Model Employee Appraisal System with Artificial Intelligence Capabilities

Model Employee Appraisal System with Artificial Intelligence Capabilities

Shashidharan Shanmugam (University of Liverpool, Liverpool, UK) and Lalit Garg (Department of Computer Information Systems, University of Malta, Msida, Malta)
Copyright: © 2015 |Pages: 11
DOI: 10.4018/JCIT.2015070104

Abstract

An employee appraisal system is one of the most critical components of every organization and its effective management leads to higher productivity among the employees. In practice, there are many possible errors or biases in the performance appraisal process. These errors affect the objectivity of the appraisal to a large extent. The most common errors in appraisal include the Halo Effect and Horn Effect, leniency Error (Loose rater), the Error of Strictness (Tight rater), the Central Tendency Error, the Recency Effect, the Contrast Error and the Similarity (similar-to-me) Effect. The aim of this research project is to develop an intelligent IT system to address the issues of existing employee appraisal system. The system would be seamless and reduce human intervention to minimal. The system can be realized as a dashboard. Outcome of this research can be applied in today's businesses. The design of the system mentioned here is a process to ensure that the rater bias is limited. This type of system would be more beneficial for larger organizations with thousands of employees. A limitation could be that this type of application can be overhead for small companies.
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2. Appraisal Concept And System

2.1. Genesis and Objective of Appraisal System

An appraisal process is a formal way of judging someone based on relevant parameters. It is a way to judge an employee on their performance, which benefits the organization. If organization changes its conditions and thus performance parameters will change and employees have to adapt to it as required. Appraisal systems are basic set of rules to which an employee has to adhere and such rules are set to help organization grow and in turn reward the employee.

Performance of a company depends on performance of employees. But if the business strategy is incorrect or business environment changes due to political changes or reasons which company cannot control then it affects all the employees. The job of a performance appraisal system is to address this before the business goes out of control. It is very important to identify the best and the worst performers in an organization. Managers play crucial role in this exercise. It is the responsibility of the manager to provide a fair assessment and give a rating that deserved by the employee. Employee aversion can occur if they receive an unfair rating. Human assessments are subjected to error and biases. Managers are also uncomfortable to show superiority and to judge worth of a fellow employee (McGregor, 1957). An appraisal system is used to assess employees of an organization and categorize them based on their performance. However, there is a probability of error in judgment and certain bias rendered towards an employee. We can address appraisal system issues with the use of technology and try to minimize mistakes that manager can commit intentionally or unintentionally.

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