Problems with performance appraisals

One of the most complex problems  associated with the HR profession today is performance appraisals. Be it the IT or the manufacturing sector the HR professional want to avoid a complex system. However in order to attract the best of the talents in different sectors the HR professionals have to come up with new and innovative performance appraisal system.

However there are always certain problems which you can face when implementing a new performance appraisal system. There is always a large amount of doubt not only among the employees but also among the HR professionals .

Some of the most common problems associated with performance appraisal are

1) Budget :- Budgetary allocations is always the driving force while allocating a bonus or a raise from the current salary.

2) Bell Curve : No matter where you go bell curve follows you. No matter how good or bad your employees are you always have to put certain employees below the 15% bracket .

3)Confusion for employees :- The employee can easily get confused if there multiple factors which governs his performance appraisal. Whether he should aim for quality or quantity ?

Hence while designing a performance appraisal system you always have to keep these topics in mind .