Your opinion either in support of or against Performance Appraisals and explain why

3. Subjectivity and Bias (Inaccurate and Unfair)

Traditional appraisals are notoriously subjective, leading to various forms of rater bias, such as:

Recency Bias: Managers disproportionately weigh events from the last few weeks, ignoring nine months of solid work.

Halo/Horns Effect: A single outstanding or poor project colors the perception of overall performance.

Central Tendency: Managers avoid extreme ratings, clustering most employees in the "meets expectations" category, which fails to differentiate high and low performers effectively.

"Forced Ranking": Some systems require a fixed distribution of ratings (e.g., only 10% can be "top performers"), forcing managers to downgrade good employees, breeding internal competition and resentment instead of collaboration.

These biases erode trust in the process and can lead to demonstrable pay and career progression disparities among different demographic groups.

Recommended Alternative: Continuous Performance Management

Instead of the annual PA, organizations should adopt a system of continuous performance management focused on frequent, informal check-ins and future-oriented feedback.

Sample Answer

Arguments Against Traditional Performance Appraisals

My opposition is rooted in the widely documented psychological, practical, and organizational flaws of the annual review process:

1. Focus on the Past, Not the Future (Ineffective for Development)

A key purpose of PAs is development, yet the process is inherently retrospective. Managers and employees spend time debating ratings based on past behaviors, rather than focusing on future growth. This is a missed opportunity, as effective coaching requires timely, forward-looking guidance. A single annual discussion is insufficient to drive meaningful behavioral change.

2. The Conflict of Dual Purpose (Compensation vs. Coaching)

Performance appraisals fail primarily because they try to serve two conflicting masters: evaluative judgment (for pay/promotion) and developmental coaching (for growth). When a discussion directly links performance rating to salary, the employee's natural defensive reaction shuts down any willingness to receive constructive criticism. Employees focus on justifying their past performance to secure a higher rating, making it an exercise in self-justification rather than honest self-reflection and development planning.