In today’s rapidly evolving corporate landscape, traditional methods of employee appraisal are increasingly seen as outdated and ineffective. Many companies still rely on downward appraisal systems, where direct reports are evaluated solely by their supervisors or immediate reporting managers. This conventional approach often lacks transparency and fairness, leading to issues like the horn effect, halo effect, and reverse halo effect, which can significantly undermine employee morale and satisfaction. To address these shortcomings, the adoption of upward appraisal systems is emerging as a crucial development in modern human resource (HR) practices. This article explores the benefits of upward appraisal, its impact on organisational culture, and why it is becoming the preferred choice for professional corporations and Indian multinationals.
The Limitations of Downward Appraisal Systems
The traditional downward appraisal system, where only supervisors assess their subordinates, has several inherent flaws :
1. Bias and Subjectivity...
