Appraisal and performance management
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I. Contents of getting appraisal and performance management
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The performance appraisal meeting is, by far, the most dreaded part of the performance appraisal
process. In order to handle the performance appraisal like a rock star, you must be doing the right
things year round. The foundation for an effective performance appraisal meeting is built one
stone at a time, throughout the course of the performance period.
During performance planning, individual performance goals and measures are agreed upon. This
process creates a mutually acceptable yardstick for evaluating performance effectiveness.
Through the monitoring of performance and periodic performance update sessions, the employee
acquires a clear understanding of interim performance. Thus, the path has been paved for
reduced subjectivity and stress in the performance appraisal meeting.
Steps for Conducting a Successful Performance Appraisal Meeting
1. Prepare in advance.
Schedule time in your calendar to prepare for each performance appraisal. Gather all
performance notes and documentation to assist you in completing your evaluation of
performance. Be thorough and thoughtful in completing the evaluation of employee
performance. Review employee job responsibilities and expectations. Compare actual
performance to the performance standards and expectations. Questions to ask yourself:
 Am I looking at performance over the entire evaluation period?

 What performance standards were not met? List specific examples. What can be done to
improve performance?
 What factors may have affected performance? What factors may have been beyond the
employee's control?
 Were expectations reasonable? Attainable?
 What performance expectations were met? Exceeded? List specific examples.
 How have I formed my opinions about the employee's performance? Have I been fair and
objective?
Lastly, set a positive tone. Schedule the performance appraisal meeting with your employee in
advance, allowing enough time for he/she to prepare for the meeting. Whatever you do, do not
downplay the importance of the performance appraisal process. Check out Joan Henshaw's
thoughts on this topic in her article: Performance Appraisal - 5 Sure Fire Ways to Fail.
2. Provide a comfortable and professional environment.
The performance appraisal meeting is an important business discussion. As such, you should
plan to hold the meeting in a professional and comfortable environment. Ideally, provide a
conference room, versus your office or a restaurant. Why do managers believe that holding the
performance appraisal discussion in a restaurant is a good idea? If you want to take an employee
out to lunch go ahead and do it, just don’t conduct the performance appraisal meeting at lunch.
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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.
III. Other topics related to Appraisal and performance management (pdf
download)
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