Limitations of Performance Appraisal

Question

What are the limitations of Performance Appraisal?

Answer 1

The main restrictions in Performance Appraisal are explained below:

1. Time Consuming: Performance appraisal is a lengthy and time taking matter.

2. Lack of Reliability: Lack of stability over time and among different raters may decrease the trustworthiness of performance appraisal.

3. Incompetence: Raters may not succeed in evaluating performance truthfully due  to not having proper knowledge and experience.

4. Absence of efficient Participation of Employees: In performance appraisal efficient contribution of concerned worker is necessary.

5. Resistance of Employees to Appraisal:  Employees turn against the system as they think that the organization is only trying to prove their defects for punishing them.

6. Stereotyping:  This involves forming a picture of a person in their mind on the basis of his caste, age, religion or sex.

7. Halo Effect: Usually, there is the existence of a halo effect, which leads to an inclination to rate the same person first, who once has got first position.