The important goal of this article is to know the limitation of the performance appraisal. Traditional performance appraisal system has following some limitation like as Halo effect, Constant error, Miscellaneous bias, General tendency. There is always the possibility that the subordinate may set his targets up low or rate himself too high. Over emphasize on measurable factors may also encourage the covering up of poor performance, actual falsification of date or the setting low goals.
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