PERFORMANCE APPRAISAL FAILUREREASONS FOR PERFORMANCE APPRAISAL FAILURE IN ORGANIZATION
Performance management system is the most effective tool of any organization to measure the performance standards of employees.
Performance appraisal process is the part of performance management system, which measures the performance, productivity, profitability and economic performance of any employee.
Thus, the organization objectives should be integrated with employee’s goals (or Key performance areas) through the structured approach of performance management systems.
There are various methods and techniques of performance management system. In general, the organizations, adopts and follow the systems which are aligning with their internal process, systems and resources. Different organizations and industries follow different practices of performance appraisal system but, in spite of many benefits, this process falls flat in many organizations.
Through research and case studies by various institutes & firms, the followings are some of the key reasons derived for the failure of performance appraisal systems in company’s’
1. Manager’s personal judgment or assessment based on preferences
Many a times, managers provide their personal views, judgments and opinion other than the performance appraisal parameters. They keep their biased view ahead of measure and analyzing employee performance against the assigned goals and objectives. They show less interest in the performance appraisals system and belief on their own method of performance judgments.
2. Unstructured methods of performance appraisal systems
There are many organizations which do not set the parameters of measuring performance levels of employees. They create “Key result areas” in performance appraisal but do not include “key performance indicators” which result into the qualitative appraisal system instead of quantities appraisal process. Thus, this approach involves lots of manager’s perception, likes or dislikes and personal favors. Such appraisal processes also lack of feedback system between employee and managers.
3. Lack of interest and ownership of manager
Performance appraisal process is a long and time consuming process. It involves lots of discussion, feedback and designing techniques of managers. Too often, managers do not show their much involvement and interest in designing and developing the performance standards and set goals for their team members objectively. In other words, instead of collaborative approach of human resources department, function/ department head and reporting manager, whereas it becomes coordinating approach for executing this activity in few organizations.
4. Lack of proper channel of communication
In many organizations, managers avoid to provide direct feedback to employees on their performances. They resist and close the channel of exchanging feedbacks with their subordinates.
5. Lack of reward and recognition policy
In many organizations, management ignores the aspect of giving reward and recognition to the employee performer in view to avoid any biasness or unrest among other team members.
6. Lack of leadership
Implementation of performance appraisal system in company is a responsibility of organization management and its managers respectively. In the absence of proper leadership and communication channels, it loses its objectivity in the eyes of employees. Performance appraisal system is a drive of continuous process which flows from top level to bottom in an organization.
7. Lack of designing, monitoring and measuring the performance appraisal standards
It is a continuous process which should be developed, designed and monitored by managers for the successful implementation. In the absence of such practices, it is difficult to collect information, measuring, analysis and use it for decision making process. Thus, employees feel demotivated and lose confidence in this system