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Performance appraisal best practices
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I. Contents of getting performance appraisal best practices
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Engagement is a personal equation, and managers must play a role in helping each employee
solve it. Your best managers already understand this. They’re not waiting for survey data to
shape what they do. They don’t make engagement a once-a-year priority, distinct from what they
do the rest of the time. They always manage their teams with an eye toward results and
engagement.
How do they do it? Dialogue. Sounds pretty simple: if you manage employees, you need to talk
to them. Yet manager-employee conversations are more of a myth than a best practice in a
majority of organizations. Many managers sheepishly acknowledge that they should have more
regular sit-downs with their individual team members, but a variety of excuses (e.g., "Not
enough time," "Mired in my own work," "Never get around to it") stand in the way. That is too
bad, because dialogue is at the heart of high engagement and sustainable performance.
So rather than investing your time and resources in driving manager compliance with check-the-
box corporate-driven online engagement action plans, get your managers talking to their people.
The Performance Appraisal
This discussion should be on every manager’s list already and is likely to be the only
conversation that is happening with any consistency or regularity. Unfortunately, it is often seen

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as an HR-driven task that fills many managers and employees with dread—and does little to
actually fuel high performance.
The performance appraisal is primarily about what employees need to deliver to drive the
organization’s success. It’s an opportunity to review results, provide feedback on how results
were achieved (if your performance management systems includes competencies or
organizational values), and confirm expectations. It’s also the time to talk about any
development needed to achieve even greater success in current roles and upcoming projects.
We have seen managers tackle these conversations with a variety of styles—from meek conflict-
avoidance to the back-of-the-head-with-a-two-by-four. But one thing routinely lacking from
performance appraisals is this: how do we build the "success connection"—namely, how do we
figure out how best to put your passion and talents to work for the greatest contribution to the
organization?
Although performance appraisals appropriately focus on maximum contribution the
organization’s side of the engagement model), the greatest performance improvement results
when an individual’s personal motivators, interests, and talents are taken into account.
Yet rarely do performance appraisals address those elements. When they do, they come in at the
end of the conversation with a perfunctory question such as, "Where do you want to grow next
year?"
Some appraisals run out of time before that topic comes up, and let’s be honest: during the
performance appraisal your employees aren’t thinking about their satisfaction or development.
They’re waiting to hear answers: What are my ratings or rankings? How much, if anything, will
my merit increase be? Have I earned my full bonus?
So rather than trying to reengineer your performance appraisal discussion to tap into personal
engagement drivers of employees, we suggest that you make sure
 Your appraisal process drives clarity of priorities and expectations and provides fair and
useful performance feedback.
 Your managers understand that performance feedback should be immediate and year-
round (even though they’re being monitored just once a year).
 You hold your managers accountable for addressing performance problems with clear
action steps like performance improvement plans.
 Encourage and train your managers to talk with their teams the rest of the year—in career
coaching conversations, onboarding discussions, and engagement reviews.

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The Career Coaching Conversation
The career coaching conversation is more about what employees want. Although it is heavily
weighted toward the individual’s side of the engagement model (maximum satisfaction), career
development must happen in the context of the business: your employees’ personal aspirations
need to be fulfilled while simultaneously addressing organizational needs. You don’t really want
your employees pursuing their career agendas and building their skill sets for future
employability on your payroll without regard to your needs, do you? Career coaching is the
perfect opportunity to align your interests with their passion and aspirations.
Many of the managers we’ve talked to fear career conversations more than performance
appraisals. Worries abound: What is the employee looking for? What jobs are actually available?
What if I don’t have the answers? How will the team fare if this person takes another job down
the hall? The result: conversations don’t happen—even in those organizations that boast the
common mid-year development/career conversation in their performance management process.
Yet career development is a top reason your employees will leave. For the purposes of this
discussion, let’s consider the conversations that need to take place to help equip employees for a
promising, satisfying future with your organization.
Career Coaching Tips
The goal of managers in career discussions is to support not control. That means it is more
important to ask good questions than have all the answers. It’s about helping employees clarify
what they want, build on strengths, address career liabilities, identify development opportunities,
network within the organization, and take control of their career success.
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III. Performance appraisal methods

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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 best practices (pdf
download)
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