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Performance appraisal tips for employee
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I. Contents of getting performance appraisal tips for employee
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You’ve invested your time, your money, and all your energy into building your company. But no
company can function for very long without a team of productive employees supporting it. It’s
important not only that your employees feel appreciated, but also that they feel they’re
progressing steadily in their careers.
One of the best ways to ensure this level of job satisfaction is by holding employee performance
reviews at least once a year. However, as essential as these reviews can be for the growth of the
company and the well-being of its employees, many small business owners remain
uncomfortable with the entire process.
To make your performance reviews as productive and as painless as possible, follow these 10
tried-and-true suggestions:
 Be prepared. First of all, make sure you are fully prepared before sitting down with the
employee. Decide both what you’re going to say and how you’re going to say it.
 Lead with the positive. It’s important to reaffirm the employee’s strengths at the
beginning of the review. Since job security is the number one concern of most people, the
performance review is a good time to tell an employee how much you value their
contributions to your business.

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 Don’t be confrontational. It’s also important not to criticize the employee in general
terms. The goal is to evaluate job performance and not the person. A performance review
that turns into a gripe session misses the opportunity to raise employee morale.
 Keep it real. Human resource professionals recommend that you avoid detailed reviews
that are too complicated and mechanistic, which can leave the employee feeling like a
drone rather than a human being.
 Be consistent. Make sure to handle performance reviews in a consistent manner. Top
performers should hear affirmations from you regarding their exemplary efforts; weak
performers need to hear that their performance requires improvement. A simple approach
to review criteria is to evaluate work based on quantity and quality relative to the job
requirements. Secondary considerations might be employee attitude, willingness to help
other personnel with their work when appropriate, and the ability to get along with others.
 Make it a two-way conversation. An effective performance review requires an interactive
discussion with an open agenda. Try to formulate questions that seek the employee’s
ideas and input. Remember, this will help the employee feel you value his or her
opinions. The review should also be a forum for employees to voice their concerns.
 Address what’s important to the employee. Since job satisfaction is the most important
factor affecting an employee’s attitude (and therefore his or her level of performance and
value to your company), an effective review should delve into areas that include issues
most important to that employee.
 Discuss work/life balance. The performance review is a good opportunity to show your
concern for the employee’s work/life balance, and to jointly discuss solutions to improve
that balance. It’s also a good time to create a plan for the employee’s career advancement
and discuss what future opportunities might exist for him or her.
 Be a good listener. Remember to be an active listener and to pick up on your employee’s
verbal and nonverbal cues.
 Review regularly. Reviews should be done proactively with the purpose of improving
employee morale and productivity. When you conduct them on a regular basis, you avoid
reviews prompted solely by the need to document an employee’s poor performance. This
in turn can imply that the information is being collected as evidence to avoid litigation,
should the employee ever be terminated.
The sign of a successful performance review is an employee who leaves the meeting feeling
motivated and excited about his or her job. If the employee’s job satisfaction needs are unmet,
it’s less likely they will be motivated to focus on your goals for the company. But if an employee
feels acknowledged, appreciated, and fairly rewarded for past efforts, he or she will indeed
become a valuable asset to the future success of your company.
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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

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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

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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.
III. Other topics related to Performance appraisal tips for employee (pdf
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