Introduction to Performance Management

Performance management is a process of ensuring the organizational goals are achieved more competently and productively within the organization. Performance management attempts to increase operational performance by aligning internal and external objectives with corporate goals.

Armstrong (2014, p.391) define Performance Management as “A systematic process for improving individual, team and organizational performance” and “The continuous process of improving performance by setting individual teams and goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing progress, and developing the knowledge, skills and abilities of the people”

The term “Performance management” is commonly used in the sector of HR since the early 1990s. It is now totally agreed that performance management is a natural process of management that focuses on managing individual to align with organizational goals by employee defined measures, skills, competency requirements, development plans, and results in delivery which helps to keep employees motivated. This will assist the employer to identify employee degradation, complications and take appropriate measure to overcome the situation(Armstrong and Baron, 2005).

Figure 1.0: Evolution of performance management

 

Source: (Bhattacharyya,2011).

Performance Management Cycle

Effective performance management cycles align the efforts of managers or supervisors and workers with organizational goals (Russell and Russell, 2009). Promote consistency in performance appraisal and encourage all workers to perform at their best. This method ought to be applied fairly and transparently. Many employers or managers now view performance management as an ongoing cycle of activities that links the organization's culture, business goals and strategies to individual performance and contributions (John Mattone,2013). 

Figure 2.0: Stages of performance Management development Cycle

Source: (Harvard Business Review,2017)

According to Harvard Business Review (2017) figure 2.0 described as, Planning - Organization employees are set with SMART objec­tives which aligned to one or more company goals. Developing – Expand the employees’ current expertise and develop a plan to enhance new skills and knowledge to get the best performance out of them. Monitoring and Performing -continually measure performance and provide continuous feedback on manageable methods to help and support them to achieve their goals. Reviewing - The review is to assess the performance of an employee or team based on goals, criteria, and standard that agreed upon during the planning phase by using multiple tools. Once identified, the focus will be on areas that need to redevelop, and cycle again retunes to the planning phase. Rewarding - If all goals are achieved, it’s time to reward employees. By rewarding employees, managers recognize the contribution of employees to the organization and motivate them to engage with more objectives.

References

• Armstrong, M and Taylor, S. (2017) Armstrong’s Handbook of Human Resource Management Practice. 13th ed. London: Kogan Page, Limited.
• Aguinis, H., 2013. Performance Management. 3rd ed. New Jersey: Pearson.
• Armstrong, M. and Baron, A., 2005. Managing Performance. 1st ed. London: CIPD.
• Aguinis, H., 2019. Performance Management. 3rd ed. New Jersey: Pearson.
• Bhattacharyya, D., 2011. Performance Management Systems and Strategies. 1st ed. India: Pearson.
• Business, H., 2017. Hbr Guide To Performance Management (Hbr Guide Series). Harvard Business Review Press.
• Mattone, J., 2013. Powerful Performance Management. 1st ed. New York: AMACOM.
• Performance Reviews into Performance Partnerships. 1st ed. United States: ASTD.
• Russell, J. and Russell, L., 2009. Ultimate Performance Management: Training to Transform Performance Reviews into Performance Partnerships. 1st ed. USA: ASTD Press.

Benefit and Impediments of Performance Management

An efficient and good performance management system is always striving towards a comprehensive improvement in organizational performance (Cardy,2004). High-grade performance management helps assure that the overall goals of all goals are met (Ulrich and Chandler,2016). The benefits of a performance management system will contribute to all aspects, whether it is the benefits of the organization, the benefits of the employees, or the benefits of the manager. The performance management system has a positive impression on employee job satisfaction and loyalty. Performance goals require development goals and evaluation goals. Good and effective performance management requires clear objectives and regular assessment of each individual's performance, which helps determine the training and development plans that employees need (Buchner,2007).

A reliable performance management system, it should provide the culminate benefits for Employee and Employer both relating to each other's objectives. Once it met the align expectation it will lead to Organization success.

According to Russell and Russell (2009); Mattone (2013) the benefits to employees and employers are as follows.

Employee Benefits

• The performance management system provides a wealth of learning opportunities, provides leadership attitudes, and helps employees grow their careers.

• The performance management system ensures that each employee understands the employee's expectations and determines whether the employee has the skills and support needed to achieve the desired outcome.

• Performance management systems help employees self-assess, improve opportunities, define career paths, and help employees achieve job satisfaction.

