Following are the limitations of performance feedback:
1. Performance Feedback is provided Only during Annual Performance Assessments: The feature of these programs is that the feedback is given just one time on a yearly basis.
The actual meaning of an annual performance assessment is to express the problem – but it is not sufficient to provide feedback to the employees only once a year regarding their performance.
It is necessary that individuals should regularly have both favorable and adverse feedback with respect to their work.
If the individual comes to know regarding his performance just once a year, then he will be left uninformed about his performance on a continuous basis.
Thus, it is necessary to provide performance feedback on a continuing basis all over the year.
2. Performance Feedback is based on a Single Assessor: Usually, the performance feedback is taken from a single person, i.e., the immediate supervisor.
The main drawback of this approach is that the supervisor’s decision can be affected by a number of variables.
The variables can be a dispute, rivalry, biases, jealousies, philosophical differences, etc., which may not actually be related to the job performance.
These factors may prevail at any level amongst the superior and the employee being appraised. Even in the absence of these negative factors, can be some problems with the superiors not having the time to effectively understand the manner in which the job is being performed by the individual.
There may be many employees under the supervisors for whom they have to perform the evaluation. Due to the wide range of responsibilities, they may provide feedback only once a year, which is again a challenge for them.
3. Performance Feedback Deals with Merely the Formal Side of Job Performance: The manner in which an employee performs against some pre-specified objectives or goals is usually addressed by annual performance feedback.
Other facets of an individual’s performance are also there, which normally are not cited in such formal and structured review.
These may be seen as insignificant things that do not appear to merit mentioning in the circumstances of presenting the complete performance rating of an individual.
The outcome of the efforts of an individual in the previous usually emphasized by annual performance assessments.
The behaviors which are required to accomplish these anticipated outcomes are not normally addressed by it. These are the things that are often personally sacrificed by the individuals and of which they feel very proud.
There are a number of efforts which are involved in this and which frequently remain unrecognized like staying late in the office arid coming early to work, working in spite of illness and personal problems, substituting for colleagues when they are absent, etc.
4. Performance Feedback is a Double-Edged Sword: Performance feedback is apparently a double-edged sword; many innate difficulties are present in this system, which connect performance assessment to merit raise in the same way as the problems are present in systems that do not connect both of them.
The connection of these systems together has the capability to encourage and reward the individuals by providing them money for the accomplishment of higher performance levels.
Unluckily, this goal is not always fulfilled by merit raise systems:
- It is not perceived by the individuals all the time that a direct connection is present amongst their performance and compensation.
- The criteria and objectives of attaining financial rewards are not defined adequately to be inspirational.
- The payment which is set for the accomplishment of much higher levels of performance may not be observed as being worthy of working harder to accomplish.
- Individuals may have the feeling that things are arranged in a way that is not fair to be achieved by them; for several reasons, they believe that irrespective of their attempts they make, their assessment will be done in the same manner. Unluckily, it may be true in many situations.
There will be a total disconnection between the performance and rewards in case the raises are not connected to performance reviews.
Systems are present for the compensation of every individual on the basis of some pre-determined schedule irrespective of the performances of the employees.
Plenty of politics and game playing in connection With the performance compensation system is included in the “across-the-board” raise approach; however, it may not be inspirational.
5. Performance Feedback is not Specific Enough regarding the Individual’s Performance: It is required by the individuals that they should have specific details regarding how they are observed and assessed.
It is necessary that performance appraisal comprises of very specific facts regarding the individual who is being assessed.