This document provides information about performance appraisal and management. It discusses several important aspects of conducting performance appraisals including identifying employee strengths and weaknesses, reviewing goals achieved, and outlining areas for potential improvement. The document also describes several common methods for conducting performance appraisals such as ranking, rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales. Finally, it lists additional related topics around performance appraisal processes, forms, examples, and tools.
1. Performance appraisal performance management
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I. Contents of getting performance appraisal performance management
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An employee performance review can help gauge the progress an employee has made and his
potential. By holding regular performance reviews, small business owners can develop and lead
their employees in doing their jobs more effectively. Performance reviews can also help
highlight potential issues that need to be solved.
Strengths
An employee performance appraisal should include the strengths that the employee has displayed
while doing his job. For example, if Tony in accounting has a particular talent for doing payroll
correctly, even with added complications of calculating garnishments, this should be noted on his
performance review. Anything that makes an employee stand out and shows how well he
performs his job, especially when faced with adversity, should be included. If no particular
strengths can be found, this should be noted, and a plan to improve should be given to the
employee.
Weaknesses
Weaknesses also need to be covered in a performance appraisal. These weaknesses should be
covered fairly and simply. For example, if Tony is not strong when it comes to delivering weekly
accounting reports, this needs to be included in his performance appraisal. Once the weaknesses
have been discovered, include a plan to help an employee develop strength in these areas.
Goals Achieved
2. If the employee has been with the company for many years, he should have gone through several
appraisals and been given goals to improve his performance. The goals they have achieved since
the last performance appraisal should be noted in his new appraisal. This gives employees and
management an idea of how an employee is progressing over time. If the employee is new, the
basic goals he was given when he was hired need to be examined to see if they have been
achieved.
Potential for Improvement
The last section of an employee performance appraisal should include a section on how an
employee can improve. The employee will get a copy of this appraisal. Illustrate what needs
improvement while keeping the tone fair, balanced and upbeat. This section can mention goals
you would like to employee to achieve.
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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
3. 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
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.
