Limitations of Performance Appraisal
What are the limitations of Performance Appraisal?
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The main problems associated with performance appraisal are as follows:
1. Errors in Rating: Performance appraisal might not be perfect and thus it is not a valid potential of employees and performance indicator due to some errors.
2. Lack of Reliability: Reliability or dependability means stability and consistency in the measurement. Reliability of performance appraisal is reduced by lack of consistency over time.
3. Incompetence: Knowledge and experience are big factors which decide rater’s ability to evaluate the performance. If post appraisal interview is not handled effectively, raters may fail to evaluate.
4. Negative Approach: Performance appraisal is not of any use when the focus of management is on punishment and not on development of employees.
5. Multiple Objectives: Objective of performance appraisal should be clear to Raters otherwise he will get confused due to two many objectives.
6. Resistance: Negative ratings may have an effect on interpersonal relations and industrial relations mainly when employees or unions lose faith in the system of performance appraisal.
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