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establishing relationship between performance on tasks and a clear potential for reward. Thomas(1990) told five outcomes i.e. use of evaluations as feedback to improve performance, reducedemployee turnover, increased motivation, existence of feelings of equity among employees,linkage between performance and rewards (Nurse 2005).Problems in Performance Appraisal Ideally, rating supervisors should be completely objective in their appraisals of employees. Eachappraisal should directly reflect an employee’s performance, not any biases of a supervisor. It isimpossible to do perfectly as most raters either intentionally or unintentionally commit errors.Raters need to be aware of these biases, so that their effect on the appraisals can be limited oreliminated. According to Abu-Musa (2008) some of these errors are: Unclear standards:Different supervisors would probably define good performance, fairperformance, and so on, differently. The same is true of such traits as quality of work orcreativity. Lack of Objectivity: A potential weakness of traditional performance appraisal method isthat they lack objectivity. In the rating scale method, for example, commonly used factorssuch as attitudes, loyalty, and personality are difficult to measure (Mondy et al, (2002)Page | 9
Bias:Rater bias occurs when a rater’s value or prejudices distort the rating. Rater bias maybe unconscious or quite intentional. If a manager has strong dislike of certain group, this biasis likely to result in distorted appraisal information for some people. (Mondy and Noe, 2005).Leniency/Strictness:Giving undeserved high rating is referred to as leniency. The behavioris often motivated by a desire to avoid controversy over the appraisal. Strictness is ratingsubordinates on the lower level of the rating system.Central tendency: Central tendency is a common error that occurs when employees areincorrectly rated near the average or middle of the scale (Mondy and Noe, 2005).Recent Behavior Bias:When rating is not based on the entire appraisal period and just onthe last month of the appraisal this is called recent behavior bias (Mondy and Noe ,2005).Personal Bias:This pitfall occurs when supervisors allow individuals differences such asage, religion, seniority, sex, appearance or other arbitrary classification to affect the ratingthey give to appraise (Deblieux, 2003: Roth well, 2012).Performance Appraisal and Employee CommitmentPerformance appraisal has enormous effect on the commitment of employees to work as it makesmajority of the respondents work harder than expected (Beer, M. et a 1978). Beer observed thatperformance appraisal assist to improve the work performance of employees by helping themrealize and use their full potential in carrying out their firms mission and also to provideinformation to employees and managers for use in making work-related decisions. One of themost important success factors in today‘s competitive business environment is an energetic,competent, motivated, productive and highly committed and innovative human resource. Withthe realization that Human Resource