Factors Affecting Performance Appraisal

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Factors Affecting Performance Appraisal

Performance appraisals are carried out by every organization to review the performance of its employees, and reward them accordingly. In this article, we will try to know the factors that affect performance appraisal.

Performance appraisal is one business activity that most of employees look forward to. After all, this is one of the most important factors that drives employees to put in that extra effort in their jobs day-in and day-out. Performance appraisals are conducted to review the performance of the employee, and decide his/her compensation package according to his/her achievements. Performance appraisal may not be a very exciting proposition for those employees who have not performed as per the expectations, but it is nevertheless important as apart from revising the salary; performance appraisals also help in setting core competencies and future goals for the employees.

Factors Influencing Performance Appraisal


The appraisal of an employee is directly dependent on the performance that he has shown over a period of time. Every business wants to maximize its profits and depends upon the collective effort of its employees to achieve it. If certain employees perform up and above the expectations and help the company to achieve better results, the organization would appreciate their efforts and give them a raise in their salary. However, employees who have not performed to their full potential and have not led to any major contribution to the company may not find any such favors from the organization.


The way you behave in your office also has a huge impact on the appraisal process. If you are known as a team player and help your colleagues to improve their performance, it is highly likely that the organization would recognize your efforts and reward you handsomely. This is one of the prime reasons that some employees whose performance has not been exceptional still manage to have a healthy raise in their appraisals. On the other hand, if you are someone who spreads rumors and negativity in the workplace, there is a possibility that you would have a tough time during your appraisals.

Attendance and Punctuality

While it is OK to take a day off once in a while, but frequent absenteeism can hamper your appraisal. Once you start calling in sick, your managers develop a negative perception which is hard to shed. Tardiness on your part can also affect your appraisal as an organizations put this to intense scrutiny. Various surveys have found that ‘average’ employees who have lesser absenteeism and are punctual get more favors from the managers, and this is one of the important factors that plays a part during your appraisal.


Assertiveness and motivation are important characteristics that every organization looks forward to in their employees. Employees who go about their jobs with vigor and excitement, take initiatives and show a desire to perform exceptionally are looked upon highly by the managers. Employees with a positive attitude and self-belief are respected by the organization and are likely to be rewarded for their efforts.

Process Knowledge

A friend of mine was disappointed when she came to know that her colleague had been awarded a higher rating than her, even though she had generated more sales. She was in a dilemma for a few days before her manager sensed the situation and decided to have a word with her so that there is no ambiguity. He told her that, the reason she was not able to get a very good rating was because she lacked process knowledge. Ignorance about your products can hamper your customer experience besides marring the reputation of your company. When you do not know enough about your products, it is difficult to convince the customers about the benefits that they will derive from it.

Organizational Skills

Organizational skills reflect to your managers that you know how to prioritize your more important tasks. A well-organized employee is always ready for any additional responsibilities and the managers can trust him for his ability to get something done. Organizational skill is an important attribute and plays an important part in the appraisal process.

Customer Service

If you are someone who has generated a lot of revenue for your company at the cost of your customer service, then there is a likelihood that your managers would not be able to rely on you, and your relationship with them would be marked by a trust-deficit. Customer complaints are crucial for an organization and can also result in a possible disciplinary action being taken against you.


The way you dress up to office also plays an important part in determining the course of your appraisal process. Employees who are presentable are more likely to create a positive image in the minds of managers than employees who are disheveled and do not dress up poorly to office.

Biased Managers

These factors are disadvantageous for an organization and promote ill-will and negativity in an organization. Managers sometimes show bias towards employees with whom they have a friendly relationship as compared to those who are just acquaintances. This creates nepotism and negativity in the workplace and hampers the morale of hard-working employees.

These were some factors that affect an appraisal process. It is important for an employee to ensure that he puts in an effort to contribute effectively to the organization and managers have the added responsibility of ensuring that they are able to carry out the appraisal in an effective and transparent way.

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