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Why performance appraisal may be distorted?

Why performance appraisal may be distorted?

When evaluators are positively lenient in their appraisal an individual’s performance is overstated while in the opposite case leniency error understates performance. The difficulty arises when we have different raters with different leniency errors making judgments.

What kind of distortions can happen in the process of performance appraisal?

Similarity error: When evaluators rate other people in the same way that the evaluators perceive themselves, they are making a similarity error. Low appraisal motivation: The evaluator may be reluctant to give a realistic appraisal. The tendency is more harmful than other pitfalls.

Why might a manager unintentionally distort performance ratings or the reasons used to explain an employee’s performance?

Unduly negative ratings: Sometimes supervisors deflate an employee’s performance rating because they believe the employee will benefit from a “push.” Other times they are attempting to subdue a troublesome employee, to use fear as a motivation to improve, to encourage a problem or marginal employee to leave, to develop …

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How can we minimize distortion in rating?

5 Best Practice Tips for Reducing Rater Bias in Performance Reviews

  1. Build Awareness of Rater Bias. Rater bias affects everyone, but it usually occurs on an unconscious level.
  2. Use Objective, not Subjective, Ratings.
  3. Reduce Reliance on Memory.
  4. Implement 360 Degree Feedback Systems.
  5. Carefully Monitor Performance Feedback Data.

What are the most common errors in performance appraisal?

It is possible to identify several common sources of error in performance appraisal systems. These include: (1) central tendency error, (2) strictness or leniency error, (3) halo effect, (4) recency error, and (5) personal biases.

What are the advantages of performance appraisal?

Performance appraisal allows you to provide positive feedback as well as identifying areas for improvement. An employee can discuss and even create a developmental (training) plan with the manager so he can improve his skills. It motivates employees if supported by a good merit-based compensation system.