• The performance management system includes a reward mechanism that, in the form of rewards or performance bonuses motivate employees to work better and achieve organizational goals.

Employer Benefits

• Performance appraisal helps to record payroll activities.
• They provide performance feedback to employees.
• Performance appraisal helps identify “good” and “bad” performers.
• They help document personnel decisions such as promotion and discipline.
• They assist management in making decisions to retain or terminate.
• Performance assessment helps determine training needs.
• They assist in staff planning, including staffing.

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Impediments of Employee Performance Management

Waal and Kourtit (2013) provides the following impediments in performance management systems

Lengthy and complicated - Manager's advised to spend hours with each employee to assess their performance. The organization consists of a large number of people it will take a long time to evaluate Performance appraisals for the entire department. Once identified employee difficulties and errors, lengthy meeting hours will need to address the matters.

Employees may resign due to unfair results - If an employee performs well and then feels that he/she has been unfairly assessed, then his/her motivation to stay in the company is minimal. Even if the employee does not leave the company, he/she may become isolated.

Incorrect or misleading information may affect the review - Appraisal without involving Performance data will be difficult to correctly identify the state of the employee. The manager or co-worker may provide false or misleading performance information and make the assessment unfair.

Employees may lose self-confidence - If employees observe that they are being unfairly evaluated, they are likely to lose self-esteem and that will lead to resenting the management and the organization.

The poor standard will make the process unfair - If there are no accurate performance standards are aligned to employee objectives, an employee will be in a conflict position justifying excellent vs. poor performance

Insufficient management expertise - Although the company's management gave enough knowledge and time, they often have some weaknesses, and when the rules are implemented in reality, the negative aspects will arise. The main reason for this is due to a lack of management engagement and management knowledge.

Conclusion

Benefit and Impediments are had to be considered when designing an accurate employee performance assessment, lowering Impediments direct to decreasing the risk of employee disappointment. Successful Employee performance management will lead an organization to achieve its goals empowering with coworkers.

References

• Buchner, T. W. 2007. Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International.
• Cardy, R., 2004. Performance Management: Concepts Skills and Exercises. 1st ed. United Kingdom: Routledge.  
• Mattone, J., 2013. Powerful Performance Management. 1st ed. New York: Amacom
• Russell, J. and Russell, L., 2009. Ultimate Performance Management: Training to Transform Performance Reviews into Performance Partnerships. 1st ed. USA: ASTD Press. 
• Ulrich, D. and Chandler, T., 2016. How Performance Management Is Killing Performance—And What to Do About It. 1st ed. CA: Berrett-Koehler Publishers.
• Waal, A., Kourtit, K., 2013. Performance measurement and management in practice: Advantages, disadvantages and reasons for use. Int J Productivity & Perf Mgmt 62, 446–473

Method of Employee Performance Evaluation

Employee Performance Evaluation

Performance evaluation is a process of systematic assessment of individual performance. It applies as a development tool for the advancement of employee and organization (Reynolds and Scott, 2009). Performance is measured by using factors such as job knowledge, quality and quantity of output, initiative, leadership, administration, dependability. These factors must pre-defined when setting objectives and evaluation should be limited to past and implied performance. (Wermers and Fischer, 2012).

Employee performance assessment can be divided into two main categories as systematic and non-systematic assessment. Within the non-systematic assessment, an employee will be asset continuously by a superior throughout the work process (Alain, 2013). Systematic assessment is a set organizational method carried with a formal basis on employee presumed expectation, and actual performance (Lifflander and Pratt, 2015).

The objective of Performance Appraisals Methods

As discussed by Tan and Falcone (2013), the objective of this performance assessment is to encourage employees to develop and enhance the overall efficiency of our organization by:

• Identify particular areas of accomplishment.

• Encourage to improve performance.

• Well-defined the goals and objectives of the organization, that they are often tailored to our employees’ specific areas of responsibility.

• Developing reciprocally established, employee-focused goals and objectives.

• Recognize areas of most excellent, effectiveness and extra improvement.

• Development interaction between employers and employee.

Criteria for assessing the performance

Bernardin and Russell (1998) has recognized the following seven principles for evaluating the performance of an employee.

1. Quality - The value of the commitment done by the individual, team. This can incorporate the quality, interaction, and deliverables of task completion.

