Performance Appraisal: Common Pitfalls and Solutions
(Adapted from Managing the Staff of the Local Church, by David R. Pollock, Alston-Kline, Inc., 2003, p. 19-24. Used with permission.)
Performance appraisal embodies every element of good staff management, and offers a precise way to develop the people working within your organization. The goal is to use performance appraisals as a coaching or development tool—essentially, as a vehicle to inspire communication about work-related issues.
Because performance appraisal ratings involve human judgment, they are subject to human error. Here are some of the common pitfalls of performance appraisal, and how to avoid them.
1. Halo Effect
The Problem: A manager or supervisor allows a general favorable impression of an employee to influence his or her judgment on each separate factor in the performance appraisal process.
The Solution: The rater should consider each factor independently of all other factors, rather than rating the employee at the same level on all (or most) factors in an appraisal. No employee’s behavior can be the same on the variety of skills that the rating scales measure.
2. Recency Effect
The Problem: A staff member’s recent outstanding contribution or untimely mistake just prior to a performance review colors the manager’s perception of the employee’s performance for the entire appraisal period. (A similar pitfall, the Unforgettable Effect, occurs when an employee does something so extraordinary, either positively or negatively, that its impressions last for a long time, to the advantage or disadvantage of the employee.)
The Solution: An alert manager compensates for lack of perspective by careful documentation.
3. Manager Preference
The Problem: Personal friends of managers get better ratings than their performance justifies. Conversely, managers rate employees lower than they deserve when conflicts of manner, style and personality exist.
The Solution: Managers avoid the tendency to rate favored employees higher than they deserve because of their manner and personality.
4. Effect of Past Record
The Problem: The employee who has performed well in the distant past is assumed to be acceptable in the recent past also. Previous good work tends to carry over into the new period being appraised.
The Solution: Once again, observation and documentation of the employee’s performance will give an accurate account of the performance period under scrutiny.
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