Performance appraisal and motivation
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I. Contents of getting performance appraisal and motivation
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The employee performance appraisal is an important career development tool for the manager
and employee. The manager can help guide the employee on the path to corporate advancement,
and the employee gets a clearer understanding of what is expected from her in her daily job
duties. Performance appraisals have a wide variety of effects on employees that managers must
identify and understand.
Motivation
An employee performance appraisal can act as motivation for an employee to improve his
productivity. When an employee sees his goals clearly defined, his performance challenges
identified and career development solutions in place to help advance his career, the effect is to
motivate the employee to achieve those goals. Creating a comprehensive plan for employee
development and giving an employee achievements to strive for will inspire a higher level of
efficiency.
Clarity
Employees perform their job duties to the best of their abilities throughout the year based on
guidance from management. Part of a performance appraisal is when a manager and employee
review the job description and compare the employee's performance with expectations. This
gives the employee a feeling of clarity and understanding that will help him better perform his
job duties.

Take Responsibility
To prepare for the annual review, a manager should keep notes of all of the employee's
accomplishments and challenges throughout the year. When these are presented to the employee
during the appraisal, it gives the employee the opportunity to benefit from her accomplishments
and accept responsibility for the performance challenges. By claiming ownership of performance
issues, the employee makes the process of career development a more personal commitment.
Teamwork
During a performance appraisal, a manager needs to take time to show the employee how his
performance affects the productivity of the entire organization. When employees understand how
their performance affects the ability of others to do their jobs, it helps put his own job duties into
an overall company context. It helps improve the notion of teamwork among the staff, and can
also encourage cooperation to achieve corporate goals.
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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 Performance appraisal and motivation (pdf
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