2. Quantity – Work quantity handled by the Employee in the origination. This can be defined and undefined work.  

3. Timeliness – Assess Employee Have completed their objectives within a period of time defined.

4. Interpersonal Impact - The quality and ways that a person uses to interact correctly with others. In the business world, the term refers to the ability of employees to work with others while performing their work.

5. Cost-Effectiveness - Cost-benefit analysis is a form of economic analysis that compares the relative costs and outcomes of different action plans. This gives financial value to the measurement of effectiveness.

6. Need for Supervision – How an employee can be worked without any interaction of senior person and the amount of supervision needed for work.

7. Community Service – How Employee will interact with helping others in the work environment. This can more volunteer work.

Traditional and modern performance appraisal methods

Organizations collaboratively use different performance assessment methods to accomplish their aligned set of objectives, it has advantages and disadvantages (Patrick Alain,2013).

According to Sayles and Strauss (1977), performance review methods are dividing into two categories: Traditional methods and modern methods. Considering some methods of performance assessment are complex and call for sufficient knowledge of important techniques. As a result, various organizations practised the traditional method while evaluating their employee's job performance. Some situation traditional method will lead to discontented decisions.

Table 1.0: Performance Appraisal Methods

Performance Appraisal Methods
Traditional	Modern
Ranking method	Management by Objective (MBO)
Paired Comparison	360-Degree Feedback
Grading Scale	Assessment Center Method.
Checklist method.	Behaviorally Anchored Rating Scale (BARS)
Easy evaluation method	Psychological Appraisals.

Source: (Sayles and Strauss, 1977)

Negative results of Performance Evaluation

As identified Holpp (2011), Some employees may feel discouraged, impassioned, and unsympathetic about negative assessments, especially if they disagree with the content of the criticism and believe they are doing a proper job. In this case, employees may have no reason to change their future behaviour and believe that the current level of performance is acceptable. This can lead to poor performance and cause a dissatisfied employee who may be less concerned about his future performance levels. If an individual shows a persistent negative attitude towards the company, then this type of employee has the potential to affect morale and the productivity of colleagues.

Conclusion

By selecting a proper evaluation method, we can deliver the most distinguished judgement of an employees work performance. Better to use multiple techniques for evaluation purpose, it will provide a broader understanding of the areas in which employees need to improve and the steps to support employee growth. 

Using an Evaluation Method will Standardize the review system of an organisation. The employees will get motivated and experience the expression that organisations carried out a fair evaluation for all the coworkers.

References

• Alain, P., 2013. The Quick and Easy Performance Appraisal Phrase Book. 1st ed. USA: Career Press.
• Bernardin, J. and Russell, J., 1998. Human Resources Management: An Experiential Approach. 2nd ed. Boston: McGraw-Hill Education.
• Holpp, L., 2011. Win-Win Performance Appraisals: What to Do Before, During, and After the Review to Get the Best Results for Yourself and Your Employees: What to Do Before, During and After the Review. 1st ed. USA: McGraw-Hill.
• Lifflander, J. and Pratt, S., 2015. Analyzing Complex Appraisals for Business Professionals. 1st ed. United States: McGraw-Hill.
• Manasa, K., & Reddy, N. (2009). Role of Training in Improving Performance. The IUP Journal of Soft Skills, 3, 72-80
• Reynolds, D. and Scott, J., 2009. Handbook of Workplace Assessment: Evidence-Based Practices for Selecting and Developing Organizational Talent. 1st ed. USA: Pfeiffer.
• Sayles, L. and Strauss, G., 1977. Managing Human Resources. 1st ed. California: Prentice-Hall.
• Tan, W. and Falcone, P., 2013. The Performance Appraisal Tool Kit. 1st ed. United States: AMACOM.
• Wermers, R. and Fischer, B., 2012. Performance Evaluation and Attribution of Security Portfolios. 1st ed. USA: Academic Press.

Traditional and Modern Performance Appraisal Methods

Traditional Appraisal Methods

Traditional performance appraisal methods are comparatively old. These methods are all approaches to the past, concentrating only on past performance (Dessler, 2015).

Ranking method - Identity of the most manageable techniques of performance evaluation. This approach will be sorted employees from best to worst in a group. The simplicity of this approach is masked by the negative impact of assigning “worst” and “best” ratings to employees. This kind of differentiation can lead to negative emotions within the group and negatively affect performance (Dessler and Gray, 2011).

