In this file, you can ref useful information about performance appraisal human resource management such as performance appraisal human resource management methods, performance appraisal human resource management tips

1. Performance appraisal human resource management
In this file, you can ref useful information about performance appraisal human resource
management such as performance appraisal human resource management methods, performance
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I. Contents of getting performance appraisal human resource management
==================
We know the perils of performance appraisal almost instinctively. Parodies of the process are
common – think UK comedy series, The Office. Now serious questions are being asked about its
real value, as high-profile companies review their practices.
Adobe and Microsoft are well-known corporate examples of organisations that have overhauled
their approach to performance management, eschewing backward-looking, form-filling processes
in favour of real-time feedback.
A recent article in the journal Human Performance assessing variance of job performance ratings
lays bare the subjective nature of performance evaluations and in particular points to the
idiosyncracies of supervisors as the reason why job performance ratings vary widely.
This is particularly concerning when performance ratings are used to rank employees and decide
on pay rises. The article explains that these results are not surprising given the ambiguity and
complexity that characterises many performance-rating processes. It suggests that asking a
supervisor to store, recall, and appraise behaviours of numerous workers over the course of a
long period (typically between six months and one year), is unrealistic.
Other challenges with supervisor/line management involvement in performance evaluation are
easy to identify and include efforts to juggle competing work priorities, and the absence of skills

2. and knowledge. Supervisors often lack motivation and commitment to undertake people
management activities, exacerbating an already fraught process.
These challenges give pause for thought. Add to them the hard costs associated with the
performance management processes, as highlighted in this month’s Harvard Business Review
and serious questions start to emerge about the business case for traditional performance
management approaches.
The HBR article considers the case of Deloitte, in which it is estimated that 2 million hours were
spent on filling in forms, holding meetings and collating data for ratings. While that figure
reflects the scale of Deloitte’s global operations, it does bring into sharp relief the opportunity
cost of performance management procedures. It also begs for a cost-benefit analysis to determine
how much a focus on past performance contributes to future outcomes.
So do we need to re-evaluate the way we evaluate? Despite mixed success, the growing interest
in various versions of “results only work environments” (ROWEs) demonstrates an increasing
focus on outcomes over processes.
This seems to make intuitive sense in the context of our changing workforce, with around 25%
of the Australian workforce in casual work and a significant proportion in contract or project-
based work (or classified as independent contractors).
With companies needing to be more agile, the key to success is now focused on not just having
the right strategy, but aligning people to that strategy (see Dave Ulrich and Wayne Brockbank’s
book The HR Value Proposition). We need to strip out unnecessary complexity and bureaucracy
of performance evaluation.
The lessons from Adobe and Deloitte point to a need to disrupt the process and consider new and
innovative ways to evaluate performance. Although there is no silver bullet to the complexities
faced, these examples suggest that developing a culture that is rich on feedback and providing
regular and ongoing commentary, would be a good start.
Organisations would also be well placed to remember that most employees do not purposefully
set out to be poor performers. Establishing why employees are not performing or why they are
not achieving specified outcomes is central to performance evaluation. Furthermore,
organisations should seek to eliminate, or at least be mindful of, mechanisms that may promote
perverse behaviour by encouraging employees to focus on their own goals at the expense of the
organisation - such as pay for performance plans.

3. This is something to be kept in mind, even with seemingly progressive approaches like ROWE.
Further, a pure emphasis on outcomes could encourage unethical behaviours, distort risk
preferences, corrode organisational culture and reduce intrinsic motivation.
While the global financial crisis graphically illustrated the importance of good governance,
compliance with internal or external governance mechanisms should not be confused with
effectively measuring performance for better organisational outcomes. Such confusion presents
another danger for organisations. Namely, the ossification of bureaucratic processes that serve no
positive organisational end but instead run the risk of alienating that most elusive of HR
commodities – talent.
==================
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.

4. 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

5. 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.

6. III. Other topics related to Performance appraisal human resource
management (pdf download)
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