1. Concept of performance appraisal
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I. Contents of getting concept of performance appraisal
One of the things that most employees dread about the annual performance review is the feeling
of unfairness in the employee ratings. Performance review calibration takes away the impression
of having a biased or unjust review system by establishing a fair and equitable standard by which
all employees are measured. Since promotions and other career decisions are based in part on the
performance reviews of employees, it’s important that managers throughout an organization are
viewed as being consistent and fair in how they evaluate employees. Performance review
calibration does this. It eliminates the issue of one supervisor's “easy” rating system versus
another supervisor's “difficult” rating system. Another issue that comes up is that employees feel
they receive the same pay for the same job but have different performance expectations from
different managers. All of this leads to distrust in the performance review process. Performance
review calibration improves the consistency and provides a platform for overall “honesty and
fairness” in the ratings system across an organization.
Calibration drives truth into performance reviews, creating a more honest appraisal of an
employee’s work. It is a process in which multiple managers come together to discuss
employees’ performance ratings thus ensuring an objective assessment is made based on past
performance and in relation to other employees with similar job descriptions. The calibration
process provides an opportunity for managers to learn to use the same language and share an
understanding of the core competencies and expectations of employee behavior. So, not only
does this process answer the employee’s question "How am I doing?" but it provides context by
telling the employee how good a job he or she did compared with his or her peers.
Using performance calibration, managers can discuss how to apply similar standards for all
employees and help eliminate any potential manager bias. For example, prior to using
performance review calibrations, all employees working for one manager may receive
“outstanding” ratings while employees working for another manager may receive a wide-variety
of ratings—anything from “outstanding” to “meets expectations” to “below expectations” for the
same job. The reviews between the two teams would need to be calibrated to take into account
the different reviewing styles and get a better idea of who is really doing well and who is not.
After implementing calibrations, these managers will hold each other accountable for their
ratings and extremely hard and extremely easy reviewers will be brought into line with the rest of
their peers for more honest and in-depth performance reviews.
Calibration allows you to find out who your real superstars are to allow you to develop them and
reward appropriately. It is helpful when you are considering which employee holds the critical
skills for a particular job. Calibration can identify a mentoring opportunity, triggering the
manager to dig deeper into the source of the skill, and highlight growth opportunities.
Ultimately, performance review calibration provides benefits to employees, managers and
executives alike. Employees appreciate the consistent standards of performance being applied to
all individuals doing similar work, significantly reducing rating errors and personal biases.
Managers take performance management very seriously due to the justification process to their
peers during performance review calibration. Calibration processes even include an added
benefit of coaching for the managers as well—peer managers discuss why some employees
should receive training and development over financial compensation and, with HR involved,
can coach the direct supervisor on how to discuss the situation with the employee. Additionally,
executives benefit from being able to review the calibration metrics and learn how their mangers
are developing and managing their resources.
III. Performance appraisal methods
3. 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
Advantages of Ranking Method
i. Employees are ranked according to their performance
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
4. 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
5. 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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