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Appraisal myths
Human Resources » Compensation & Benefits


Chrm Message From: shriram_b1 Total Posts: 10 Join Date: 12/04/2009
Rank: Beginner Post Date: 12/03/2010 05:50:43 Points: 50 Location: India

Dear Forum,

I feel the employees misunderstood the concept of Appraisal. When we issue appraisal forms immediately they are asking, how much increment shall I get. There are not worried about the individual performance or contribution to the organization.

This is true w.r.to the Managers too who are involved in the employees appraisal. How to bust the myths of appraisal? Can anyone please trhow more light on the actual meaning of appraisal and its procedures.

Chrm Message From: karthikeyan Varadharajan Total Posts: 3 Join Date: 12/04/2009  
Rank: Beginner Post Date: 12/03/2010 12:57:36 Points: 15 Location: India

PA refers to the appraisal of the overall job performance of an executive, which may be equal or exceeding the standards/expectations based on a specific role.

The executive comes to know from the appraisal, what was his performance; what was the expectations from him (Which has to be clearly conveyed to him earlier); & where he stands now. The Postive side & the improvements expected from him are put in front of him. It was an oppurtunity to clarify his role & future expectations from his dept.

Chrm Message From: kritibhatnagar Total Posts: 17 Join Date: 12/04/2009  
Rank: Executive Post Date: 22/07/2010 07:17:22 Points: 85 Location: India

hello,

this is true that the concept of appraisal is not clear to the employees as well as managers. Especially in the industries like manufacturing it becomes difficult for HR To make the employees understand the importance of appraisal.

Appraisal is basically :

Performance Appraisal system is a part of ongoing management process, the purposes of which are to:
Provide for systematic planning by allowing the manager to identify critical job elements & objectives.
Conduct a systematic review of employees overall performance & provide constructive feedback.
Provide objective information to guide management decisions on promotions etc.
Establish an objective basis for determining annual performance.

(PROCESS)

1) ESTABLISHING PERFORMANCE STANDARD

2) COMMUNICATING PERFORMANCE STANDARDS TO THE EMPLOYEES

3) MEASURING ACTUAL PERFORMANCE

4) COMPARING ACTUAL PERFORMANCE WITH STANDARDS

5) DICUSSING APPRAISAL WITH THE EMPLOYEES

6) TAKING CORRECTIVE ACTIONS

To burst the myths about appraisal :

HR needs to train and educate its employees:

 as to what exaclty is appraisal

How it is conducted

the process

who all will be involved

Benifits of appraisal like:

helpful in identifying competencies that lack in an employee

In training and development of the employees

in succession planning

to find out the star performers of the organization and work for vretaining them.

can be used to give feedback to the employees as to where they need to improve, which are the areas where they have edge over others. and so on.

Hope this information would be of some help.

Regards,

Kriti

 

Chrm Message From: anup pradhan Total Posts: 2 Join Date: 12/04/2009  
Rank: Beginner Post Date: 23/08/2010 11:30:31 Points: 10 Location: India
Dear Forum,
I would like to share that in most organizations(specially private sector), where the appraisal process is carried out with regard to performance, there exists a sense of fear in minds of subordinates that his superior may be having benefits for what originally has been done by the subordinate himself.
according to me, to overcome this type of inflexibility, the appraising HR specialist must have access to all employees in a more cohesive manner.
Chrm Message From: debora Total Posts: 108 Join Date: 12/04/2009  
Rank: Leader Post Date: 06/01/2020 11:01:04 Points: 540 Location: India

Myth #1: It’s easy
Despite common belief, appraisal assignments are varied, challenging, and complex. Rarely do appraisers encounter cookie-cutter houses with abundant comparable properties that are “easy” to appraise. Many people don’t realize that several additional hours that go into completing an appraisal beyond the relatively short time it takes to complete the onsite appraisal inspection.

“A borrower commented after my observation of the subject, ‘Wow that’s it?! I should become an appraiser.'”

Myth #2: Appraisers determine or “make” property value

“Many clients blame us for creating their increasing and decreasing values. This is not true. The buyers and sellers create these values by their actions in the market.”

“The appraiser’s job is to find the objective market value based on the condition of the home.”

Myth #3: Appraised value = market value or price per square foot “Appraisals are not the result of exact science, it’s an opinion of the value of the home. This has nothing to do with what the buyer will pay or what the seller should accept.”

“Most homeowners think price per square foot equals value.”

“Realtors use price per square foot, and most owners are stunned if value is below what is expected because they hear from realtors and news articles that all the stats on home values are with data on price per square foot.”

Myth #4: Appraisal inspection = property inspection

“A home inspector’s job is to uncover things that are problematic or could potentially become problems with the residence, while the appraiser’s job is to find the objective market value of the property. Totally different reports with different objectives.”

“Although appraisers do an ‘inspection’ of the home we are not trained as a home inspector. The appraisal inspection only reports what can be seen and how it relates to comparable homes in the market. An appraiser does not test for functionality of systems and cannot determine the potential hazards or malfunctions that a licensed home inspector can. It is always a good recommendation for a home inspection to be done prior to purchase.”

Myth #5: There’s a shortage of appraisers
There has been quite a bit of debate over the past few years as to whether the appraiser shortage is myth or fact. One appraiser speculates, “This is a myth created by the AMCs. It helps them cover their butts when a report doesn’t come in on time.”

More myths about appraisal
In addition to the five most popular answers listed above, here are some additional myths that members of our appraisal community pointed out:

“Many people believe we relay our results to municipalities which in turn can affect property taxes.”

“That a single appraisal is the same as an assessment for taxes, or that they should be equal.”

“That appraisers can magically locate comparable sales that will justify the purchase price/re-finance amount.”

“That we get paid what the borrower has paid for the appraisal.”

 That a real estate agent can complete an appraisal.

That an appraiser works for the buyer.

That the “appraiser is able to estimate the value up to the dollar.”

“That it takes little education/experience to become certified “