An Investigation of Performance Appraisal Methods and Associated Challenges in Bangladesh

Abstract

Performance is something that an employee leaves behind for the employer. Just and proper appraisal of performance can improve employee performance, and consequently, the organisation’s productivity. The present study investigates existing performance appraisal methods and their challenges in Bangladesh. To investigate the research problem, a conclusive, descriptive, single cross-sectional research design has been adopted. Mixed sampling approach is used to select sample respondents from different organisations across Bangladesh. To analyse the data, multiple linear regression method has been applied for the purpose of the study. The study has identified appraisal of irrelevant issues, less support from the authority, the chance of error by the rater, inappropriateness, less frequency, biasness, less reliability, less self-appraisal, expensive, one-way process, no second review, no appeal, less team appraisal, feedback, time-consuming and complex, and less reward as the problems associated with the performance appraisal methods used by selected organisations in Bangladesh. The study recommends paying careful consideration to the identified challenges related to the institution, process, instrument, and rater, to make performance appraisal a success, since an effective performance appraisal system leads to improved productivity, employee development, employee retention, and helps identify employee training needs. Social exchange and reciprocity motivate employees to show high performance and contribute towards the organisation’s growth.

Keywords: Performance, Performance Appraisal, Performance Appraisal Methods, Challenges, Employee, Assessment

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