What is one limitation of performance appraisal mentioned in the text?

One key limitation of performance appraisal is that it can be time consuming. The process often involves multiple steps, including setting performance criteria, collecting data, conducting evaluations, and holding feedback meetings. This can require significant time from both managers and employees, which may hinder productivity and take resources away from other important tasks. The time investment needed for thorough appraisals can sometimes lead to rushed evaluations or inadequate feedback, ultimately affecting the effectiveness of the performance management system. The other options tend to highlight positive aspects of performance appraisals rather than limitations, focusing on benefits like cost-effectiveness or high reliability, which do not address the challenges associated with the time required to conduct thorough appraisals.