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Good performance appraisal
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I. Contents of getting good performance appraisal
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Managers perform annual performance evaluations to provide critical feedback to employees.
The annual performance evaluation is also a time for managers to distribute yearly pay raises or
bonuses to workers who have performed well during the review period. Appraisals are a tool
managers can use to improve the efficiency, productivity and morale of workers in the company.
Communicate Expectations
Performance evaluations provide the opportunity to reinforce the expectations the company has
for workers in regards to job duties, quality and productivity. Communicating the expectations
gives the worker the ability to meet the requirements of the job and earn positive appraisals.
Managers get better results when employees have a clear picture of what the company expects on
the job.
Feedback
Positive and negative feedback is an important part of a performance evaluation. The appraisal is
a chance for managers to sit down with employees and identify the areas the worker can improve
and those they performed well. Managers can provide workers with the information the
employee needs to obtain better evaluations in the future. It is important for managers to give
praise when the worker deserves it. Giving praise to employees improves morale, which can
increase productivity and reduce worker turnover.
Self-Assessment

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A well-rounded performance appraisal requires the worker to assess his own performance on the
job. The self-assessment allows the worker to take an honest look at his work during the review
period and point out his achievements and weaknesses. The employee has an opportunity to state
his point of view on his job performance. Giving workers an opportunity to assess their own
performance can improve morale.
Goals
The performance evaluation is a good time for managers and workers to discuss goals for future
review periods. For example, when a worker expresses an interest in taking on more
responsibility on his job, the manager can arrange to give the worker more opportunities during
the review period. In addition, when a manager knows the goals of his workers, he can better
utilize the staff and help employees achieve their ambitions.
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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

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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

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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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III. Other topics related to Good performance appraisal (pdf download)
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