Paired Comparison – Method follows a role model of pairs, employee to employee values are compared with each other. The formula is used to calculate the number of comparisons (N x (N-1) / 2). When you have different options that are prominently separated, it is often challenging to determine the best option (Venclova, Salková and Kolackova, 2013).

Grading Scale – This strategy surveys the level of specific characteristics required for the activity, for example, unwavering quality and steadfastness. The degree is usually reliability and dependability. The degree is normally estimated on a scale (Excellent, Good, Average, Poor). An employee will be evaluated according to these grades and assigned to the level that best describes their performance (Cardy, Balkin, Gómez-Mejía, 2014).

Checklist method - This is the most straightforward strategies for assessing employee performance. Under this, a checklist is prepared by the HR manager and delivered to the scorer. Checklist will include a rundown of inquiries (describes the employee's behaviour and performance) and the rater needs to answer them in just 'YES' or 'NO' structure (Rothwell, 2012).

Easy evaluation method - The method requires to write a detailed description of the article's approach to the performance of the employee's immediate Manager. This article focuses on the various strengths, weaknesses, attitudes, and behaviours of individuals concerning job responsibilities (Shaout and Yousif,2012).

Modern Appraisal Methods 

Modern methods are developed to improve traditional methods. It attempts to reinforce the shortcomings of the old methods, such as fundamentality and subjectivity. The following describes typical modern methods (Goel, 2012).

Management by Objective (MBO) - MBO Identified as a less time consuming and cost-effective method. Objectives have been set to an employee by the manager by agreeing with each other. This method helps employees to perform better as they understand their goals well and know the quality and amount need to deliver.  This rate as a fair assessment because employees know the likelihood of measured (Pathak, 2010).

360-Degree Feedback – This approach involves getting feedback about employees from everyone who interacts with him during business hours to understand his views on himself and his responsibilities in the workplace (Griffith and Lucia, 2009). This is very beneficial for start-ups because it is the most reliable way to assess the overall performance of employees and understand their best practices in behaviour, personality and attitude. Although it is a bit time consuming, it is cost-effective and accurate. It avoids prejudice due to various viewpoints, so comments are not affected by one's preference (Harvard Business School Press, 2009).

Assessment Center Method – This method was first used by the United States and the United Kingdom in 1943. The assessment center is a central location where managers can be brought together, and trained observers assess their participation in work-related activities (Darling and Adamson, 2014). It focuses on situational exercises like planning organization ability, self-confidence, stress resistance, energy level, decision-making ability. It provides the employer with an insight into the personality of the employee (Certo and Certo, 2014).

Behaviorally Anchored Rating Scale (BARS) - Smith and Kendall introduced the method of BARS in 1963 to the consideration of researchers concerned for reliability and validity of performance evaluations. This method is more informative than simplistic characters. Scale points are defined by demanding (effective or ineffective) behaviors of the employee. The person rate employee will appear as an observer rather than a judge (Mathis and Jackson, 2011).

Psychological Appraisals - Method focused on employees expected performance than past performance. Analyzation carries out through comprehensive Interviews, psychological tests and investigation of other evaluations. It gives higher consideration to employee’s emotions, intelligence, motivation and other personal characteristics that influence performance. IT will encourage smart younger employees who may have considerable potential, though the method is slow and expensive. Quality of assessments will depend on the psychologist skillset (Holpp, 2011).

The organization which I work is a multinational organization and a pioneer in education. The organization used a mixed appraisal methodology to appraise the employee and it will maintain continuous communication with team leaders and managers. Once employees meet their expectation they were recognized and motivated through a rewarding process carried out once every quarter of a year.

The employee will evaluate under multi-rater feedback as Self-appraisal, managers appraisal and peer appraisal.

An employee will have full transparency of the evaluation process and can disagree on any rating that has received. Once disagreed, the reevaluation process will start. This process will carry out until both parties are satisfied with the outcome.

