Performance evaluation is a massive industry globally. In the USA alone, as per data provided by marketing research firm CEB (Corporate Executive Board), it is an activity that takes away billions of dollars’ worth each year. A study conducted on Fortune 1000 companies however, shows that in spite of the amounts spent, the overall productivity of such sessions seems low, as about two-thirds of appraisees report being dissatisfied with them. This is mainly due to the fact that people do not like getting compared with others. Most employees prefer if the appraisal is done on temporal basis, with comparisons being made about their own fluctuating performances at various times within any period rather than against that of others. The latter form is known as social comparison evaluations. Surprisingly, this preference for temporal comparisons stands true even when the one evaluated is actually praised. Thus, companies would be well-advised to keep their appraisals temporal rather than social comparisons.


Uploaded Date:17 May 2018

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