Employees’ Performance Appraisal


A performance appraisal is an annual assessment of a worker’s work performance and input to the corporation. This technique appraises an individual grounded on a set of definite norms. Once a year, a manager or supervisor conducts a performance assessment. Companies use performance appraisals to identify areas where their employees can improve and thrive. These can also give staff feedback on how they’re doing in their jobs. Managers use this data to aid in future work assignments and consider promotions. Employees may be motivated to change their work habits and become more productive due to performance reviews. This paper will review the performance appraisal system used in my place of work, rating errors that occur, and provide ways to improve it.

Management by Objective (MBO)

MBO is a well-organized and systematic tactic for management and our company uses this system to carry out performance appraisal. It permits organizations to concentrate on attainable objectives and achieve the best likely outcomes with limited assets. Its goal is to improve corporation performance by coordinating goals and subsidiary objectives (Alsuwaidi et al., 2020). Staffs should, in a model, have a lot of input in determining their aims and time limit, among others. MBO integrates continuous tracing and response into the goal-setting procedure. Our manager concentrates on achieving attainable objectives and getting the greatest out of available properties. His goal is to advance organizational performance by directing goals and subordinate aims.

Peter Drucker introduced MBO in his book ‘The Practice of Management in 1954. Conferring to Drucker, administrators should evade the activity trap, in which they become so engrossed in their everyday tasks that they lose sight of their core determination or mission. Instead of only a few top managers, all supervisors should: engage in the intended planning course to expand the plan’s implementation abilities and employ various performance schemes to keep the firm on track (Alsuwaidi et al., 2020). Leaders in MBOs are more concerned with the outcome than with the activity. They distribute responsibilities to their subordinates by negotiating a contract of aims with them rather than prescribing a specific implementation plan. Setting goals and then breaking them down into more precise goals or main consequences is what MBO is all about.

The goal of MBO is to safeguard that everybody in the organization has a pure grasp of the organization’s goals or purposes and their roles and accountabilities in achieving those goals. The goal of the entire MBO structure is to get managers and endowed workers to act to implement and achieve their plans, which will help the corporation realize its goals. When personnel is competent, the MBO model is suited for knowledge-based businesses. It is a good fit for instances when they want to improve the employees’ administration and self-leadership abilities while tapping into their creativity, implicit information, and originality (Alsuwaidi et al., 2020). Multinational firm directors also employ MBOs for their country managers in other countries.

Rating Errors

The Hallo Effect

The halo effect happens when a rater emphasizes one performance aspect while giving similar marks to other aspects. As a result, a single component substantially impacts overall judgment. Such a viewpoint diminishes the significance of other factors, resulting in an imbalanced judgment of an individual’s success (Bizzi, 2018). A manager, for example, may give a worker a high-quality rating because of her meticulous attention to detail and lack of flaws in her work. The manager then scores the individual very highly on efficiency, responsibility, timeliness, and other areas, thinking she is an overall high performer based on the quality of her job production, without taking an honest look at her performance in these areas.

Recency Error

This error happens when the evaluator deliberates the newest weeks of work while offering an assessment. For example, presume a worker had done commendably for most of the evaluation period but made a fault before the annual evaluation. If the whole year is not considered, they may obtain a deprived assessment. To put it another way, the evaluator makes a recency error. It is also likely that the appraiser’s opinion will be influenced because an employee lately finalized a noteworthy project (Bizzi, 2018). When their performance has stood awful for most of the year, it may affect a good score. The supervisor should be explicit about the abilities to be assessed in the performance analysis before meeting with personnel.

Ways of Improving Performance Appraisal

Create Transparency

Measurable performance requirements should be simple to comprehend and follow. Employees can rest assured that they are being appropriately treated in defined performance measures. Management can compare ratings to actual performance and ensure staff understands how the system affects them (Bayo-Moriones et al., 2020). To take it a step further, management’s actions should be clear. Even if anonymity is maintained, everyone’s performance should be publicly available. Employees may see how they are doing compared to their coworkers while also having access to the same information as management. This reaffirms the company’s commitment to treating employees fairly and motivates them to work harder to advance through the ranks of top performers.

Provide Training and Workshops

Managers should follow up on areas of improvement with customized training for their workers to get the most out of a performance appraisal system. An employee can make up for areas lacking by going through training that improves performance once an appraisal has been completed and offered feedback. Supervisors and managers should also be provided with training programs on communicating with staff about their development (Bayo-Moriones et al., 2020). This gives employees the chance to succeed in areas where they are underperforming.

Broaden Information Sources

Data can be misrepresented or twisted from actual performance, making performance rating systems that rely on a single source of information untrustworthy. Broadening your information sources is significantly more effective, so performance is analyzed and confirmed using multiple factors. A 360-degree technique is one way to accomplish this (Bayo-Moriones et al., 2020). In this technique, a single employee’s performance is evaluated by collecting anonymous input from numerous coworkers from various hierarchies inside the company. This enables a more objective assessment of an employee’s performance. Because of the anonymity, it incorporates more people in the performance rating system and encourages collaboration and synergy between teams.

Rater Training For Managers

The course of managing, encouraging, and appraising worker performance should emphasize rater training. One of the most excellent operative methods to deal with errors and bias is developing and clarifying evaluation benchmarks through frame-of-reference (FOR) training, which employs hypothetical instances that an employee might exhibit (Alsuwaidi et al., 2020). It has been established that FOR training increases evaluation exactness by providing rating criteria and signifying behavioral instances on numerous rating characteristics, FOR training attempts to shape a standard reference amongst evaluators as to what constitutes actual appraisal.


Performance assessment is a periodic appraisal of an operative’s work performance as evaluated by the organization’s proficiency criteria. It covers all the organization’s essential capabilities and the aptitudes related to the worker’s situation. It frequently encompasses the firm’s key proficiencies and the abilities relevant to the employee’s situation. Depending on the type of feedback given, a performance evaluation might be an opportunity for the company to recognize employee accomplishments and future potential.


Alsuwaidi, M., Alshurideh, M., Kurdi, B. A., & Salloum, S. A. (2020, October). Performance appraisal on employees’ motivation: A comprehensive analysis. In International Conference on Advanced Intelligent Systems and Informatics (pp. 681-693). Springer, Cham.

Bayo-Moriones, A., Galdon-Sanchez, J. E., & Martinez-de-Morentin, S. (2020). Performance appraisal: dimensions and determinants. The International Journal of Human Resource Management, 31(15), 1984-2015.

Bizzi, L. (2018). The problem of employees’ network centrality and supervisors’ error in performance appraisal: A multilevel theory. Human Resource Management, 57(2), 515-528.

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