The problems of performance appraisal have to be dealt with judiciously to improve the appraisal system of the organization.
1. Rater Training for Reducing Rater Errors
Raters shall be given training on how to assess performance, understand performance criteria and their various degrees, avoid personal bias and how to be neutral while appraising performance of an individual. Werther and Davis (1996:349) mentioned three steps in rater training which will help reducing rater errors. First, biases and their causes should be explained. Second, the role of performance appraisals in employee decisions should be explained to stress the need for impartiality and objectivity. Third, if subjective measures are to be used, raters should apply them as part of their training. Mistakes uncovered during simulated evaluation of raters in the training program can be corrected through additional training or counseling.
2. Measures to Reduce Organizational Errors
Organization shall take positive measures to keep appraisal free from all errors that are caused by the wrong decision of the organization. It shall (i) select the right appraisal tool; (ii) use multiple raters; (iii) reward the accurate raters for their sincere effort and correct evaluation; (iv) combine absolute and relative criteria /standards for making evaluation fair and just; (v) train raters; (vi) standardize form with reasonable numbers of criteria and multiple choice not more than 5/7 choices; ( vii) print on fine paper and clearly readable print; (viii) provide raters with written performance standards based on job analysis; (viv) document evaluation and instances of poor performance; (vv) provide a formal appeal mechanism and review of ratings by upper-level personnel; (vvi) use post appraisal interview to know the loopholes and problems with the appraisal system currently is in use to improve and to make it effective; (vvii) provide on-going feedback to the employee so that he/she can improve his/her performance and personal characteristics to fit with the organizational culture; and (vviii) shall maintain a good and discipline work environment in which raters will be able to rate objectively, neutrally , sincerely , fearlessly and honestly without any obstruction from any situation. This will obviously improve performance appraisal and be helpful to the organization.
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