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Performance appraisal phrase book
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I. Contents of getting performance appraisal phrase book
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Most supervisors are tasked with the annual event of completing a performance appraisal for
each of their employees. Not only must supervisors rate an employee usually in multiple
competencies, but more importantly, they must communicate this rating to their employee.
Perhaps the two most important words that help communicate where an employee stands
throughout the year and during the appraisal process are, “For example.”
A recent survey revealed that 72 percent of companies that held performance appraisals were not
satisfied with the process. While there are many reasons for a company to be unsatisfied with its
process, there usually is only one reason that employees are generally unsatisfied: the
supervisor’s rating is not as high as the employee believes it should be.
As a supervisor, it is important to paint a picture for an employee that he or she can relate to and
that will clearly reflect a particular attitude or behavior. When you review the rating for an
employee’s competency level, be sure to ask yourself the following questions:
 Are you able to support that decision with two to three specific examples?
 Are you able to adjust those examples to convey how achieving a point or two higher
rating would have been exhibited?

2.
Often supervisors don’t spend as much time and effort in communicating the results of a
performance appraisal review with an employee as they do in preparing it. However,
communication is key to a successful relationship with the employee.
Communication does not begin at the end of the review process, but rather at the beginning.
Clear expectations should be set from the first day of the supervisor/employee relationship.
Expectations should include not only what the standards for the position are and the level of
performance required, but should also include how to reach beyond the standard.
Communicating these expectations on an on-going basis provides an opportunity to:
 Clarify
 Redirect
 Collaborate
Adhere to these actions throughout the year, and you will ultimately shape the outcome of the
performance appraisal review.
While every performance appraisal form may be different and rating scales may use a variety of
terms to distinguish average performers from superior performers, eventually the words will
have little meaning to employees because they will know which bucket they fall into. However,
including the phrase “for example” in your supporting comments provides more depth to the
employee’s understanding of their current status and how to achieve a higher standing.
The phrase “for example” emphasizes to the employee that your explanation is a well-thought-
out remark, concern or rating. It reinforces to the employee that this is not simply an arbitrary
number that has been selected or a subjective manager’s opinion. As a supervisor, these words
provide a way for you to validate and structure your assessment and put your conclusions into
action.
With the use of these two simple words, employees will have a clear understanding of the rating
that you have assigned to the competency, as well as how to improve, which instills in the
employee that the rating is fair, objective and constructive.
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III. Performance appraisal methods

3.
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

4.
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

5.
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 phrase book (pdf download)
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