In these times of increased universal competition, rapidly changing tools and services, and increased importance of customer satisfaction, it is vital that companies should employ personnel that have the necessary skill base and make them feel comfortable in making suggestions for the betterment of the company, for their position, and enjoy their work. Despite the advancements made in technology, human capital is still an essential ingredient in work places.
That is why many companies, both established as well as up-and-coming are investing in the human resource departments of their companies. Research has shown that employees’ satisfaction links to the positive proceeds of companies. Due to that, the need to appraise employees or rather measure their behavior at the work places, of which covertly or overtly impacts the performance of the whole company, has been given priority by companies that are keen on employees’ improvement and growth.
This is sometimes done between a specific duration, as befit a particular working place, as a measure of the reality on the ground and as concern the performance of the employees. It could even be a continuous exercise, which depends on the number of employees, in relation to the individuals concerned with evaluating them. An increasing number of businesses and their employees are aware of the benefits that can be derived from such evaluations. This is especially true when the performance appraisals are conducted in a productive and informative manner with both parties’ input. The Problem
Some adverse side effects of appraisal systems, if poorly conducted, which include: Encouraging negative rivalries and hard feelings among workers who feel they are competing for a limited pot of merit money; Sabotaging company attempts to create high-performing teams is another issue; along with portraying of the supervisor as a “superior”, whose only responsibility is to judge every employee’s performance. Also, another problem includes overemphasis on work factors that can be easily observed and quantified, and overlooking other “good citizen” behaviors of employees that are highly valued.
(Newstrom and Bittel 2002) In addition to this, not all companies conduct regular performance appraisals for their employees. And when they do, they normally do it for improvement of disciplinary problem. Some employers feel uneasy doing the evaluations, and most supervisors’ biggest fear is that an employee will dislike being judged. Nearly all appraisers have a tendency to let one favorable or unfavorable incident or even trait color for their judgment of an individual, as a whole introducing a new range of biases.
Examples of these could be placing too much weight on one good or poor factor. Not allowing an employee’s improved performance to outshine a poor record in a prior appraisal period, or to rely heavily on what happened a week or a month ago. Others let an individual’s opposing personality that affect the appraisal of his or her good work. And stereotyping, favoritism and grouping can all lead to a not so positive outcome of employee performance evaluations.
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