Criteria for performance appraisal
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I. Contents of getting criteria for performance appraisal
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Performance appraisals are a fundamental part of performance management. An appraisal is a
formal review process that is designed to evaluate and encourage the daily practice of
performance management. It also serves to provide a foundation that supports pay adjustments,
such as merit increases, promotions and career advancement opportunities.
Setting And Reaching Goals
According to the January 2010 issue of "Production Planning and Control," Veronica Martinez,
Andrey Pavlov and Mike Bourne attest that appraisals begin with the supervisor. The supervisor
will set goals and standards for an employee based on their position. Once those goals and
standards are set, it is the supervisor's responsibility to communicate the performance
expectations to the employee. The employee will normally sign that they have received, and
agree to, the goals and standards assigned to them. Now that the employee knows what is
expected of him, the supervisor and employee must work collaboratively to accomplish the
goals. Supervisors must assist their staff in achieving the expectations by providing ongoing
guidance and the resources necessary for the employee to carry out his assigned duties. In the
end, the supervisor will perform the appraisal, which is the evaluation of the results.
Completing the Paperwork
Appraisals are documented on special forms that the supervisor fills out. To begin the
appraisal process, the supervisor will complete the appraisal form for the employee they are
evaluating. The form requires the supervisor to make judgments and critiques about the

employee's performance for the given review period. At this time, the supervisor must review
and assess the employee's accomplishments, achievements, deficiencies and areas of
improvement. Appraisal review forms are standardized or specific to particular departments, and
contain lists of competencies that the supervisor is required to score the employee on.
Remaining Neutral
Performance appraisals must be conducted by supervisors from an unbiased, neutral perspective.
According to the July 2007 issue of "The International Journal of Human Resource
Management," supervisors must disregard personal agendas, preferences and beliefs to make a
fair, non-emotional assessment of the employee. Appraisals that are based on a supervisor's
personal agenda can be considered discriminatory.
Competency Criteria
Appraisals provide a comprehensive overview of the employee. Competency criteria should
encompass all of the employee's work-related areas including, but not limited to, business ethics,
job knowledge, customer service and communication skills, professional development, work
quality, time management skills, organizational skills, level of initiative, level of motivation and
teamwork abilities. For each of the areas, the supervisor will score the employee on a rating scale
that is used to measure whether the employee met his goals. The scores for all of the
competencies are averaged to come up with an overall appraisal score.
Conducting Review
A formal meeting between the supervisor and the employee will take place once the supervisor
has completed his own assessment of the employee. At this time, employees have the chance to
score themselves, discuss scores with their supervisor and even appeal the scores their
supervisors gave them if there is unjust rationale for low ratings.
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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.
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
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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