References 

• Dessler, G., 2015. Fundamentals of Human Resource Management. 5th ed. New York: Pearson. 
• Dessler and Gary, 2011.Human Resource Management,13th ed, Prentice-Hall. 
• Venclova, K., salková, A. and Kolackova, G.,2013. Identification of Employee Performance Appraisal Methods in Agricultural Organizations. In: 2013. [Online]. Available at: DOI:10.7441/joc.2013.02.02. 
• Mathis, L. R., & Jackson, H. J. ,2012. Human Resource Management: Essential Perspectives.1st ed.USA: South-Western Cengage Learning. 
• Beatty, J. R., & Haas, R. W.,1996. Using peer evaluations to assess individual performances in group class projects. Journal of Marketing Education, 18(2), 17-28. 
• Rothwell,J. ,2012. Encyclopedia of human resource management set-3 volumes. 1st ed. New York: Wiley. 
• Shaout, A. and Yousif., 2012. M. K. Performance Evaluation – Methods and Techniques Survey. 
• Goel, D., 2012. Performance Appraisal and Compensation Management. 2nd ed. New Delhi: PHI Learning Ltd. 
• Pathak, H., 2010. Organisational Change. 1st ed. India: Pearson India. 
• Griffith, R. and Lucia, A., 2009. The Art and Science of 360-Degree Feedback. 2nd ed. SAN Francisco: Pfeiffer. 
• Holpp, W., 2011. Win-Win Performance Appraisals: What to Do Before, During, and After the Review to Get the Best Results for Yourself and Your Employees: What to Do Before, During and After the Review. 1st ed. USA: McGraw-Hill.
• Cardy, R., Balkin, D. and Gómez-Mejía, L., 2014. Managing Human Resources. 8th ed. USA: Pearson.
• Harvard Business School Press, 2009. Performance Appraisal: Expert Solutions to Everyday Challenges. 1st ed. United States: Harvard Business Review Press.
• Certo, S. and Certo, T., 2014. Modern Management: concepts and skills. 14th ed. USA: Pearson.
• Darling-Hammond, L. and Adamson, F., 2014. Beyond the Bubble Test: How Performance Assessments Support 21st Century Learning. 1st ed. USA: Jossey-Bass.
  

Key Elements of Effective Employee Performance Management Review

The Employee Performance appraisal is critical, once when maintaining employee aligned with individual goals and the company's overall goals (Harvard Business School Press, 2009). Managers can use a respectively beneficial approach to assessing. As a result of reviews usually ascertain future career paths and performance growth, managers need to spend enough time preparing for them. A conducive review with clear expectations, acceptable examples, effective study, and expected action steps inspire employees to complete their assigned tasks (Johnson, 2004, p.83).

According to Coleman (2009), Implementing a Performance management system will not resolve or directly enhanced any employee-related performance issues. The organization must invest in resource to ensure that managers and other employees have the system responsible for the PMS. Unless this will be considered as a compliance activity, the system has identified several elements provide an effective and useful performance assessment for managers and their employees. Use of the following four items helps to maintain high morale and plan for greater business success (Poole, 2013).

Preparation:

A proper plan will lead to a comprehensive performance review. By reviewing previously conduct appraisals and objective setting can get a clear view of employee’s success and areas needed to improve, these findings will help to guide the review and help convey the expectations have for the employees (Falcone, 2017). Employee expectation can depend upon many factors, like availableness of resources, scheduling, or external factors.  Performance management preparation should address any problems associated with the requirements of employees who try to archive these expectations (Lamont, Hampel and Bruce, 2011).

Collaboration:

Reliable performance management practices should involve managers and employee’s participation in two-way communication method (Carbonara, 2012). Employees should allocate time to go through their performance review and prepare for answering questions related to their current workflow with aligned objectives openly with managers. The process should encourage employees to share information, assist in highlighting activities with peers and managers for training, learn and get support (McCain,2016).

Positivity:

In good Performance appraisals, positive feedback is necessary. As per the research conduct and identified, employees need to feel that they are appreciated in the organization by the contribution of their effort (Fletcher, 2001). Rewarding employees’ efforts will help to keep low turnover in the organization. Another approach to gain positivity is discussing the probability of promotion with the employee. This will give a clear picture of the willingness to accept responsibilities in the future and lead a positive mindset and motivation.(Russell and Russell,2009). 

Action Plan:

The key element of employee development strategy is pointing to the Action Plan. The objectives set out in the employee performance plan are not just a paper written document, it must be translated into effective steps and activities to assure the success of the organization and employee. The employee should follow the steps according to the action plan to develop himself in the organization (Harvard Business Review, 2015). Certain components are common across the action plans. We can identify key basics as follows (Edwards, Scott and Raju, 2018).

• Identifying areas for development
• Suggested Solutions
• Ownership
• Achievement criteria
• Timeline for achievement.

