How to reduce subjectivity in a performance appraisal?

Performance management depends on a lot of factors, but not all of them are related to an employee. A good part of the appraisal also depends on the appraiser or the rater, and their perception of the employee’s performance. When assessment and evaluation come into the picture, bias cannot be ignored. Whether it is personal or professional, a bias prohibits an appraisal from being effective in its totality. Fortunately, there are a lot of techniques to identify and overcome or reduce this subjectivity in performance appraisal. This article highlights some of the methods. But first, let’s take a look at the types of biases commonly found in appraisals.

Common Biases that Affect Performance Appraisals

The Halo Effect

The halo effect is a bias created by employees who make it a point to stay in their boss’ good books. They highlight contributions made to projects or tasks assigned by the boss or shine in only particular fields. This gives an impression of excellence and sincerity, and they create a halo around themselves.

Horn Effect

This is a negative bias that is typically formed by employees who aren’t doing much about impressing their seniors. They are good at their work, but not at the fore. This often leads to them going unnoticed.

First Impression Effect

This bias is developed depending on the kind of the first impression the employee makes in front of the boss or senior management.

Recency Effect

In this type of bias, the appraiser evaluates an employee on their last impression before the appraisal.

Stereotyping

This is an entirely personal kind of bias, which can be positive or negative depending on the appraiser’s preconceived notions about ‘good’ and ‘bad’ employee traits, and what characteristics the employee displays.

Spill Over Effect

In this type of bias, the evaluator goes beyond the current appraisal period and rates the employees based on performance in the distant past.

Personal Tendency to Rate

This is the final type of bias where the appraiser just shows a general tendency towards ratings. For example, someone may be too strict or too lenient. Another appraiser may have a tendency to be generally neutral.

Ways to Overcome Performance Appraisal Biases

Creating Awareness

Many times, appraisers are unaware of the existence of these biases since they exist at a subconscious level. An effective way of reducing subjectivity is by making employees aware of its existence, and educating them on ways to realize it. Doing this close to the appraisal season will be more helpful.

Using Objective Ratings

Often times, the ratings that appraisers are supposed to choose from have subjective tones. For instance, ‘meets deadlines’ is a more objective rating than ‘exceeds expectations’ or ‘follows all orders’. When there is even a small scope for interpretation, subjectivity comes into the picture. Hence, organizations should develop ratings that are to the point, unbiased, and objective.

Increase Frequency

When a lot of time lapses between an event and the actual appraisal, then while recollecting it, the brain often tends to muddle facts or replace them with what it thinks is right. This is true for performance appraisals as well. When conducted after long lapses of time, appraisals can be inaccurate, because they depend on the rater’s memory and its veracity. It is a good practice to conduct appraisals half-yearly or quarterly, helping the appraiser recollect events more easily. Another technique is to take frequent notes of an employee’s performance, like a performance appraisal tool, which can later be used to write an appraisal that’s more accurate and fair.

360-Degree Feedback

It is a given that appraisals are more impartial and dispassionate when more people are involved in the process. The power of majority comes into play here; the larger perception of an employee’s performance is generally more accurate than that of one person. The reason behind this is that not all of the raters from any group are driven by personal or other biases. Most of them are impartial and unbiased.

Parting Thoughts

Impartiality is extremely important in performance appraisals. Since it is an evaluation of an employee’s professional performance, it can affect his/her morale, confidence, and work. Identifying this subjectivity and reducing it is hence crucial for the development of an organization and its employees.

Would love to hear your thoughts

Suggestions and comments welcome

Rakesh Jain

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