Performance appraisal procedure
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I. Contents of getting performance appraisal procedure
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Although much depends on the boss when it comes to performance appraisals, you can benefit
from the process by preparing for it and taking initiative when necessary.
1. Make the most of it
In some companies, not much thought is given to what the goals of performance appraisals really
are. Some bosses may have doubts over whether performance reviews really are fit for purpose
and employees wonder whether the boss is actually listening to them and giving the discussion
their full attention.
According to the Better Work Community survey carried out by the Finnish Institute of
Occupational Health, only 28 per cent of participants considered appraisals useful. Sometimes
appraisal discussions turn into meetings focused on setting goals and evaluating results, which is
not their original purpose.
Appraisals should be a tool for improving employees' wellbeing and development at work. At
their best, appraisals provide an important opportunity for communication and interaction at a
workplace.
2. Prepare for the meeting

When carried out properly, appraisals can offer a perfect occasion for discussing past projects
and planning ahead. You can make the most of the opportunity by preparing and being active at
the meeting.
Prior to the discussion, you should prepare a list of aspects of your work you think you have
performed well. You can also think of tasks that you have found challenging.
You can also make a wish list for your future: would you like to have more training, extra
support or a mentor? Also think of any feedback you would like to give to your boss.
3. Agree on follow-up
Without proper follow-up, there is a risk that nothing concrete comes out of the appraisal, which
is why you should make notes of what was agreed on at the meeting. In addition, you should
agree on when a follow-up chat will be held and what changes will take place as a result of the
appraisal.
4. Bear in mind that an appraisal is a two-way street
Much to do with performance appraisals rests on the boss's shoulders. The boss is responsible for
reserving an appropriate place and setting aside enough time for the meeting. They should also
make sure that a certain procedure is followed regarding appraisals in the work community.
Filling in a form can be part of the procedure, ensuring that the same topics are touched on with
all employees. However, it is important to bear in mind that a performance appraisal should not
be all about filling in a form or staring at a piece of paper but about having an open discussion.
5. Be active
Performance appraisals are meant to be discussions but for them to be beneficial, the employee
should be doing most of the talking. The employee should feel free to interrupt their boss when
necessary and bring up any topics they want to discuss. If you have any criticism about your
work, it is essential that you let your boss know about your feelings.
However, employees should not feel that they have to save up all their complaints or concerns
for the annual performance appraisal. There are no forbidden topics. You can bring up a pay
raise, even though it may be better to organise a separate discussion for that. Some organisations
have a rule stating that pay raise negotiations must be held separately from performance
appraisals.

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III. Performance appraisal methods
1.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. The “whole man” is compared with another “whole man”
in this method. In practice, it is very difficult to compare
individuals possessing various individual traits.
ii. This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. Rating Scale

Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages – Rater’s biases
3. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings
4. Critical Incidents Method
The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

5. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.
6. Behaviorally Anchored Rating Scales
statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.
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