According to Mondy (2002) “Performance appraisal is a formal and critical system of review and evaluation of an individual or a team’s job performance.” (p. 279). In most firms, however, performance appraisal pays more attention on individual employee’s performance rather than the accomplishment in group. Moreover, the achievements and develop plans of individual employee as well as the team development, aims, objectives should be able to assess by an efficient performance appraisal system. When employees done well in their task or fail to achieve the target of job, all these performance will be detected by a performance appraisal system.

Figure 1 The Performance Appraisal Process
The figure 1 shown above is the process of performance …show more content…
Work standard contrast every employee’s performance to pre-determine the standard of output. They will use the average output of workers that operating at usual pace as measurement. This method is more likely to apply on production work other than the rests. Objectivity is the benefit of work standards but must with the presumption that employees clearly know the ways of standards set. When all employees from a group are rank in order together of entirety performance, this firm is using ranking method. They only compare based on a single standard. Next, the paired comparison method is a variation of ranking approach. It compares each employee’s performance with every other employee in group. It often use single criterion too. But this method has a disadvantage that is the employees being promoted is not for the reason of they achieve target but because they do better than others in team. Appraisal approach that tends to act like a frequency distribution which means rater allots individual employees to a limited number of categories is forced distribution method. It has the assumption of same distribution of rank among all groups of employees and this make no sense only if worker is chosen randomly. Most managers are not likely to apply this method normally. Behaviourally Anchored Rating Scales (BARS) is the last method to appraise an employee. This approach combines the elements of traditional rating …show more content…
Appraiser discomfort is the first problem. This system cuts down the managers’ time to do their job. And if the employees do not perform well and then receive a bad grade in appraisal system, they will have an unpleasant experience. For example, sometimes, in the rating scale method, there are difficult to measure factors like attitude, loyalty and personality. And these factors have little related only with the job performance. This problem is called lack of objectivity. Employee appraisal that primarily based on the personal characteristics might let the company and the rater get into an unstable position. In short, the company may find hard to show the relationship between these factors and job. Halo error will distort the appraisal system too. This issue turns up when a manager tends to summarize a single positive performance factor to all performance side of a worker. Next is the leniency, it is a circumstance when employee was given an undeserved high performance appraisal rating from evaluator. It is most pervasive when a subjective performance standard used. Leniency may let management fail to identify the shortcoming that should be amended and finally company will find it is hard to recognize and terminate the employee that is performing below the standards. While strictness is an antonym of leniency that means manager is over underestimated a