Most organizations do use some form of performance appraisal system in their workplace. They use performance appraisal system as a communication tool that bridges the barrier between employees, top level and the management. It is also an integral part of the compensation system. However, a lot of times, appraisal related processes are poorly designed and implemented which is why organizations feel that performance appraisals are not done effectively.

1. What are the signs that your performance appraisal system
isn’t working?
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It is important for organizations to implement performance management
software/system and most organizations do use some form of performance appraisal
system in their workplace. They use performance appraisal system as a
communication tool that bridges the barrier between employees, top level and the
management. It is also an integral part of the compensation system. However, a lot of
times, appraisal related processes are poorly designed and implemented which is why
organizations feel that performance appraisals are not been done effectively.
A few signs that performance appraisal system isn't working are
described below.

All employees evaluated on same factors: It is impossible to evaluate
employees of all levels and from different departments on same factors or

2. competencies. For eg. A marketing professional and an IT professional will have
different factors and competencies to be considered for evaluation.

Measuring attributes are not well defined: The difference between poor,
average and outstanding should be well defined and understood by the
employees and the appraiser.

Inconsistent evaluation among appraisers: The system should prompt the
appraiser to give consistent comments and numbers to the individual
employees.

All the employees are rated on an average scale: When all the employees are
rated to be average or below average, low performers will never make an
attempt to improve and very high performing employees will be de-motivated.

Appraisals are not complete in time: Top levels are always occupied with
number of other things that participating in appraisals might just slip out their
mind. Reminding them to post their feedback manually is next to impossible
and without their comments and ratings, the appraisal process is not complete.
Therefore, it is better to have an automated system.

No slot for employees input: Self evaluation also holds great value during
performance appraisal. If a system does not have a slot for employees input,
the process is again incomplete.

System lacks customization: If the system isn't tailored to an individual
employee's position, strengths, weaknesses or career path are not particularly
useful.

Lacks confidentiality: If the system is not programmed to be confidential, the
employees will begin to compare themselves to what others do and receive.
This creates low morale among the employees and conflicts.
If you come across any one these signs in your appraisal system, decide to consider
a proper performance management system/software.
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