Performance Appraisal Conflicts: How Can Different Goals Clash?

Hi all,

I was wondering if anybody can answer this question I have about performance appraisal. The question is, "How can there be a conflict in purposes of performance appraisal?" Hope somebody can help me out. Any reply would be appreciated.

Thank you :)

Dear Robin,

The conflict in Performance Appraisals arises not because of Performance Appraisals but due to the rewards and punishment (losses) attached to it. The rating is usually taken as the base for Promotion, Increments, Benefits, and other Incentives for any employee, so any adverse rating affects an employee's future in an Organization as well as their career. Hence, whenever PA is done conflicts arise because of the following reasons:

(1) Highhandedness, Nepotism, Prejudice, Favouritism, or Victimisation by the Appraiser.
(2) The Results are almost in all cases used in punitive action (e.g., Withholding increments) and not Corrective Action (Through Training and Development) as the case should be.
(3) Faulty and Vague PA System

The best way to avoid conflict is to devise a transparent and fair PA System with an aim to develop Human Resources and not to use it as a tool for withholding benefits from employees which they would otherwise have been eligible for.

Regards,
SC

Hi again,

I'm still trying to figure out about this "conflict" in purposes in performance appraisal. I've been doing a lot of reading about this. Most of it said the main conflict in purposes is the appraisal roles vs. developmental roles. This is where I get confused. Can anyone elaborate more on this for me? Human Resource Management is kinda new to me. Sorry if I've been pressing too much on this. Hope somebody can help me on this. Thanks in advance :)

Does your question mean, "What is the purpose of performance appraisal?"

As far as I can see, performance appraisal (PA) has two main purposes:

1. Reward Management, i.e., increments, promotions, bonuses, etc., and

2. Development Objectives, i.e., to identify weak areas and improvement opportunities.

Sometimes, one area is more dominant than the others. Take, for example, a forced ranking system in performance appraisals. People are placed into particular categories or forced, if you will. The focus in such a case is usually on the disbursement of increments/rewards, i.e., only 50% of the employees will get a 15% raise, the remaining others will get less, etc.

However, other systems that focus on development will look at the performance appraisals as a learning opportunity. Suppose the performance results of a department are plotted on a graph showing the number of average performers, weak performers, and good performers. Then the direction of the graph will indicate where you stand. If it leans towards the good side, then you know you are doing well. If it leans towards the weaker side, then you know there may be issues that need to be identified and addressed.

I have also heard of people implementing 360-degree appraisals solely for the purpose of feedback and growth (not for rewards) and running a separate system for rewards.

Hope that answers your question.

Regards

Conflict needs to be defined. For whom is the conflict? Is it HR who designs and implements the system or the organization that goes through the process? Or is it the left-out (from rewards) employees who have the conflict? Any system to be successful has to be fair and also seen to be fair. The design of a PA system has to be based on the organization's priorities - reward-based or developmental. However, one has to keep in mind that it is the process that happens in between setting the parameters for appraisal and the evaluation process. HR, as a facilitator, has to manage the in-between period by enabling the employees to perform at their potential.

Hi,

Conflicting purposes in appraisal - Well, interesting. You are right, and this very much happens in India. I would say for sure that this happens with Management that is not transparent in HR-related issues. For instance, I knew a few instances where the Management was not happy with an employee for some other reason but waited until the appraisal to say that he is not fit for his job.

A good appraisal system should pay more attention to setting objectives than measuring and rewarding them. I have also seen companies asking employees to fill out the objectives at the end of the quarterly period just before the appraisal. You can imagine the amount of trust that employees will have in the appraisal system.

Seriousness, sanctity, security, and stability are the key words to be remembered while framing the appraisal system. Changes should start happening from the top line; it will automatically impact the bottom line.

This is just my experience, and thanks for giving me an opportunity to share this with you.

Hi,

What are the differences in the 90/180/360/540/720-degree feedback processes? Please reply soon.

Regards,
Vani