Performance Appraisal is the methodical assessment of the performance of employees and to understand the abilities of a person for further development and progress. It is also known as performance rating, performance evaluation, employee assessment, performance review, merit rating, etc.
Problems of performance appraisal: There are many problems with performance appraisal. Some are as follows –
Lack of management support: Top management of the organization is not interested to undertake performance appraisal programs in the industrial organizations of the developed country.
Lack of knowledge of employees: Employees are not well conversant about the methods and benefits of performance appraisal program. Because the methods to be applied and benefits to be accrued are not clear to them.
Lack of appraiser training: Performance appraisers of industrial enterprises of developed countries are not sufficiently and properly trained up in the methods. That is why they cannot conduct the program in accordance with the objective of the organization.
Lack of standard of ranking: In developed countries organizations, there is no established standard of ranking of employee performance. As a result, very open, a discrepancy is showed and conflict arises among the employees.
Lack of uniform benefits: On the basis of good performance proper benefit should be awarded to the employees who are hardly seen in the organizations. For this reason, employees are less interested in the performance appraisal program.
An absence of setting policy: In developed countries organizations a set performance appraisal policy is rarely seen. For that matter, in some cases, a few employees get benefits and most are not.