Do not answer each part in more than 500 words

. Rahul and Priyanka are partners in a content writing company named as Writing4You. Rahul says its quite clear whether any particular employee of the company is doing their job properly or not, as they monitor, observe and give them feedback regularly. Being a small company Rahul feels a formal appraisal process is of no use because they (both Rahul & Priyanka) can keep in touch with every employee on a regular basis. Priyanka on the other hand, feels that sitting down and giving formal feedback will reinforce what employees are doing right and get them to modify things they may be doing wrong. Now, they want you, their management consultant to advise them on what to do.

a. What performance appraisal problems will Writing4You encounter if they continue on the course of not using formalized performance appraisals?

b. What guidelines would you recommend to Write4You partners for developing an effective appraisal system?