Limitations of Performance Appraisal
What are the limitations of Performance Appraisal?
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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.
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