Performance appraisal letter format

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I. Contents of getting performance appraisal letter format

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A job offer letter must contain all the necessary terms and conditions to clarify all the aspects
related with selection for job. Here is a point wise description of every point which are important
and must be included while drafting terms and conditions for the job. Follow these points to draft
your own terms and conditions in the best of the manner possible:
1. Title
It must contain the job title on which the candidate has been selected.
2. Start Date
The next important thing in the letter is the start date of the job.
3. End Date ( In case of fixed contracts)
The offer letter must also contain the end date of the employment of the candidate.
4. Roles and Responsibilities
The job offer letter must contain all the necessary points concerning the roles and responsibility
of the job profile. There has to be a point-wise description of the main highlights of the job. This

will help the candidate deliver his services with the best of the understanding of what is expected
of him.
5. Reporting Relationships
There has to be a mention of the person to whom the new employee must report. Mention the
name of that person along with his designation to bring more clarity in the reporting relationship.
6. Probation Period
There has to be well defined probation period, if any. The purpose of this period is to train the
new appointment within a definite time to have complete understanding of his job so that he can
achieve satisfactory levels of performance. It should also contain the information about
extending this period in case the candidate fails to deliver expected performance levels along
with the information on interim reviews.
7. Appraisal
There has to be a mention of appraisal scheme related with the job profile. The purpose is to
encourage the candidate for his career development and personal development. It must contain
information on implementation of appraisal specific to the department. This will work as the
motivation for the employee to deliver better performance.
8. Salary
This is the most important segment of the job offer letter. It must contain the following
information:
Rate of Pay
It must contain the title of the post, the commencing rate of pay along with salary scale which is
mentioned in the letter of appointment. It must also be made clear that there will be no other
remuneration other than the payment.
Other Benefits
In case, there are other benefits like insurance, travel allowance, group incentives etc. they must
be mentioned too. Put all the benefits with clear detailing about each.
9. Superannuation

There has to be a mention of superannuation plan of the company which is designed to benefit its
employees after retirement. The offer letter must contain the deductions as per the pension plan.
A new eligible employee gets enrolled in the appropriate pension scheme automatically when he
joins the company.
10. Hours of Work
The next important thing to be mentioned is the hours of work. The letter must contain the daily
working hours along with mention of special circumstances like part-time or extra-time working
and the remuneration that will be paid for extra working.
11. Travel Requirements
Make a mention of travel requirements, if any. It must also include the frequency of travelling
concerning the job profile.
12. Public Holidays, Overtime etc.
Information of public holidays and compensation for overtime on regular days and on public
holidays must be mentioned in a simple and easy to understand language.
13. Holidays
This head must contain information on the number of paid leaves to which the candidate is
entitled. It must also mention the exception holidays like locally agreed department closure
holidays etc. along with the payment conditions on all such days. Special mention of conditions
regarding holidays during probation etc.
Below are some of the conditions on which the letter must focus to bring more clarity:
Additional Holidays for Long Service
Holiday Entitlement for Part-time Workers etc.
14. Termination Clause
There are two conditions under this head which must be kept in mind.
Termination of Appointments by Notice
Make sure you mention the period of notice which you are obliged to give the candidate before
terminating him. It must be given in writing. This period usually varies between weeks to a

month depending upon the organization. Do mention all the other conditions concerning the
termination.
Retirement
Do make a mention of the normal date of retirement in your company. Also mention the age of
retirement.
15. Restrictive Covenants
This is an important part of the terms and conditions. It is asking the candidate to maintain the
confidentiality of the intellectual property of the company. This is a non-disclosure agreement
which maintains the confidentiality of important information of the organization.
These are some of the important points which must be kept in mind while designing the terms
and conditions in the job offer letter of your company. Customize these points as per the need of
your company.
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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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