Performance Evaluation - Scientific or Instinctive ?

Performance evaluation is a sensitive and contentious part of the employee engagement system. By definition, it is the assessment of work results vis-a-vis job responsibilities. Many decades earlier, this subject was discussed in hush-hush tones in the Organization. Today, it is a subject matter of existential imperative and forms the lifeline of the job spectrum. Despite the transparent and scientific evaluation systems, the modules are full of contrasting perspectives, non-uniform approaches and differing viewpoints. There is a plethora of assessment techniques ranging from Immediate Manager-led appraisal to 360 degree feedback mechanism. While all these systemic models attempt to relate output with expected criteria, the quantifiable portion in assessment is minimal. The qualitative aspects of evaluation dominate the process which inevitably leads to subjective outcomes.?

It is not my intention to delve into evaluation techniques, their comparative merits and demerits for which a number of treatises and books are available for study. There are a few typical issues, apprehensions and constraints in the evaluation process which lead to silent conflicts and remain as a bone of contention and irreconcilable differences. Though the process is less opaque in the present times, the lurking fears and concerns have a tendency to explode into serious issues.?

A major source of consternation in the Appraisal process is the creeping discomfort on ' Appraiser Bias '. This certainly exists, albeit in a veiled form, since evaluation ultimately boils down to ' feel good ' factor, working comfort and reliability. After all, many working executives in core industries do not innovate on a daily basis to keep the Appraiser in total awe. The execution of routine functions within specified timelines and performed with finesse and minimum complaints is what is generally expected of them. Even though target-based achievements are significant, qualitative impressions also carry sufficient weightage in assessment.This is a ticklish zone where subjectivity brushes shoulders with facts and figures, clouding the judgment in comparison.?

In this context, the theory of halo and horn effect comes into play. In simpler terms, halo effect in performance evaluation occurs when appraising managers develop a dominantly positive opinion about an employee based on the specific impression created over a period of time.This may sideline objectivity in assessment and the overwhelming feelings sway the decisions in the person's favour. It is an unconscious bias where performance is viewed through the lens of experiences. In most of the instances, the personality, character and utility of the individual tilt the scales in his favour. Similarly, the horn effect leads to negative bias as against the positive bias created by the halo effect. Some typical examples of halo and horn effects are given below :

1) Good Communication skills but poor results?

2) Indispensable but mediocre calibre?

3) Timely execution but poor team player

4) Excellent performer but over aggressive?

These examples and other typical personality traits essential for growth overshadow normal evaluation criteria which leads to ' Appraiser Bias '. Another area of such bias, known as ' Recency effect ' also leads to twisted assessment. Recency effect is the tendency to be influenced by recent instances of performance or functioning instead of having an overall view.This is a clear case of Appraiser bias since he forms an opinion on the recent results and incidents without an overall perspective over a period of time.

Halo and Horn effects cloud managerial judgment considerably since few dominant traits or incidents lead to irrational biases. This not only leads to unfair decisions which may frustrate other people. So, morale is the poor victim and halo effect may result in complacency and horn effect in dejection. It is essential for Managers to be more objective in evaluation by eliminating such cognitive biases, modify approaches for improving decision skills on a long term basis.?

Rajarao Kumar?

Bengaluru?