Many managers look upon performance appraisals as one of the most uncomfortable task that they are called upon to do. In fact, appraising employee performance is probably a manager's least favourite and most difficult task. Successful managers learn early in their careers that performance appraisal does not need to be considered as a disciplinary tool . They recognise that performance appraisals are a lot like organic fertilizer: properly scheduled and handled, they will definitely improve productivity. This work highlights upon the concept of performance rating errors . The study has been done on Indian banks. It takes an all-embracing view of the factors which lead to errors and how they can be minimised. This is entirely consistent with the HRM philosophy of treating employees as assets and investing in their management and development in order to enhance their value.
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