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Summary of Performance management and appraisal

To see whether Employees are working in a firm according to the set standards, every
company held annual performance appraisal. performance appraisal means evaluating an
employee’s current or past performance relative to his or her performance standards.
Managers appraise their subordinates’ performance to obtain input on which promotion and
salary raise decisions can be made, to develop plans for correcting performance deficiencies,
and for career-planning purposes. Supervisory ratings are still at the heart of most appraisal
processes. Human Resource department act as an adviser to tell about which appraisal tool
to use, effectiveness of the tool and to enhance the skills of the managers. Appraising can be
done by supervisors, peers, rating committee, suboridinates,360-degree feedback etc.
The appraisal is generally conducted using one or more popular appraisal methods or tools.
These include graphic rating scales, alternation ranking, paired comparison, forced
distribution, critical incidents, behaviourally anchored rating scales, MBO, computerized
performance appraisals, and electronic performance monitoring.In graphic rating scales,there
is a scale which lists a job dimension/trait and a performance values (from “below
expectations” to “role model” or “unsatisfactory” to “outstanding”) for each trait.According
to the performance of the employees ,supervisor rates him/her and total the ratings.
Alternation ranking method is the ranking of employees from best to worst on a particular
trait, choosing highest, then lowest, until all are ranked. Paired comparison method is the
ranking of employees by making a chart of all possible pairs of the employees for each trait
and indicating which is the better employee of the pair. Forced distribution method it is
similar to grading on a curve; predetermined percentages of ratees are placed in various
performance categories. Critical incident method is keeping a record of uncommonly good or
undesirable examples of an employee’s work-related behaviour and reviewing it with the
employee at predetermined times. Behaviorally anchored rating scale (BARS) An appraisal
method that aims at combining the benefits of narrative critical incidents and quantified
ratings by anchoring a quantified scale with specific narrative examples of good and poor
performance. Electronic performance monitoring (EPM) supervisors electronically monitor
the amount of computerized data an employee is processing per day, and thereby his or her
The appraisal process can be improved by eliminating chronic problems that often undermine
appraisals and graphic rating scales in particular. These problems include unclear standards
(An appraisal that is too open to interpretation i.e. all supervisors have a different definition
of good and excellent performance, halo effect(supervisor’s rating of a subordinate on one
trait biases the rating of that person on other traits), central tendency(it means rating all
employees average), leniency or strictness, Recency (letting what the employee has done
recently blind you to what his or her performance has been over the year) and bias(The
tendency to allow individual differences such as age, race, and sex to affect the appraisal
ratings employees receive).
An appraisal typically culminates in an appraisal interview. Adequate preparation (including
giving the subordinate notice, reviewing his or her job description and past performance,
choosing the right place for the interview, and leaving enough time for it) is essential.
The manager can use the appraisal interview to improve the employees’ level of engagement.
For example, show the employee how his or her efforts contribute to the team’s and the
company’s success; use the interview to emphasize the meaningfulness to the company of
what the employee is doing; and emphasize support rather than threats.
Performance management is the continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning their performance with the
organization’s goals. It means continuous interactions and feedback to ensure continuous
improvement in the employee’s and team’s capacity and performance. Most importantly, it
requires remembering that your employee’s performance usually reflects more than just
whether he or she is “motivated.”