How do factors such as the influence of liking, organizational politics, and employment laws affect the performance appraisal process? What can firms do to address these issues?
What will be an ideal response?
Answer: Summary of suggested answer –
• Influence of liking – When the manager likes or dislikes an employee, it influences the rating by introducing bias. It can be good if a manager likes good performers and dislikes poor performers. It can be bad if a manager's likes/dislikes are idiosyncratic. Solution: use of performance diaries.
• Organizational politics – Appraisals can be political. The use of appraisals can be seen as a tool for moving certain managers' agendas forward. As such, individuals and their careers can be compromised. Managers must make sure to use a rational approach where the focus of the appraisal is on behavior measurement and not management agenda.
• Legal issues – The major legal issues of a performance appraisal consists of validity and adverse impact. To avoid these legal issues, it is advised that managers use job analysis, written instructions, an employee review process, and multiple raters in the performance appraisal process.
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