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According to Krein (1990) appraisers should not tackle employee directly with criticism. These appraisers must aim towards the appraisal interview and they must focus on the poor performance that emerges with the course of appraisal interview (Grote 2005). This process of self auditing can be done through open-ended questioning techniques and employees must be motivated to identify their own problems and they can easily rectify it. Employees must be motivated to talk to their supervisors and they must be encouraged to talk freely about their own performance.

Blunt statements or accusations must not be used. Employees must be encouraged to comment on different situation through which the conflict can easily be resolved. If the superior develops a polite way of addressing things then the subordinate might admit his/her weakness. Krein (1990) describes this situation as self auditing and he believes that this phenomenon encourages the employees to tackle issues related to performance and work. This technique also helps the employees to promote discussion and agreement on the need for change.

These techniques develop an arbitrary attitude among employees and employers . 4. 2 Ownership of problems Employees develop a sense of ownership in the organization and employees believe that their problems are

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addressed by the organization. Change and development can easily be stimulated within the organization and sense of ownership can be the basis of this change. When negative feedback is provided then the appraisers must support their opinions with examples and referrals to past experiences. In this scenario vague generalizations should be avoided.

The organization must carefully scrutinize their perceptions, motives and prejudices regarding their employees. 5. Biasness in Performance Appraisals Performance appraisals sometimes represent a certain level of biasness for certain employees and this biasness can depict a negative attitude among the employees of the organization. Gabris and Mitchell have discussed this disruptive effect as the Mathew Effect. This effect is said to occur when the employees of the organization keep receiving the same results for different years.

Employees can easily judge this activity and they might depict their negative behavior towards their organization. These generalized results go on like this that if they have done poorly then they will continue their poor performance and if they have done well then they will continue to do well. The Mathew effect stress on the point that past effect of employees would prejudice their future attempts to improve (Grote 1996). A study by Heneman, Anonyou and Greenberger (1989) supports this theory that poor performance in the organization might not be given a fair chance to improve.

This study involved supervisors of 40 different organizations and these subordinates would be divided into two groups: in groupers and out groupers. The in-groupers are subordinates that are favored by their supervisors and they enjoy a high level of trust and involvement in terms of support and rewards. On the other hand out-groupers don’t possess a healthy relationship with their supervisors and they are permanently out of favor (Guerra-Lopez 2008). They experience elements like distrust and criticism. Supervisors on the other hand seek evidence that supports their opinion.

Biasness in performance appraisals arises when an in-grouper performs a task poorly and it is overlooked by his/her superior. Similarly, when they did well their success is admitted and they receive applause in the form of extrinsic and intrinsic rewards. On the other hand a well performed task by an out-grouper is rarely attributed. Similarly, if the task is poorly performed then the supervisor addresses this situation quite seriously and relates the failure of a certain task with laziness or bad timing. Therefore the criterion of judging in-groupers and out-groupers is not reliable and equitable.

This biasness in the behavior can lead to distortion in the entire appraisal process. Employees can develop a sense of prejudice against the organization and this can lead to frustration for employees who are discriminated. 6. Summary Performance appraisal is considered to be an important aspect of every organization and subordinates and supervisors both stresses a lot on evaluating the performance of each other. Performance appraisal can considered as the process of assessing and recording the staff performance for making important decisions about the staff.

It is considered as a highly interactive process and it involves employees of all levels. The core objective of this research project is to determine the effectiveness of performance appraisals and how these appraisals can affect the organization. The specific problem which is addressed in this project is that what is the impact of performance appraisals on employees? A generalized approach is maintained in the entire research and qualitative analysis is used in this project. Different social, legal and ethical issues are discussed in the paper and the paper focuses on the effectiveness of performance appraisals.

The benefits of this research to other researchers are wide and wide and different organizations can use this research to improve the performance of their employees. Similarly, the findings and discussions of results can help different researchers in developing a mindset that performance appraisals are beneficial for the employees and every organization must adopt a proactive approach in preparing their performance appraisals. Biasness and prejudicial approach must not be followed by organization in creating performance appraisals.

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