Conclusion

Organizations place higher importance on performance management systems as a means of improving job performance. We recommend achieving performance growth by positioning the key element to promote employee performance management review. By using these elements accurately will give increase the effectiveness of the EPR and it will be a win-win solution for both parties.

Reference

• Carbonara, S., 2012. Manager's Guide to Employee Engagement. 1st ed. USA: McGraw-Hill.
• Coleman, T.2009. Recommendations for implementing performance management systems in organization, university of Wollongong.
• Edwards, J., Scott, J. and Raju, N., 2018. The Human Resources Program - Evaluation Handbook. 1st ed. California: SAGE Publications.
• Fletcher, C.,2001. Performance appraisal and management: The developing research agenda. Journal of Occupational and Organizational Psychology, 74 (4), pp.473–487. [Online]. Available at: doi:10.1348/096317901167488.
• Falcone, P., 2017. 101 Sample Write-Ups for Documenting Employee Performance Problems. 3rd ed. New York: AMACOM.
• Harvard Business Review, 2015. Performance Reviews (HBR 20-Minute Manager Series). 1st ed. Harvard Business Review Press.
• Harvard Business School Press, 2009. Performance Appraisal: Expert Solutions to Everyday Challenges. 1st ed. United States: Harvard Business School Press.
• Johnson, B. 2004. The case of performance appraisal: Deming versus EEOC. Library Administration and Management, 18, 83-86.
• Lamont, E., Hampel, B. and Bruce, A., 2011. Solving Employee Performance Problems: How to Spot Problems Early, Take Appropriate Action, and Bring Out the Best in Everyone. 1st ed. New York: McGraw-Hill.
• McCain, D., 2016. Evaluation Basics. 2nd ed. United States: Association for Talent Development.
• Poole, L., 2013. Perfect Phrases for Coaching Employee Performance: Hundreds of Ready-to-Use Phrases for Building Employee Engagement and Creating Star Performers. 1st ed. USA: McGraw-Hill.
• Russell, J. and Russell, L., 2009. Ultimate Performance Management: Training to Transform Performance Reviews into Performance Partnerships. 1st ed. USA: ASTD Press

Dilemma in Employee Performance Appraisal

Over the years, the design, management and execution of performance appraisal have been hindered by several common strategic and business mistakes (Bernardin,2003). Training and learning play an important role in addressing these failures and advancing the evaluation of individuals and organizations (Anitha j, 2014). The organization devote plenty of time and money per year to evaluate employee performance. Though, they missed the simple opportunity to get higher value from the method and improve the integrity of their assessment (Finney, 2010).

Following are several difficulties with a performance assessment that managers regularly find.

Halo/Horn Effect

Hallo is a propensity of surveying single assessment criteria of a worker and utilizing the resultant assessment of other overall criteria of the evaluation process(Javidmehr and Ebrahimpour, 2015). Managers regularly do this when they have a good relationship with the representative they are assessing, don't want to be excessively harsh, or when they like an employee, so they are allowed to personally influence their performance. This is a very exceptionally continuous mistake and a mistake that is challenging to address (Burney, Henle and Widener, 2007).

Horn errors, individual performance is based entirely on a single negative quality or characteristic. This results in an overall rating below the guaranteed level(Bhattacharyya, 2011).

Recent Behaviour Bias

This can be taken as one of the regular obstacles that occur in performance appraisal for managers. Everyone is biased against someone or something, irrespective how we characterize them. In Point of a manager, we need to handle the performance assessment process by not letting biases to frustrate the parties (Mejias and Jana, 2018) and Biases can directly manipulate the detachment of the evaluation as the manager, he needs to focus on keeping it away to ensure that you do not concession the results of your inferences and keep the consistency between employees to get out the best results from the assessment (Spain, 2019).

Stereotyping

A stereotype is a psychological division a person into a particular group and It is then determined that this person has the same assumed characteristics as the group (Holpp, 2011) and Stereotyping happens when managers theorize about employee’s performance based on a group. Grouping can be age-wise, experience-wise, region-wise or university-based, this can considerably influence the judgment severally. managers should look beyond the labels and judge the worker by set standards and performance (Branham, 2012).

Leniency and Severity Errors

Leniency is one of the common mistakes in performance evaluation. A lenient is a mistake that causes people to make higher ratings than other raters and valid/reliable trend for certain raters. The lenient error limits the range of values ​​used, which leads to analytical reduction invalidity(Yildiz and Baltaci, 2009).

