The document discusses the goals of performance appraisals, which include setting specific, measurable, achievable, relevant and time-based goals for employees to improve performance in areas identified by reviews. Various performance appraisal methods are described, like ranking, rating scales, checklists, and critical incidents, each with advantages and disadvantages. Additional resources on topics related to performance appraisals goals are provided.
1. Goals of performance appraisal
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I. Contents of getting goals of performance appraisal
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When it's time to perform your regular employee reviews, it's helpful to write down employee
goals for each of your workers. This list of goals will give your employees something specific to
shoot for after leaving the appraisal meeting instead of leaving them confused about what they
should do going forward. In addition, as Valerie Ventre-Hutton, employee relations manager of
UC Berkeley, says "Part of the reason to have these conversations is to determine if the job
description is still accurate or if it needs to be updated."
Step 1
Review the employee's filled appraisal form first to determine areas where he needs
improvement. For instance, if he's consistently late or his sales figures are slumping, this is an
issue that you need to address and improve upon.
Step 2
Seek feedback from the employee's customers and team members to identify other information to
help you develop your specific list of goals.
Step 3
Use the SMART approach to writing goals for your employees. Set goals that are specific,
measurable, achievable (realistic), relevant and time-based.
Step 4
2. Write down a list of short-term goals that you want the employee to achieve within the next few
months as well as long-term goals for the employee in a separate list. Make sure that each goal
you set meets the SMART guidelines as described in the previous step.
Step 5
Add a timeline next to each item listed for the employee to achieve that goal (the "T" element of
the SMART approach). For instance, "Achieve 95 percent ontime arrival by the end of August"
or "Increase sales by 20 percent within three months."
Step 6
Discuss the performance appraisal form with your employee in detail. Ask questions and ask the
employee to ask his own questions in relation to the feedback. Write down additional goals
identified during your discussion in the appropriate section.
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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.
3. 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
4. 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.