HR Knowledge

Free Letters

Reasons of 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 management system, which measures, evaluate the performance, productivity, profitability and economic performance of any employee.

Therefore the organization objectives should be associated 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  the research  and case studies by various institutes  organizations & firms, the followings are some of the key reasons for the failure of performance appraisal systems in company’s’

1. Manager’s personal judgment or assessment based on preferences

Many times, performance managers provide their personal views, judgments and  more opinion other than the performance appraisal parameters. They keep their biased view upfront 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. Performance managers include  “primaryresult areas” in performance appraisal system , but do not include “primary performance indicators” which result as the qualitative appraisal system instead of quantities appraisal. So this approach involves lots of manager’s perception, views  likes or dislikes and personal  side 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. This process involves lots of talks discussion, feedback and designing techniques of managers. Most of the time managers do not show their much engagement 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 give direct aknowledgement 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 avoid to give reward and recognizaiton to the employee performer in view to avoid any business or unrest among other team members.

6. Lack of leadership

Implementation performance appraisal system in organization is a responsibility of organization management and its supervisor/managers respectively. In the lack of proper leadership, supervision and communication   channels network system, organization loses its objectivity for employees. Performance appraisal is a continuous process which approaches 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. As result employees felt like demotivated and losses their confidence in this system

 

Read moreWays or Types of reward & incentives

 

LATEST JOBSView All


RELATED ARTICLES

27 Feb, 2024 Jobs & Recruitment
Intern Hell - How to Avoid Doo...

Intern Hell: How to Avoid Dooming Yourself on Your First Job Getting an internship is hard work, particularly when you want the...

23 Feb, 2024 Performance management
Worried About Your Employee Ap...

Worried About Your Employee Appraisal at Work? These Performance Management KPIs Will Help You Outperform Everyone! Employee pe...

20 Feb, 2024 Human Resource
HR Transformation - Why Your S...

HR Transformation: Why Your Startup’s Digital Transformation Plans Should Include It The startup world is gearing up for a bi...

16 Dec, 2023 Performance management
Online Competency and Results-...

Online Competency and Results-based Performance Management System Performance management software online systems are tools that...

09 Dec, 2023 Career & Education
Starting a New Career

Starting a New Career! Find the Strategies for a New Beginning It can be exciting when you want to start a new career. It ca...

05 Dec, 2023 HR Process
Measuring Onboarding Experienc...

Measuring Onboarding Experience for Performance Review Onboarding is a pivotal transitional phase, serving as the link between ...

29 Nov, 2023 Human Resource
Difference between HRD and HRM

Difference between HRD and HRM While HRM (human resource management) is an established and essential discipline within the real...

20 Nov, 2023 Performance management
Best Performance Management Sy...

Best Performance Management System for Small Business and Startup Companies Small business companies and startups come across m...

17 Nov, 2023 Human Resource
Integrating Work-Life Balance ...

Integrating Work-Life Balance to Support Talent Retention A health work-life balance is important for the well-being and job sa...

19 Oct, 2023 HR software & Technology
Human Resource Software for Sm...

Best HR Software or Human Resource Software for Small Business and Startups Running a business is not as simple as it seems to ...

13 Sep, 2023 Letter Writing
How to Write a 2 Week Notice &...

How to Write a 2 Week Notice & What Does it Means In a professional world, "Two weeks notice is a most commonly used term which...

28 Jun, 2023 Jobs & Recruitment
Best Job Sites in India

Best Job Sites in India 2024 for Job search & Job Post In today's competitive job market, finding the right job can be a da...