Organizational Behavior: Performance Appraisals


Every company requires good performance from all its employees who must be evaluated at certain stages of their work so that their input is measured in response to their performance contracts made by the employer. Performance evaluation is done by all companies that value the quality of work and the services they give to their customers. This ensures that services never move towards substandard levels and that the quality remains high and perfect. Moreover, performance evaluation helps in measuring job effectiveness and facilitates the employees’ career guidance. This paper examines performance evaluation and gives its relative evaluation criteria; it explains the advantages and disadvantages of having peers, supervisors, and subordinates in the performance appraisal and further compares and contrasts the performance evaluation methods available, as well as identifying the biases and errors that impact the accuracy of performance appraisal and the techniques to rectify them.

Performance evaluation

In performance evaluation, some indicators are observed by the employees. Evaluation is done periodically since it is progressive and continuous, and the employer evaluates the employees’ accomplishments during the period given, services and relationships, dependability, adaptability, flexibility, and other traits required in the job such as communication skills, problem-solving and decision making. All these evaluations are based on the broad aims, goals, and objectives of the company and the specific aims, goals, and objectives of the individual (Margulies, 2004, p.3).

The evaluation criteria are mainly set by many companies and are just like a test that one must pass to continue working in the company. Many of the qualities evaluated are set based on the employee’s contract and terms of employment. Indeed, the quality of work, the quantity of work, knowledge of the job, relations of working, supervisory skills, and communication skills among other qualities are ranked as either unacceptable, meeting expectation, or outstanding (Coens & Jenkins, 2000 p.30). This will help to establish the position of the employees and their contribution to the firm or company.

When the ranking of the employee is unacceptable, he/she has not met the required standards and thus can be said to be nonfruitful. However, when the employee is said to meet standards, he/she has average performance, and when he is outstanding, he/she is said to have superseded the expectation of the institution. The outstanding performance calls for the reward which will make the person perform even more productively.

Advantages and disadvantages of supervisors, peers, and subordinates in evaluation

The advantages of involving supervisors, peers, and subordinates in the evaluation process are many and fruitful to the company. When another staff is involved, the true achievements will be given to the right individuals. In addition, the success of every individual will be explicitly outlined, making the process transparent and accountable. This will also act as a challenge to those who do not perform up to standard, to be more active during the next appraisals; thus contribute to more productivity in the company (Margulies, 2004 p.5). The employees are also exposed to the hierarchy of the company hence they will get to know what duties are to be performed by who.

Disadvantages of involving supervisors, peers, and subordinates in the evaluation process include humiliating affairs for the seniors and the presence of the risk of biasness on part of the juniors who might be very good in performance and disliked by other employees for loyalty or performance (Coens & Jenkins, 2000, p.36). When other employees participate in the exercise the structure of payment may be known and this may lead to chaos or disagreements.

Performance evaluation methods

Performance evaluation methods include the critical incident method where the evaluation is done by the manager and only considers positive or negative aspects of the employee; the weighted checklist method where a descriptive list of the effective and ineffective behavior on the job is rated; the paired comparison analysis where the relative importance of the options listed by the company is considered; and graphic rating scales which include a form where the management evaluates the level of employee performance (Ngo, 2009). In addition, essay evaluation has no quantitative techniques involved but uses the strength and weaknesses of the employees as well as being mainly combined with the graphic rating system.

Other evaluation methods include behavioral anchored ratings where specific behaviors are used to rate the employees – it uses several indicators to determine efficiency or inefficiency; performance ranking method which involves comparing between employees (who does the best jobs) but does not compare standard qualities; and Management by objectives (MBO) where the objective is set for each employee to achieve, making the employee ponder on what should be achieved rather than how to achieve it (Ngo, 2009). Another method is 360-degree performance appraisal where employees get feedback from their workmates and other related parties without them knowing. Moreover, forced ranking is where employees are ranked through distributive orders e.g. percentages. Lastly, behavioral observation scales are where there is evaluation of special incidents or performances of the individuals (Ngo, 2009 para.9).

Errors and biases and techniques to correct them

Errors and biases that commonly impact the accuracy of performance evaluations include; employee and employer bias, supervisory errors, and performance evaluation method errors. When the method is biased, then the whole process will be faulty leading to wrong evaluation. Moreover, when supervisors discriminate against few individuals, the evaluation will be wrong and this may lead to biased decisions.

Performance evaluations are subject to change to reduce the errors involved. Moreover, when the method of appraisal is wrong, it needs to be changed to give a fair judgment to all employees. All the employees should be evaluated based on individual performance and not group performance (Performance Appraisal, 2001). This will be effective in that, every individual will strive to protect his image rather than hide under the umbrella of a group. Given a situation of performance appraisal that is faulty, it is important to consider where the system gets faulty and rectify it promptly.


The success of any organization depends on the performance of the employees and that’s why their performance should be checked periodically. This should be done without any bias or discrimination and those employees who have performed outstandingly are rewarded accordingly.


Coens, T. & Jenkins, M. (2000). Abolishing performance appraisals: why they backfire and what to do instead. San Francisco, Berrett-Koehler Publishers. Web.

Margulies, J. (2004). Performance Appraisals. ABA Labor and Employment Law Section. Web.

Ngo, D. (2009). Performance Appraisal Methods. Web.

Performance Appraisal. (2001). Performance Appraisal: Negotiated Approach. The Regents of the University of California. Web.

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