Performance is something that is highly debated. Hence, there has been a high demand for making the performance appraisal system as objective as possible.
Most organizations now focus on setting goals and targets at the beginning of the year. According to the company policy, they will have quarterly/half-yearly and annual appraisals based on these goals and targets.
However, no matter how objective you make it, there is always a degree of subjectivity in the appraisals. This is essentially the perception of your supervisor regarding your job. Some bosses are very lenient and may view a subordinate as highly self-motivated and hardworking, while another boss may consider these factors as trivial and prioritize the employee's learning and adaptability. Rating systems are also utilized, where the boss rates the employee based on preset parameters, and the career growth of the employee hinges on these ratings. Yet, even here, there remains a significant risk of subjectivity.
Smaller organizations may consider implementing a central rating system where ratings are determined by a central committee based on a review and presentation by the employee and supervisor. However, this approach may not be feasible for larger companies.
Specifically, the focus should be on eliminating subjectivity in Performance Management and enhancing transparency in the system.