Performance appraisal becomes a major headache for the managers during in the recession period as it determines not only the balance sheet of his own firm but the health and well-being of the whole economy, the whole society. If it is carried away with right sprit and enthusiasm he is endangering the position of the company and surging the chances of economic recession. If he is unrealistic in his appraisal it may imperil labor relations and it may lead to continual friction of political tensions of the time and the team, gradually he may find his enterprise is short of talent.

Now it is the real time for managers to develop the strategies aimed to boost and keep up the morale.

Be honest with the employees about the difficult times. Let them know how you are doing and how it is going to affect the financial picture. This will ease up the tolerance level, Increasing the tolerance level is one of the finest and perhaps the super most measure to get out of the stress level of the repercussion recession effect of the employees. Acknowledge when a job is well done.

There are no winners if the business goes down. Talking clearly and honestly with your employees also helps to reduce the rumors flying around the workplace. In the event of high self assessment condition depicted by the subordinates; managers should collect and instruct the normative informative information on average tasks assigned to them. As more employers move toward performance-based pay systems, pay–scale also largely depends of performance of the company. This will strengthen the position of the employer if the employer has a well-designed and fairly implemented performance appraisal system.

Managers can concentrate on the talent management tool and see that if the workforce is simply concentrating on the fundamentals. Performance ratings and appraisals, especially in a recession, can inform employers about whether their talent management objectives are being undermined because of a disconnect over expectations between workers and their managers.