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Disadvantages And Disadvantages Of Traditional Performance Appraisal

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Introduction: Performance appraisal is an evaluation and grading exercise undertaken in organizations to achieve several objectives such as employee motivation, identification of training needs, rewards and remuneration, employee development through feedback etc. [Fig. 1]. All methods for performance appraisal have several advantages and disadvantages based on location of the firm, socio-economic environment, vision and mission of the firm, organizational structure and other factors. Organizations in different industrial sectors may have different focus areas of work and different values and thus, expectations from employees vary across sectors. Fig. 1 Aspects of Performance Management System Performance Appraisal methods: There are multiple ways to classify the methods such as: i. …show more content…

It can be observed that major focus of assessment is on personality traits and many of the methods suffer from lack of clarity for employee with respect to expectations and targets. Table 4 shows description, advantages and disadvantages of modern appraisal methods. These methods focus more on employee development, setting achievable goals beforehand and leadership development. Table 3. Advantages and Disadvantages of Traditional performance appraisal methods Appraisal Method Description Advantages Disadvantages Ranking Method All employees are ranked relative to each other on the characteristic being measured • Simple to use • Useful for direct comparison between employees • Does not indicate how much better or worse employees are relative to each other. Paired Comparison Employees are compared with all other employees on a one-on-one basis • Useful when employees have varying behavioral traits • Does not work with large number of

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