Challenges Faced by Managers in Conducting Performance Appraisals in Organizations

Abstract

The process of management involves a continuous judgment on the behavior and performance of staff whose one way of review is through a system of performance appraisal. It is important that members of the organization know exactly what is expected of them, and the yardsticks by which their performance and results is measured. A formalized and systematic appraisal scheme will enable a regular assessment of the individual’s performance, highlight potential, identify training and development needs, improve the future performance of staff and also form the basis of a review of financial rewards and planned career progression. Past researchers have contended that organizations face many problems in conducting performance appraisal ranging from legal issues, gender, race, rating instruments, organizational culture, politics, resources, knowledge, skills, standards as well as the appraisal process itself. This study aimed at investigating the challenges faced by Commercial banks in conducting effective performance appraisal. Both qualitative and quantitative approaches were used in the study, where top and middle management were randomly selected and interviewed by the researcher. Data collection was done through observation, interviews, and questionnaires that were divided into five parts (personal profile, performance appraisal implementation, evaluation of performance appraisal, feedback, and finally the recommendation).

Keywords: Performance; performance appraisal; Organization.