If not done right can be a complete waste of time.
Can be stressful for all involved.
Finally a performance appraisal is only as good as the performance management sy
stem it is part of. If an organization merely does performance appraisals for th
e sake of doing them, they are wasting their time. But if they strategically inc
orporate performance management into their strategic plan to implement business
goals, they will provide a process to accomplish those goals.
Kathy Clark is an MBA who is passionate about helping small business owners see
their vision come to life through business development and growth. She writes fo
r, and is the founder of The Thriving Small Business.. Article on Performance Ap
praisal, Strategic Plan, Performance Management, Business Goals, Employee Goals,
by Kathy Clark
As Performance appraisal is an objective, systematic and periodical evaluation o
f staff performance, it therefore enhance the reliability of the company staff se
lection/ assessment procedure and policy
Staff is more motivated to learn and grow under this performance appraisal metho
dology.
Enable the assessment of the present and future potential of staff and determine
s the training and development needs
Enable management in better decision making and planning of manpower ensure the
effective and judicious use of resources.
It acts a tool for job enrichment, promotion, salary increment, career planning,
training and development and manpower planning.

I think you ask too much from one person. You will probably get 10 on each from
different people; but, maybe not from one individual. This question sounds a lit
tle pushy. May be you can re-phrase it. Something like: Can anyone tell me some
disadvantages/advantages of performance appraisals of staffs in an organization?
I need to have a list of 10 item for each; if you can be of help I'd appreciate
it alot.
Read more: What are the advantages and disadvantages of performance appraisals o
f staffs in a organization? please give me more than ten on each. | Answerbag ht
tp://www.answerbag.com/q_view/165781#ixzz0zPZL0hwp

I went to a conference earlier this year and rode the airport shuttle with one o
f the conference instructors. When he learned that I was also attending the c
onference we began talking about all sorts of things but performance management
(PM) and more specifically performance appraisals (PA) came up. He had very s
trong feelings about why he thought performance appraisals were a waste of time
and ultimately added no value to the employee or organization.
Most anyone who has managed people or been managed by someone has experienced th
e sometimes stressful, time-consuming process of performance management. In t
heory I agree that organizations that do not have strong performance management
systems can have a negative effect both on employees as well as their managers.
However, a well designed and consistently managed performance management proce
ss can be rewarding for both the employee as well as the manager.
So what are the advantages and the disadvantages?
Disadvantages
1. Time Consuming
It is recommended that a manager spend about an hour per employee writing perfor
mance appraisals and depending on the number of people being evaluated it can ta
ke hours to write the a department s PA but also hours meeting with staff to revie
w the PA. I ve know managers who had 100 plus people to write PAs on.
2. Discouragement
If the process is not a pleasant experience it has the potential to discourage s
taff. The process needs to be one of encouragement, positive reinforcement and
a celebration of a year s worth of accomplishments. It is critical that managers d
ocument not only issues that need to be corrected but also the positive things a
n employee does throughout the course of a year and both should be discussed dur
ing a PA.
3. Inconsistent Message
If a manager does not keep notes and accurate records of employee behavior they
may not be successful sending a consistent message to the employee. We all strug
gle with memory with as busy as we all are so it is critical to document issues
(both positive and negative) when it is fresh in our minds.
4. Biases
It is difficult to keep biases out of the PA process and it takes a very structu
red, objective process and a mature manager to remain unbiased through the proce
ss. See Performance Appraisal Rater Errors Article.
Advantages
1. Performance based conversations
Managers get busy with day-to-day responsibilities and often neglect the necessa
ry interactions with staff that provide the opportunity to coach and offer perfo
rmance feedback. A performance management process forces managers to discuss pe
rformance issues. It is this consistent coaching that affects changed behaviors
.
2. Targeted Staff Development
If done well, a good performance management system can be a positive way to iden
tify developmental opportunities and can be an important part of a succession pl
anning process.
3. Encouragement to staff
Performance Appraisals should be a celebration of all the wonderful things an em
ployee does over the course of a year and should be an encouragement to staff. T
here should be no surprises if issues are addressed as they arise and not held u
ntil the annual review.
4. Rewards staff for a job well done
If pay increases and/or bonuses are tied to the PA process staff can see a direc
t correlation between performance and financial rewards.
5. Underperformers identified and eliminated
As hard as we try it is inevitable that some employees just won t cut the mustard
as they say. An effective PA process can help identify and document under perf
ormers allowing for a smooth transition if the relationship needs to be terminat
ed.
6. Documented history of employee performance
It is very important that all organizations keep a performance record on all emp
loyees. This is a document that should be kept in the employee s HR file.
7. Allows for employee growth
Motivated employees value structure, development and a plan for growth. An effe
ctive performance management system can help an employee reach their full potent
ial and this is positive for both the employee and manager. A good manager takes
pride in watching an employee grow and develop professionally.
Organizations should take a global look at their performance management system a
nd have very objective goals that are tied to strategic initiatives and the perf
ormance management process. Successful organizations have learned the secret to
this and while not always perfect, a constant striving to improve the process c
an help organizations reach their Vision.

