Parameters for performance appraisal
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I. Contents of getting parameters for performance appraisal
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Creating an effective employee performance review not only helps you get more productivity
from your workers, but helps you avoid potential legal problems as well. The attributes used to
evaluate and review an employee should be communicated to that worker in advance. This
allows the employee to meet all the tasks expected of him and helps reduce lawsuits or
arbitrations that arise from workers who disagree with your perception of their contracted duties.
Meets Deadlines
When an employee misses deadlines, it can affect the production of related staff members or
departments. It’s not always possible to meet deadlines, so a good employee will let her
superiors or co-workers know in advance. In a review, discuss how the employee could have
better handled a missed deadline.
Works Well With Others
An employee who gossips, creates cliques, insults, boasts or confronts other employees
decreases your workers’ morale. This type of behavior and how to address it should be part of
employee reviews. Don’t tolerate gossip about individual workers or the performance of a
specific department or the company in general.
Attendance

It’s important that you set parameters for dealing with tardiness, leaving early, taking long
lunches, or taking vacation or personal days on short notice. An employee who comes in late or
leaves early can negatively affect the attendance of other workers who see that worker getting a
perceived benefit they aren’t.
Communication Skills
Determine if the employee communicates well with superiors and subordinates. Some workers
don’t like confrontation or bad news and may wait to reveal a problem until it is too late to fix it.
Some employees communicate important information informally, such as in verbal exchanges in
the hallway, rather than putting requests or deadlines in writing.
Skill Set
To help your employees improve at their jobs, evaluate their skills and their ability to do their
tasks. You may find that an employee needs or will benefit from additional training, such as
seminars or night classes at a local college.
Performance
The bottom line of a performance review is to measure how well the employee met his goals. All
of the other attributes used to evaluate an employee most likely explain why the staff member
performed the way he did. Match the goals you gave the employee in his job description against
his results to determine his ultimate performance. This could include parameters such as meeting
revenue goals for a department, costs for project or division, sales goals, or production times.
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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.
III. Other topics related to Parameters for performance appraisal (pdf
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