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Review of literatureon performance appraisal
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I. Contents of getting review of literature on performance appraisal
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We found that when officers felt that in their performance review they had been treated
respectfully by their superiors, they tended to behave more ethically.
In co-operation with the German Police University (the single training centre within the German
police where senior police officers from all states as well as from the federal police forces
receive training to qualify them for promotion to higher ranks), we drew the respondents for our
study from a representative sample of two German police forces.
Our survey found that police officers evaluated their performance appraisals in terms of how fair
it seemed to them, and that their perceptions had strong implications for their subsequent
behaviour, as observed by a colleague of the respondent’s choosing. Although a performance
appraisal is at most 30 to 60 minutes of a full working year, it has a very strong symbolic effect
on the employee.
In line with the existing literature, we discovered that the extent to which employees perceived
their performance appraisal as fair correlated with the degree of support they felt they received
from their supervisor, and to a lesser extent, from their organisation. If employees felt supported
by their supervisor and their organisation, they tended to behave more ethically at work. If the
officers felt they had been treated shabbily, they tended to cut more corners afterwards –
showing up late, taking over-long breaks – and continued to hold that grudge for the entire year.

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More surprisingly, we discovered that the performance of the messenger tended to matter more
than the message. Many officers who received negative reviews said what bothered them most
was not the review but how the news was delivered. The police officers told us, ‘I don’t mind, I
understand… but just be honest and open about it. Don’t try to treat me like a little child.’ But
even positive reviews delivered badly could also have a negative effect: officers who had
received positive reviews that they felt were disrespectful were also less inclined toward ethical
behaviour.
The results suggest to us that employees see their own performance appraisal as a key test of the
trustworthiness of their superior and of the organisation toward themselves. Fair or unfair
behaviour by managers in a performance appraisal is likely to affect their perception of the
degree of supportiveness they receive from their supervisor and translate ultimately into ethical
or unethical behaviour by the employee.
To me, this study shows that you don’t always have to do something big to make a difference to
a culture. Sometimes even a seemingly minor act, such as just being respectful to a co-worker
and demonstrating that you realise how important a particular moment is to that person, can have
quite an impact.
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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.

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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

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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.

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