The Performance Appraisal: Advantages and Disadvantages

Shari M. Kern

"The performance assessment is the procedure through which staff performance is assessed, feedback is provided to the worker, and corrective action strategies were created" (Youssef, 2015, Section 6. 2, What's Performance Appraisal and Why could it be Important? para 1). Performance appraisal is deemed an important opportinity for decision-making needs of today's businesses. The performance appraisal is the method by which businesses appraise job performance. Typically, a performance appraisal system entails a manager to examine each employee's performance equivalent to performance benchmarks' which may have previously been setup over a period. Performance appraisal methods also present a base for forecasting improvement, as well as a means for deciding merit, increases, new positions within the business enterprise and even dismissals.

Strategic Advantage of Performance Appraisals

One of the number of features of performance appraisal is, in the hustle and hectic working life, it extends a valuable chance of a administrator and subordinate to have "respite" for a private conversation about matters positive or negative that otherwise may well not be discussed. Performance appraisal proposes a good work to concentrate on job accomplishments and focuses on, to discern and improve current problems, and inspire improved future performance. For example, performance appraisals can have a profound effect on inspiration and morale, it includes an excellent chance for managers to recognize and reach an agreement on individual training and development needs, and it can verify the success of a business's recruitment and orientation steps.

The Potential Forms of Bias Within Appraisals Systems

Bias can impact worker performance appraisals in extraordinarily harmful ways. A good administrator must be impartial about the performance of their workers. A performance appraisal bias can misrepresent a manager's and a business's diagnosis of what sort of worker is doing. Some biases are "stereotyping (inaccurate results against certain employees belonging to a group), halo effect (erroneous judgments about a worker based on a limited quantity of performance measurements), self-fulling prophecies (We have a tendency to see everything we expect to see. Research shows that when other things are identical, if managers badly evaluate employees to be failures and expect these employees to fail, then your employees will probably fail. Alternatively, if a administrator believes in an employee and desires him or her to achieve success, then he or she will be more likely to do well), and the essential attribution mistake (Employee blames others because of their failures but do not provide them with enough credit for his or her successes. If still left unchecked, this common attributional bias can be damaging to performance appraisal)" (Youssef, 2015, Section 6. 6, Opportunities, Problems and Recent Trends in Performance Management, para 16).

Performance Appraisals Contribute to the Success of Strategic Objectives

The success of a performance appraisal can be assessed in how good it accomplishes its proper objectives. Performance objectives determine how a business strategy will be gained. Performance aims also perform an integral function in distinguishing the final outcomes required because of employee's powerful work and determination. Performance objectives are a necessity in aligning well-defined objectives for employees. Performance goals challenge employees to achieve the greatest benefits to encourage business development and make frequent progress to meet the challenges and moving demands of industry. Performance targets should be well-defined and immediate proposal. Knowing the proper objectives in performance appraisals can support a small business to change performance appraisals to meet business wishes.

In final result, performance appraisal is deemed an important tool for decision-making needs of today's businesses. The performance appraisal is the technique where businesses appraise job performance. When done successfully, worker performance appraisals are amazingly beneficial to the efficiency of your business. Performance appraisals give a business with the methods to assemble data and talk about business and specific targets to each employee. These appraisals are methods that can make all employee's more beneficial and involved with their work and thus make the business more successful.


Youssef, C. (2015). Human resource management. (2nd ed. ). NORTH PARK, CA: Bridgepoint Education.

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