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Performance management appraisal system
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I. Contents of getting performance management appraisal system
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How can you tell if your employees are doing their jobs well enough to reach the goals of your
organization? A performance appraisal is an objective, standardized approach to evaluating an
employee's work, often used in making decisions about that employee. However, they are not
just specific to individual employees. Performance appraisals can be used to plan careers as well
as evaluate an entire organization's progress towards its goals.
COHRE will work with your organization to either evaluate your current performance appraisal
system or help you create a new one that will better capture the nuances of more unique jobs that
may have been overlooked in another system. In addition, we can evaluate processes and
procedures that have an organization-wide impact and make suggestions as to how you can
improve your performance as a whole entity.
COHRE's approach for performance appraisals is to first evaluate the current performance
appraisal system's effectiveness, regardless of whether this is the final goal or a step on the way
to a new approach. Once the system has been evaluated, any recommendations for improvement
will be given. Then, if a new system is being designed, research will be done on which type of
performance appraisal system would be most effective for your organization.
Based on this research, a new performance appraisal system will be developed. When it has been
completed, the performance appraisal approach will come full circle with the evaluation of the

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new system. Details on some of the potential projects associated with performance appraisal are
listed below.
 Developing a Performance Appraisal System
 Evaluating Existing Performance Appraisal Systems
 Organizational Performance Measurement
Being able to measure how well your employees are performing is an important part of many
other Human Resource-related processes. Without an accurate measure, excellent employees
cannot be rewarded appropriately and poor employees cannot be disciplined accordingly. A
performance appraisal system that fits your organization and your employees will enable you to
make correct decisions with a positive, company-wide 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.
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.

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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

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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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III. Other topics related to Performance management appraisal system (pdf
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