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1. Performance appraisal metrics
In this file, you can ref useful information about performance appraisal metrics such as
performance appraisal metrics methods, performance appraisal metrics tips, performance
appraisal metrics forms, performance appraisal metrics phrases … If you need more assistant for
performance appraisal metrics, please leave your comment at the end of file.
Other useful material for you:
• performanceappraisal123.com/1125-free-performance-review-phrases
• performanceappraisal123.com/free-28-performance-appraisal-forms
• performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal
I. Contents of getting performance appraisal metrics
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Evaluating employee performance can provide numerous benefits to your organization. In
addition to allowing you to distribute compensation incentives equitably, employee performance
evaluations can increase operational efficiency and workforce productivity while identifying
high-performing candidates for management positions. Effective employee performance review
systems require quantifiable metrics to accurately gauge each employee's performance. A list of
example metrics can help you to understand the types of performance that you can measure and
improve.
Productivity Metrics
Productivity is a basic component of performance for employees of any business. It refers to the
amount of work an employee accomplishes in a specific time frame, such as a single work day.
New hires generally show less productivity than more experienced workers, steadily increasing
the speed of their work over time.
Managers can measure employee productivity using different metrics in different situations.
Manufacturers can measure productivity based on the number of units individual employees
produce or work on each day. Sales managers often measure productivity as the number of sales
calls an employee makes per day.
Efficiency Metrics
Efficiency is a necessary counterpart to productivity. Efficiency is the result of maximizing
productivity with minimum effort or expense. Efficiency metrics relate to cutting costs and

2. reducing production time in operations, both of which contribute to bottom-line profits. The
number of mistakes made per day on an assembly line, the time it takes to complete each of a
series of repetitive tasks and accuracy for data-entry jobs are all examples of efficiency metrics.
Training Metrics
Employee training programs work improve employees' performance in some way. Using
quantifiable metrics to measure employees' success with training programs can shed light into
the programs' impact on employee performance as a whole. Training programs that include
written or hands-on tests -- for the sole purpose of monitoring training effectiveness -- can
provide readily available performance metrics such as test scores and pass/fail rates.
Goal-Setting
Collaborative performance review systems bring employees and their supervisors together to set
individual performance goals. This philosophy, also referred to as management by objectives,
creates personalized, measurable metrics designed to increase employee performance on an
individual level, incrementally increasing productivity and efficiency over time.
Mastering new job duties, completing specific training programs and being on time for work are
all examples of goals which managers and employees may set together.
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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”

3. 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. 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

5. 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 metrics (pdf download)
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