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Performance Appraisal: Importance and Errors

Please assist me with information concerning the attached article. I would like to have 500-700 word explanation.

According to Dulebohn & Ferris (1999) performance appraisal represents a central function of human resources management and has remained an important topic of investigation among organization research.
According to Milkovich et al (2014) there are several factors that can lead to inaccurate appraisals, one of the seven listed is spending too little time on preparations of appraisals.

The "FIRST IMPRESSION ERROR" and little time spent on rating the performance appraisal contributed to the situation of a staffing agency my friend works at, an argument started between an office employee (rater) and the field employee(ratee) because the field employee found out that he was rated poorly in almost all of his performance. When he confronted the rater's evaluation of his performance, he found out that he was rated poorly for failing to wear his uniform. This rater never wants to see any field employee not on their uniform when they come into the office. As the argument heated up, the field employee reported that nobody came out to the field to rate his performance and without coming to his work station, the rater would not know how he performed on the job. Finally the management found out that he was rated poorly based on the one time he came into the office without his uniform. The rater did not make an effort to observe or pay attention before rating the employees. The agency had to start all over with the ratings, but this time they sent the rater to the field and also asked them to inquire from other field employees on how their colleague is doing on the job before rating them.
The "FIRST IMPRESSION ERROR" took place in this situation, the rater had a negative opinion of the ratee just because he missed to wear his uniform, and he was rated poorly for that reason.

Dulebohn, J.H. and Ferris, G.R. (1999), "The role of influence tactics in perceptions of performance evaluations' fairness", Academy of Management Journal, Vol. 42, pp. 288-303.
Milkovich, G., Newman, J., & Gerhart, B., (2014). Compensation. New York, NY: The McGraw-Hill.

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Importance of performance appraisal

The case emphasizes that performance appraisal is a central function of human resource management. This could have been because many human resource management decisions are dependent on the results of performance appraisals. These include decisions on compensation, promotion, transfer, and training of employees. Results of performance appraisal as compared to a previous appraisal conducted can be one of the bases of determining salary increases and promotion to a more challenging job.
Strengths and weaknesses of an employee may be identified from a well-planned and properly conducted performance appraisal. Weaknesses identified may form a basis of planning training programs that may be conducted. Strengths and weaknesses identified may also form a basis of decisions on the appropriate ...

Solution Summary

This reports is an analysis of a situation in which performance appraisal was conducted ineffectively. - performance rating criteria were not set, the employees were not informed on how they will be rated, and the supervisor/rater is not aware of the effective way of conducting the appraisal. As such, his first impression about the field worker diluted the rating or score he provided. The case further noted that there was no enough preparation made before the performance appraisal was conducted.

This reporter proposed that performance appraisal should be well planned - set of criteria ( and the corresponding weights ) should be determined before the start of the appraisal. While the employees should be oriented on the components of the performance appraisal system, those who are involved in rating the employees should also be well trained to ensure objectivity in determining the ratings to be given. This is important because critical human resource management decisions are dependent on results of performance appraisal.