Performance appraisal is an important issue in human resource management (HRM) and is a crucial responsibility of managers and supervisors in order to attain organizational goals. An organization needs greater awareness of its position. Such awareness improve the knowledge of strengths and weaknesses in organizational performance and behaviors which help provide the quality of performances. Futhermore, in an attempt to improve its human resources (HR) production volume and services, an organization needs to develop awareness of personnel efficiency. Employees are also considered as an asset for the organization and in a company and also could determine the organisation’s survival. The performance appraisal system (PAS) is crucial as a management tool to increase the employees’ efficiency in the workplace.
We can say that performance appraisal is a usual and systematic process in order to identify, measuring, observing and developing job in terms of their strengths and weaknesses. Performance Appraisal can also be determine as a good evaluation to evaluate the employee and to understand the abilities of them for further development in the future. Performance appraisal being done in systematic ways such as the supervisors measure the pay of employees and compare it with targets and plans, the supervisor analyses the factors behind work performances of employees and the last one is employers are in position to guide the employees for a better performance.
However, the performance appraisal system undertaken by companies out there may also have an average rating of their unfair and biased judgment. The difficult aspects in the performance appraisal process has to do with is biases. A bias is defined as a prejudice in against of someone or something. Managers commit mistakes while evaluating the employee with their performances. Various kind of biases and judgment error may make the performance appraisal process being worst and inaccurate.
Many different kinds of performance appraisal bias and errors that can show up during the performance appraisal process. Since we are all human, it is common for managers to make “errors” when assessing employee behavior and writing the performance appraisal about the employee. These performance appraisal bias and errors can give an employee an unfair advantage or disadvantage over others in their peer group. There are severals appraisal bias and errors that can be found in many organizations and also in any company such as halo effect, recency effect, central/leniency/strictness tendency, prejudice and stereotyping and the last one is fatigue.
Halo error happen in the company or certain industry is because when a manager really likes or dislikes an employee and allows their personal feelings about this employee to influence their performance ratings of them. The halo effect is a problem of performance appraisal bias that not only found in the appraisal process but also in recruitment. Recruitment is finding and hiring people to fill job in an organization or in acompany. Halo error happen when the appraiser is influenced negatively by some aspect of the subordinate. Most of the appraiser likely to rate highly for someone they like. Because of that, the characteristics and the personality of the employee may effect the manager’s evaluation. For example, from the Oxford Book titled Human Resource Management : Principles and Practices Fourth Edition, most appraisers in any company are tend to like those employees who are similar to themselves in background and lifestyle. They will choose and give the positive rating to a graduate from the same college as themselves or from the same pat of the country. Eventhough, the person or the employee are actually does not deserve a high rating because of their inefficient performances during interview or during promotion.
Besides that, central/ leniency/ strictness tendency can also be determined as the bias and error happened in an organization. The central tendency happens when the appraiser rates all the subordinates are average on all criteria being judged. According to Emad Mohammed Said Abdalla, The ERP ; IT Software, operation general manager of AL DOHA Company, he said that some supervisors tend to rank all employees at about average, regardless of an employee’s performance. A supervisor who believes in never rating an employee as excellent is demonstrating central tendency error.This is because the central tendency happens when the appraiser is scare of negative response and feedback from the employees. This attitude will lead to the distortion of the purpose of evaluations as it does not reflect at all for the employees’ true performance. Other bias of performance appraisal is recency effect. Recency effect is about how the inaccuracy or flaw in performance appraisal like a job interview or job promotion are being caused by the appraiser’s or the evaluator’s judgement reliance on the recent occation of the employee’s attitude in workplace. This is because some applicants or employee are knowing with their talents on how to ‘bodek’ the their manager or appraiser in order to give them the excellent evaluate in workplace before an annual appraisal exercise. This may cause the employee will not make their workhard effort before the annual appraisal exercise and they only make their workhard effort on or during the appraisal time. They will not easily give a good consistant work in the organization.
Prejudice and stereotyping is also the bias and error in performance appraisal. According to the Oxford book titled Human Resource Management : Principles and Practices written by Maimunah Aminuddin, prejudice and stereotyping is a form of bias in which an appraiser is influenced by certain behaviors and characteristics of an amployee which are not relevant to his or her performances. Workplace stereotype is bad and harmful and unfair in organization daily life as they can create bad havoc on productivity and morale in the workplace. There are many kinds of workplace stereotype such as gender stereotypes, age stereotypes and race stereotypes. Race stereotypes is the most bias that always happens in the organization. For example, many managers or appraisers will stereotypes that chinese employees are very good and intelligent in workplace rather than malay employee and indian employee. They also think that races in certain country like if the manager is a kelantanese, he or she will give extra marks and trustworthy to the employee who is as same country as him or her. Meanwhile, in the term of prejudice, it is same as stereotyping but prejudice is more to an unjustified or negative attitude towards an individual based solely on the individual’s membership of a social group also in the workplace. For example, manager without university qualifications may being prejudiced to the others who have degree in their wokplace.
The last bias and error happens in the performance appraisal is fatigue. Fatigue is a form of bias that affects the performance appraisal of the employee just because the appraiser becoming to tired after conducting and doing so many appraisals and works .He or she cannot consentrate and focus or give the accurate evaluation to the performance of his subordinates. For example, the responsibility of a manager is to evaluate and consider the evaluation carefully and with a lot of commitments, but as the deadline to complete the exercise is just around the corner, the manager may not give his or her full attentions and sufficient thought to the matter. As the result, the subordinates may get the undeserved ratings which means there may be the subordiordinates which are not very good in the performance appraisal get the better marks rather than the subordinates who are very good in performances appraisal but get the less mark in the evaluation just because the appraiser or the manager are not carefully consider and appraiser them as they are busy to finish the annual appraisal exercise quickly.
The bias in performance appraisal is always happen in organization in every companies in malaysia or in overseas companies. However, there are some steps and suggestions that can be made to solve this problems. One of them is offering HR support to supervisors. It is very important to make the supervisor or the manager on how to deal with the difficult employee issue in the organization.For that, providing HR support can be a big help to make a better conversation with employees about any progress in the organization and making a good relationship between manager and employee. Besides that, be cautious about the employee’s concern. It is a normal thing that employee will be afraid about what they will be evaluated on. In order to improve the annual appraisal exercise or known as performance reviews, exposed them first with all the expectations about the performance reviews which they will be evaluated on so that they will no be in a high scare emotion. As a appraiser on a review day, make sure to choose a nice place and environment to help the employee feel at ease. The appraisal must also be link with the job such as the performance rating have to be related with the employee’s job. As the appraiser, they must take note about the employee’s performance in every year in order to discuss about what achievements of the employee during the appraisal review and discussion.
In a conclusion, human resource management is very important in achieving organizational goals in a company and industry. Quality evaluation is very important and needs to be emphasized in the work sector. This is because of the evaluation and the judgement of the work have to be done to improve the quality of workers in companies. However, the bias in performance appraisal performed by the appraiser to another employee has a poor impact on the productivity of the company. At the same time, the moral and organizational quality of the organization will begin to decrease. The spirit of work and unity among workers will be lost. They will be prejudiced among themselves and their relationship of belief will also disappear. Appraisal performance will also be worst as the appraiser chooses unethical workers in terms of temperament and the way they do their work in the office. This is because appraisal are underestimated about the appraisal that being made and the favoritism in the annual appraisal exercise will be the worst in time. However, slowly and continuosly improvements in order to decrease the bias in performance appraisal are being take so that such problems can be contained and will not be repeated in the future. Human resource management will also have to take an attention about this problem so that it can be overcome in the future.
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