Pitfalls of Performance Appraisal

• Performance appraisals provide employees with constructive feedback if conducted properly. Alistair Berg/Digital Vision/Getty Images

  Performance appraisals are probably the one aspect of a job that employees, supervisors and managers universally dread. There are, however, ways to improve the process and outcome by avoiding common pitfalls. Some pitfalls of performance appraisals include supervisor bias, rushed and ill-prepared evaluations and lack of communication in the appraisal process.

The Problem of Recency Bias

• A performance appraisal evaluates an employee's work and habits over a set period of time -- 12 full months for an annual appraisal -- yet some supervisors and managers consider, or remember, only the employee's most recent work. Human resource professionals refer to this pitfall as recency error or recency bias. To prevent recency error, give employees feedback throughout the year and consistently document informal feedback and commendations, as well as disciplinary warnings and corrective action.

  The performance appraisal is just one aspect of fostering a productive work environment, however some managers tend to overlook the importance of year-round feedback because the primary focus is on the annual or periodic evaluation. It's the year-round feedback that helps you compile information that will help you prepare for your employee's performance appraisal.

Poor Preparation

• Supervisors must prepare well in advance for the formal appraisal meeting with an employee. A performance appraisal can directly impact an employee's career, lifestyle and job satisfaction, therefore supervisors must spend the time and effort to prepare a well thought out and accurate review. Preparing for the appraisal meeting includes reviewing the employee's job description, personnel file and anything else related to the employee's work history and performance. Supervisors who do not adequately prepare for performance appraisals are doing a disservice to employees and the employer if problems subsequently persist and stellar achievements fail to be rewarded.

Communication Problems

• A common pitfall of performance appraisals is lack of supervisor-employee communication, especially if both parties are nervous or uneasy during the process. A supervisor who is uncomfortable giving feedback in a positive and constructive manner may need additional training to improve her communication and leadership skills. A supervisor must know how to encourage two-way communication during the appraisal meeting or risk turning a potentially productive experience into one that leaves the employee frustrated and unappreciated.