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Performance appraisal policy of a company
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I. Contents of getting performance appraisal policy of a company
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If handled correctly, the performance appraisal process is a mutual exchange between an
employee and his manager. The process allow the employee to get direct feedback about what he
is doing well and a clearer understanding of what he needs to improve upon. It provides the
manager a chance to share her expectations and give the employee valuable feedback. Nothing
should be a surprise in a performance appraisal, as all issues are best handled when they occur.
Company Process
Many companies, especially larger corporations, have a process in place for conducting
performance appraisals. Work with your Human Resources department to ensure you are
following the company sanctioned process. Base feedback only on aspects of the
employee’s job, which can include soft skills that include communication and
teamwork. Apply the process consistently across all employees and ensure the employee
understands her role in the process.
Timing And Forms
After an employee has been on the job for a minimum of 90 days or a maximum of six months,
deliver his first round of feedback. After the first evaluation, most companies complete a mid-
year and year-end appraisal. Adjust this as needed to accommodate individual learning curves
and challenging employees. Most companies provide a standardized form for managers to use. If
not, then create one using an easily updated word processing document.

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Manager Input
Document each area or task the employee is responsible for and indicate how the employee is
doing in respect to each. A numbered rating scale and a section for comments is sufficient.
Include both areas for improvement as well as those items the employee is doing well. Showing
the direct link between the employee’s tasks and company goals or missions
reinforces how employees’ actions affect the company as a whole.
Employee Input
After the manager documents her feedback, the employee will review and respond to the rating
and comments. Employees will get more out of their appraisal by not being defensive. Certainly
factual errors should be corrected, but placing emphasis on future changes is the way to approach
an appraisal. The employee should also document accomplishments she wants to emphasis and
any training or resources she needs to more effectively complete her job.
Conclusion
Follow the written part of the process with a meeting. This is the time for the employee to make
the manager aware of his career aspirations and skills he would like to learn. The manager and
employee will sign the appraisal document and receive copies. An official copy will also go into
the employee’s personnel file. Remember to keep an electronic copy; this will make
the next appraisal easier.
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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

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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.
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

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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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