Describe the common problems with performance appraisals and how to avoid them.
What will be an ideal response?
Personal biases and stereotyping are two of the most significant appraisal problems. Other problems include halo error, distributional errors (either the grading is too harsh or too lenient, or everyone is judged to be average), similarity error, proximity error, recency error, contrast error, and attribution error. There are several ways to avoid these problems. The first option would be to develop accurate performance measures. Accurate performance measures use multiple criteria, minimize trait-based evaluations, and can be analyzed using the OUCH test and the Blanchard test. Next, we should train the evaluators, because as soon as they know some of the common errors, those errors will become less pronounced. We can also use multiple raters to mitigate any potentially biased evaluations and minimize other errors such as similarity, contrast, and attribution errors. Finally, don’t evaluate what you don’t know. Find someone in the organization who does know the job, and have that person evaluate the individual performing the job.
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