List the five basic requirements of performance-appraisal systems.
What will be an ideal response?
Legally and scientifically, the key requirements of any appraisal system are relevance, sensitivity, and reliability. In the context of ongoing operations, the key requirements are acceptability and practicality.
1. Relevance: Relevance implies that there are clear links between the performance standards for a particular job and organizational objectives and between the critical job elements identified through a job analysis and the dimensions to be rated on an appraisal form.
2. Sensitivity: Sensitivity implies that a performance-appraisal system is capable of distinguishing effective from ineffective performers.
3. Reliability: A third requirement of sound appraisal systems is reliability. In this context, it refers to consistency of judgment. For any given employee, appraisals made by raters working independently of one another should agree closely. In practice, ratings made by supervisors tend to be more reliable than those made by peers.
4. Acceptability: Acceptability is the most important requirement of all. It indicates that appraisal systems that are acceptable to those who will be affected by them lead to more favorable reactions to the process, increased motivation to improve performance, and increased trust for top management.
5. Practicality: Practicality implies that appraisal instruments are easy for managers and employees to understand and use.
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What will be an ideal response?