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Hr performance appraisal
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I. Contents of getting hr performance appraisal
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Performance appraisal doesn't benefit only employees. Organizations that use the results
of performance appraisal to identify areas of strength and opportunity can benefit as well.
Performance appraisal can provide an indication of areas of training need as well as direction for
leadership development, performance improvement and succession planning.
Identifying Areas of Strength
The results of performance appraisal can be assessed to identify areas of strong performance
across all employees, by department or by demographics. Standardized performance assessments
allow companies to aggregate, calculate and analyze results to show where performance is
strong. These areas of strength then can serve as benchmarks and opportunities for sharing of
best practices for other areas of the organization.
Identifying Training Needs
Evaluating the results of performance appraisals can provide managers, human resources
departments and organizations with an indication of where additional training and development
may be necessary, says Lin Grensing-Pophal, author of "Human Resource Essentials." For
instance, results may indicate that employees collectively are scoring low on items related to use
of technology or customer service. These may become target areas for the creation and
implementation of training programs designed to boost employee competence and performance.
Results also may be assessed at the individual, department and division levels.
Leadership Development and Succession Planning

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Performance appraisal can provide an indication of employees with leadership potential or
leadership development needs. In both cases, the manager and HR department then can develop
programs and interventions to either offer employees an opportunity to exercise their leadership
competencies or build skills. Performance appraisal can serve as an input to succession planning
by identifying employees with specific competencies that the organization knows it will need in
the future due to turnover and retirement; it can highlight external factors affecting the need for
new skills.
To maximize the use of performance appraisals in this manner, it is important that the appraisals
be standardized and that appraisal results be reviewed, assessed and analyzed to identify
competencies and development needs across all departments.
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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.

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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

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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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