Performance appraisals are usually part of a yearly review process in which a su

pervisor reviews the job performance, goal completion and projects accomplished
by an employee. While the structure of performance appraisals offers a way for g
iving constructive feedback to employees, which in turn can be used as a reward
or a motivational tool, there are downsides to traditional performance appraisal
s.
One Sided Input
Traditional performance appraisals involve a supervisor and supervisee, both of
which have limited perspectives. As with any situation, limited perspectives lea
d to a limited amount of information by which to judge performance.
If a manager is busy supervising several people, as well as tasks and other proj
ects, then there will be limited time to take in the full scope and practice of
the performance of the supervisee. As an alternative, many industries today are
utilizing 360-degree feedback, which takes into account the relationships that a
n employee has with peers, customers, clients, supervisors and those whom the su
pervisee is responsible for overseeing.
Forms Only Give Quantitative or Qualitative Data
Many times, feedback forms that are utilized in performance appraisals only use
quantitative or qualitative measures, but not both. Quantitative appraisals main
ly measure numbers, such as how many projects, how many were on time. While this
is important, there are other things to take into consideration.
Qualitative benchmarks involve the completion of personal or professional goals
and the stories of how the supervisee utilized opportunities to lead by example
and proactively implement the values and mission of the organization. Listening
to the stories of what has happened over the past year and looking at numbers an
d outcomes will result in a clearer picture of what the value of the employee is
to the organization.
Once-a-Year Raises
Performance appraisals are usually done once a year and are connected to an incr
ease in salary. This is a disadvantage in that supervisees generally live in fea
r and experience anxiety when their review time comes up. Having more consistent
interaction when it comes to feedback between management and supervisees can he
lp reduce the fear, anxiety and wondering about a raise.
Furthermore, the employee naturally will want to bargain for more money focusing
on their strengths and the management will want to emphasize the constructive a
reas of performance evaluation in order to keep from giving raises, since money
is a limited resource in any organization. This adds to the stress of the review
.

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Advantage And Disadvantage Of Performance Appreaisal

Advantages and Disadvantages of Performance Appraisals
There seems to be an ongoing debate as to the value of doing employee performanc
e appraisals. Anyone who has given or received a performance appraisal could a
rgue vehemently as to the effectiveness and sensibility of doing them.
So what is a performance appraisal?
A performance appraisal is an evaluation of job performance over a period of tim
e. It is basically an annual report card on an employee and how they performed
over the prior year.
Unfortunately not all performance appraisal processes are the same and some are
designed to not only fail, but to create a negative experience for both the empl
oyee and the manager.
So why do organizations do performance appraisals?
There are different schools of thought on this. Some organizations do performan
ce appraisals out of their understanding of obligation to perform the dreaded ta
sk. Some do it so they have a piece of paper in the file. But successful organ
izations have learned to do them strategically as part of a larger performance m
anagement process.
Advantages of doing performance appraisals:
They provide a record of performance over a period of time.
They provide an opportunity for a manager to meet and discuss performance wi
th an employee.
Provide the employee with feedback about their performance and how they comp
leted their goals.
Provide an opportunity for an employee to discuss issues and to clarify expe
ctations with their manager.
Offer an opportunity to think about the upcoming year and develop employee g
oals.
Can be motivational with the support of a good reward and compensation syste
m.
Disadvantages of performance appraisal
If not done appropriately, can be a negative experience.
Are very time consuming, especially for a manager with many employees.
Are based on human assessment and are subject to rater errors and biases.
If not done right can be a complete waste...