Objective vs. Subjective performance appraisal

Organizations must choose the degree to which performance appraisals are to be objective (evaluating performance against specific standards) versus subjective (evaluating how “well” an employee performs in general). Although at first glance it may seem that objective measures are the best strategic choice for an organization, subjective measures can be helpful when identifying desirable characteristics that are difficult to quantify. For example, objectively measuring communication skills or management potential is an extremely difficult task. The formal performance- appraisal should contain both objective and subjective measures of performance.

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