The opposite of a lenient error is a Severity error, which occurs when an evaluator evaluates an employee's performance below actual performance. In alternative words, when an evaluator evaluates an employee or a group of employees below the actual level, they do not consider their actual level of success (Falcone, 2017)

Manipulating the Evaluation

According to Poon (2004), In some cases, the manager controls every aspect of the evaluation process. since he is in a position that has authority and possibility to manipulate the system. Manager can pretend that employee has reached the evaluation criteria and he is eligible for pay rise as favouring one employee than the rest. This will direct the employee to an undeserved rating adding organization tor notable financial loss.

The Recency Effect

Another common mistake of evaluation performer is, they only concentrate on a short period of their time before the assessment takes place. If your organization conducts one or two performance evaluations a year, remember that you are evaluating performance over the entire period, not just a small part of it. Otherwise, it is unfair to a person who has done a good job but has only recently begun to waver, and vice versa. Avoiding this error requires a good process to capture performance information throughout the review (Bernardin, 2003).

Attribution Error

This is an intricate the issue because of the engagement of employees and their opinion is involved to identify certain actions or outcomes needed for the appraisal criteria decision. Never assume you understand why an employee behaved a certain way, and never engage that in your evaluation process. Stick to the actual criteria that have been designed out and how the employee’s accomplishment compares to them (Durell, 2001).

Conclusion

This study aimed to identify the association of performance appraisal errors and how it's affecting the organization's objectives. As identified minimizing these errors will heading to have a good and fair performance appraisal system for employees and it will benefit the organization as well.

Reference

• Anitha j. (2014). Determinants of employee engagement and their impact on employee performance. International Journal of Productivity and Performance Management, 63 (3), pp.308–323. [Online]. Available at: doi:10.1108/IJPPM-01-2013-0008.
• Bhattacharyya, D., 2011. Performance Management Systems and Strategies. 1st ed. India: Pearson.
• Burney, L., Henle, C., & Widener, S. K. (2007). Do characteristics of strategic performance measurement systems used in incentives enhance organizational fairness? Paper presented at the American Accounting Association, Management Accounting Section, Midyear Meeting, Dallas.
• Bernardin, H., 2003. Human Resource Management: An Experiential Approach. 3rd ed. United States: McGraw-Hill/Irwin.
• Branham, L., 2012. The 7 Hidden Reasons Employees Leave. 2nd ed. United States: AMACOM.
• Durell, A. (2001). Attribution in Performance Evaluation. SSRN Scholarly Paper, Rochester, NY: Social Science Research Network. [Online]. Available at: https://papers.ssrn.com/abstract=265210 [Accessed 22 September 2019].
• Finney, M., 2010.The Truth About Employee Engagement. 1st ed. New Jersey: FT Press.
• Falcone, P., 2017. 101 Sample Write-Ups for Documenting Employee Performance Problems. 3rd ed. New York: AMACOM.
• Holpp, W., 2011. Win-Win Performance Appraisals: What to Do Before, During, and After the Review to Get the Best Results for Yourself and Your Employees: What to Do Before, During and After the Review. 1st ed. USA: McGraw-Hill.
• Javidmehr, M. and Ebrahimpour, M. (2015). Performance appraisal bias and errors: The influences and consequences. International Journal of Organizational Leadership, 4 (3), pp.286–302. [Online]. Available at: doi:10.33844/ijol.2015.60464.
• Mejias, A. and Jana, T., 2018. Erasing Institutional Bias. 1st ed. United States: Berrett-Koehler Publishers.
• Poon, J. M. L. (2004). Effects of performance appraisal politics on job satisfaction and turnover intention. Personnel Review, 33 (3), pp.322–334. [Online]. Available at: doi:10.1108/00483480410528850.
• Spain, S., 2019. Leadership, Work, and the Dark Side of Personality. 1st ed. United States: Academic Press.
• Steiner, D. D. and Rain, J. S. (1989). Immediate and delayed primacy and recency effects in performance evaluation. Journal of Applied Psychology, 74 (1), pp.136–142. [Online]. Available at: doi:10.1037/0021-9010.74.1.136.
• Yildiz, G. and Baltaci, A. (2009). Leniency and Severity Errors in Performance Appraisal in the Context of Collectivist and Individualist Culture. p.7.