This document provides guidance on writing effective performance appraisal reports. It recommends deciding on clear criteria for evaluation, using a numeric rating scale. The report should focus on the employee's current performance and include specific positive and constructive examples. Goals for the future should be discussed. Various performance appraisal methods are also outlined, including ranking, rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales.

1. Performance appraisal report
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I. Contents of getting performance appraisal report
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Employee reviews and appraisals are some of the hardest meetings to have, and writing the
report can create conflict or fear. Rather than being a manager who instills negative feelings in
his employees, you can write your appraisal in such a way that the employee feels prepared to
meet new challenges or fix current issues.
Instructions
Decide on criteria for reviewing. Any manager that goes into a review completely subjectively
will be respected less, and All Business notes that many employees already find written reviews
to be "artificial and unfair." A good idea is to think about the role of the employee under review,
create categories regarding that role (punctuality, work ethic, ability to meet deadlines, etc.) and
use a numeric scale to rate the employee's effectiveness. For instance, for each of the categories
above, make a numeric scale (from one to five) and circle which number best fits. For
punctuality, if the employee is always on time, he would receive a 5; mostly on time, a 4;
average punctuality a 3; less than desirable punctuality, a 2; and consistently late, a 1. Provide
employees with their own copies of the report.
Prepare a report based on current conditions--in other words, how the employee is currently
performing. Rehashing the first few weeks of the employee's work history--often the most
difficult and awkward--will make the employee feel despondent and unmotivated. Compliment
the ways the employee is contributing, note where she can perform better, and recommend ways
that the employee can contribute further in the future. For example, you might say, "You have
really grown in your Excel skills, and I'd like to add on some work with Visio now."

2. Evaluate based on your own observations, not hearsay. Office gossip is not an accurate indicator
of an employee's performance. For instance, saying, "I hear that many of the employees see you
with personal email sites open," would cause the employee to feel upset and vulnerable. Only
bring up a point if you have witnessed it yourself.
Use specific examples for your employee review. In any observation--whether positive or
negative--be sure to have an example to back it up. For instance, if you want the employee to
note his punctuality, say, "I appreciate the days you make it into the office by 8:30. Perhaps if
you are going to be later, you could give a phone call." Employees will not grow unless they can
understand what they did right or wrong in a specific scenario.
Encourage the employee under review to indicate her goals for the next year. This type of
positive reinforcement makes the manager-worker relationship feel more reciprocal and
motivates the employee to achieve more than she already has. Ask, "What do you feel you are
capable of adding on to your duties?" or recommend a new task yourself, "I think that you are
ready to move into increased client invoicing responsibility."
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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

3. 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
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

4. 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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