Method of performance appraisal

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I. Contents of getting method of performance appraisal

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Performance appraisal deals with how organizations evaluate and measures its employees
achievements and behaviors. It is an employee review by his manager where his work
performance is evaluated and strengths and weaknesses are identified so that the employee
knows his improvement areas. Performance appraisal is the right time to set new goals and
objectives for the employees.
Before we look into the types of Performance appraisal system, let us check out the purpose
of it.
So what is the purpose of a performance appraisal system?
Performance appraisal system allows the management categorize employees into performers and
non-performers. It is primarily done to estimate the employees worth.
Going back to the types, there are different variations of performance appraisal systems. Let us
list them down and see a bit of what they are:
1. Behavioral checklist: Behavioral checklist has a list of criteria that an employee should
workup to be a diligent worker. The behaviors differ according to the type of job been
assessed. This method is considered favorable as the evaluation is done on the basis of
individual employee performance without comparisons.
2. 360 degree appraisal: 360 degree appraisal involves feedback of the manager,
supervisor, team members and any direct reports. In this method of appraisal, employees
complete profile has to be collected and assessed. In addition to evaluating the employees

work performance and technical skill set, an appraiser collects an in-depth feedback of
the employee.
3. Management by objective: This is an objective type of evaluation which falls under
modern approach of performance appraisal. In MBO method of performance appraisal,
manager and the employee agree upon specific and obtainable goals with a set deadline.
With this method, the appraiser can define success and failure easily.
4. Psychological appraisals: This appraisal method evaluates the employees intellect,
emotional stability, analytical skills and other psychological traits. This method makes it
easy for the manager in placing the employees in appropriate teams.
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III. Performance appraisal methods

1. 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.

2. 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.

3. 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 Raters biases

4. 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

5.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
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
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.
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.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. 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.

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