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Performance Appraisal Errors & Prevention Measures (Performance…
Performance Appraisal Errors & Prevention Measures
Performance Appraisal Errors
Halo Effect
Appraised on the basis of a perceived positive quality, feature or trait
Horn Effect
Appraised on the basis of a negative quality or feature perceived
Central Tendency Error
Rating all employees as average performers, as neither high nor low and follow the middle path
Leniency/Strictness
Rating all their subordinates consistently high or low
Primacy Error
Rater gives a greater weight to information received fist when appraising an individual performance.
Recency Effect
Ratings are influenced by the most recent behaviour ignoring the commonly demonstrated behaviours during the entire appraisal period
Rater/Personal Bias
Rater values or prejudices distorts the rating.
Stereotypes
Beliefs about different groups may be generalised
Spillover Effect
Present performance is evaluated much on the basis of past performance.
Contrast Effect
Tendency to rate people relative to others rather than against performance standards.
Prevention Measures
Adjusted rating scales
If rating scales are vague and rely on manager judgements instead of observable milestones, then chances of a biased rating are increased
.
Monitor
Monitoring and reviewing the ratings by managers, the management will be able to notice and address the performance appraisal bias made by managers.
Benchmarking & Calibration
Managers and supervisors meet to discuss how and why they rate performance the way they do. Ensures rating consistency across departments
.
Appraisal training
Provide training for supervisor and managers on the fundamentals of performance management, including the company’s philosophy and practices
360° Reviews
Ask several parties for their input and then use the results to gauge overall performance
Clear and defined performance standards
The use of clear performance standards help direct employee behavior, it also helps supervisors provide more accurate ratings
Year-round Journaling and feedback
Provide timely feedback, the accuracy of that feedback will be much better than an annual review