PERFORMANCE APPRAISAL TECHNIQUE AND ERRORS IN DOING PERFORMANCE APPRAISAL

TECHNIQUES  OF PERFORMANCE APPRAISAL

ERRORS IN DOING PERFORMANCE APPRAISAL

1.HALO EFFECT

Halo effect comes under the category of the first impression error.The "halo effect" is when one trait of a person or thing is used to make an overall judgment of that person or thing. It supports rapid decisions, even if biased ones.Under this one positive traits of an individual overshadow his entire personality.


example, a tall or good-looking person will be perceived as being intelligent and trustworthy, even though there is no logical reason to believe that height or looks correlate with smarts and honesty






2.HORN EFFECT

Horn Effect is similar to halo effect but its the opposite of halo effect ,If our first impression about a person is negative, we tend to ignore his positive characteristics and concentrate only on the negative ones. We tend to see the person in the light of the negative first impression and hence there is higher probability that we will not like the person. This is called horn effect. Eg, if an interview starts with a negative statement from the interviewee, there is higher chance that he would be rejected due to horn effect.






3.SPILLOVER EFFECT

Under Spillover Effect current performance of a person is seen in the light of past performance
This bias pertains to a manager judging the current performance of an employee by using past performance as a reference point. If a manager is not viewing the performance of an employee clearly due to the spillover effect many problems can arise. This employee’s recent performance reviews will likely not be accurate. The employee and his supervisor will also have an unfairly weighted version of this employee’s performance which will cause other problems in the workplace.





4.RECENCY BIAS

The recency bias is one of the trickier forms of bias that may interfere with an effective performance review. When managers are affected by this bias they tend to over or under value short term events to the detriment of the employee’s long term performance. Most performance reviews are set period of times, so failing to take into account the entire performance review time period can lead to ineffective and false performance reviews.




5.Personal Biases: 

The way a supervisor feels about each of the individuals working under him - whether he likes or dislikes them - as a tremendous effect on the rating of their performances. Personal Bias can stem from various sources as a result of information obtained from colleagues, considerations of faith and thinking, social and family background and so on.



6.Central Tendency: 

Appraisers rate all employees as average performers. That is, it is an attitude to rate people as neither high nor low and follow the middle path. For example, a professor, with a view to play it safe, might give a class grade near the equal to B, regardless of the differences in individual performances.



7.Excessive Stiffness or Lenience:

 Depending upon the raters own standards, values and physical and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Some of the managers are likely to take the line of least resistance and rate people high, whereas others, by nature, believe in the tyranny of exact assessment, considering more particularly the drawbacks of the individual and thus making the assessment excessively severe. The leniency error can render a system ineffective. If everyone is to be rated high, the system has not done anything to differentiate among the employees.






8.RATER EFFECT


Rater errors are errors in judgment that occur in a systematic manner when an individual observes and evaluates another.


Personal perceptions and biases may influence how we evaluate an individual’s performance. What makes these errors so difficult to correct is that the observer is usually unaware that she or he is making them.