Performance Appraisal Tutorial | Factors Affecting Performance Assessment

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Factors Affecting Performance Assessment

An solicitous performance assessment process can engage the employees and  help boost an organization’s employee engagement, motivation, and retention rates.  It tries to align individual approach to the company’s mission. It helps to create a better work environment and a strong organization. Organizations will easily identify and develop future leaders.

Douglas Mc. Gregor suggested that emphasis should be on analysis and not on appraisal. A performance management process   analyses the achievements and forms a basis for career planning, potential development, performance agreements and development plans. Performance assessments depend upon the ability to judge a performance which further depends upon specification of clear standards and avoidance of unnecessary projections. Perfect assessments cannot always be real and will have some errors.


For avoiding these problems the following corrective measures can be adopted,

  • All the managers and employees should understand the concept of performance and should learn the difference between good and bad performance.
  • Managers should be encouraged to define and agree upon the standards and establish the different measures of effectiveness.

Managers should be trained to base their assessments and judgments after scrutinizing the relevant data.

Different techniques to adopt for the assessment of the   performance of employees in an organization are,

  • A complete analysis of performance: Performance management is all about analyzing performance instead of assessing it. This technique aims at determining an agreement for future action after carefully analyzing the strengths or possible weaknesses.
  • Narrative Assessment: This a kind of written summary prepared by the managers about different levels of performance achieved. This technique lacks consistency because of no standard criterion used for assessments by different managers.
  • Ratings: Rating is used by many organizations for making pay related decisions. An employee’s performance or the competence level in a particular skill can be assessed by evaluating it on a scale against certain parameters which may be qualitative (behavioral) or quantitative.
  • Forced Distribution: Here the manager is forced to offer his ratings following the pattern of a normal curve assuming that the employees’ performance levels fall under a normal statistical distribution.
  • Forced Ranking: Here ranks are assigned to  the employees are  on the basis of categories. But the rankings should be accompanied by meaningful performance data.
  • Quota Systems: It refers to the distribution of ratings after an event for ensuring that the quota in each level is met.

Performance assessment is a very crucial and a very difficult process. A combination of various assessment methods can produce good results.

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