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INDIVIDUAL ASSIGNMENT
Develop understanding of the limitations of a 3rd party appraisal
The limitations of a 3rd party appraisal are as follows:
1. Biasness of the evaluator: The biasness of the appraiser is the greatest weakness of this method where low rating is given to unfavoured employees whereas appraiser’s favoured employee is awarded high ratings.
2. Uncertain standards: If there is no specific set standards set by the organization then it creates an ambiguity for the supervisors. They may then follow different standards for different employees.
3. Avoiding diverse qualities: There are different qualities of an individual employee like employee background, behaviour and values are ignored during evaluation by a 3rd party appraisal.
4. Influence of employees’ job: There is a tendency to give high ratings to senior employee than a junior employee of the company.
5. Inadequate evidence: The performance appraisal by 3rd party may be superfluous. This is because an employee may impress his boss but his/ her reputation may be negative in his own department may get a higher rating in his appraisal.
6. Average evaluation issues: The most common problem with the appraisal process is giving average ratings to most of the employees. This is because the top level managers have to justify the reasons for providing a very high or very low rating. Also, a low rating upsets the junior employees.
7. Similarity error: Evaluator rates high to those employees where he finds characteristics similar to him. This is not at all justified because each employee resembles varied characters.
8. Stringency or Leniency propensity: Evaluators may be strict or lenient in evaluation process. Hence, the strict evaluation tendency is known as “Negative Leniency Error” whereas the lenient evaluation tendency is known as “Positive Leniency Error”. Depending on this the rating of the subordinates may be low or high respectively.
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