Performance appraisals are fundamental to the positive growth and development of any organization. However, the manner in which they are conducted should be carefully chosen. Using them as a weapon to hurt the sentiments of any employee indicates misuse of a vital organization development technique. The end result that an organization must aspire for is the use of smart performance appraisal as a tool to cut down on wasteful operations and processes, instead of chopping down people.

1. Ongoing Debate on
Performance Reviews &
Appraisal : Do Performance
Reviews Make Us Any
Better?
Before the arrival of a new
Financial/Economic Year
there is a buzzing sound in
each and every small or big organization : Performance Review and subsequently Appraisal. After
all every employee is waiting for his/her appraisal on a whole year of working which shall remain
for the next whole year. Every employee has a love-hate kind of a relationship with performance
appraisals. They love it because it’s the only way to reach better packages. And, they hate it for the
fact that it does not make their performance any better.
The usual scenario is somewhat like this – on any given day of a month you might be informed
that it is the day when your efforts will be evaluated. It feels completely like judgment day when
your fate is to be decided. You rejoice, and at the same time, are nervous too.As an employee, if
you have done your work wisely, you will love the one-on-one meetings. But, if you haven’t been
giving your hundred percent to work, it won’t be a pleasant time. Sometimes your 100% work also
does not provide any visible output and hence it becomes a part of a game i.e. You Win or Loose.
Here we'll discuss on both sides of a coin i.e. Pros and Cons of Performance Review.
Debate for Performance Review/Appraisals
No one likes to keep ticking boxes and randomly rating someone on a scale of 0-10, obviously
where 0 means a dead-end. However, this is true only when appraisals are considered just another
activity that has no potential to make a difference. Emphasizing the fact that performance reviews
are often used as an effective method of downsizing makes it clear why no one but the employer
ends up benefiting from the activity.
Cutting down on human capital was never the objective of performance appraisals. “You should
feel the review is part of a partnership, not something imposed on you from above. So once the
paperwork has been done, your Line manager / boss should be involved in what happens next,
either providing support and coaching or making sure there’s the right environment to develop.
This might include ensuring time, training budget or different kinds of work experience are
provided, for example.” After all the growth of a trained employee directly proportionate to the

2. growth of the Employer.
Debate against Performance Review/Appraisals
There is a basic mismatch between what the HR Department demands and what the employees of
the organization deliver. It is during the time of the appraisal rigmarole, that the loopholes become
visible and discussion on that topic become rigorous.
Sanjay Kapoor, Director & CEO of Iris-Corp, says employee performance reviews rank with root
canals on the list of least favourite things to do both for employees and managers. He argues that
the debate over the utility of performance reviews centers on a forced ranking system not only
purports to identify the top performers, but also the under performers who can subsequently be
'advised' to leave the organization. Once again, completely from a psychological perspective, it
should be stressed that the brain often shuts itself to what is known as constructive feedback. It
should also be pointed out and noted that the brain is not wired against the feedback inherently,
but against the mode and consequences of the feedback.
Performance appraisals are needed in today’s complexed organizations. They improve the
performance levels of the workforce and act as an eye-opener. It conveys a subtle message of
competition, where employee's appraisal tends to allow him to introspect why he/she could not do
better and and how he/she can do much better. The only threat is the person who does the appraisal
needs to take on a mentoring platter than punishment. The fact that it is divulged to him/her that
he/she has not done well itself is a punishment. Care should be taken to sensitively deal with the
person, if possible in privacy, and be absolutely unbiased. Finally, performance appraisals must
focus on the vision/mission of the said organization and operate on a philosophy – ‘Penny Saved,
Penny Earned”.
Performance appraisals are fundamental to the positive growth and development of any
organization. However, the manner in which they are conducted should be carefully chosen. Using
them as a weapon to hurt the sentiments of any employee indicates misuse of a vital organization
development technique. The end result that an organization must aspire for is the use of smart
performance appraisal as a tool to cut down on wasteful operations and processes, instead of
chopping down people.