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1. Performance appraisal system definition
In this file, you can ref useful information about performance appraisal system definition such as
performance appraisal system definition rates, small performance appraisal system definition,
performance appraisal system definition calculator … If you need more assistant for performance
appraisal system definition, please leave your comment at the end of file.
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• performanceappraisal123.com/1125-free-performance-review-phrases
• performanceappraisal123.com/free-28-performance-appraisal-forms
• performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal
I. Contents of getting performance appraisal system definition
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Performance appraisals can be an organization’s greatest leadership tool. So why are
performance appraisals often “the job nobody wants”? This is because of the way the appraisal
process is designed and implemented. Organizations that establish their strategic objectives and
values, design their appraisal system to specifically measure progress toward these objectives,
and involve their employees in the process report substantial increases in productivity and
morale, and outperform organizations without performance management systems in almost every
measurable financial and productivity category.
Many of the organizations we work with have experienced dramatic changes in both the way
people work and the actual outcomes of the work when they developed a different approach to
their appraisal system. Their new system clearly outlines individual performance objectives,
provides employees with feedback about areas of success and areas needing improvement, and
recognizes employees for their contributions to the organization.
We are often asked to help organizations looking for a boost in productivity and morale. What
we find are employees who frequently express the same concern…“It doesn’t matter how hard I
work or how much value I add to the organization, I get the same recognition and reward as my
co-workers who contribute substantially less.” In these organizations, performance management
centers on unclear statements of business objectives, and feedback is reduced to uncomfortable
discussions of personality traits. Even worse, rewards are seen as either whimsical, bearing no
relation to performance, or as ironclad entitlements that follow cycles as predictable as the
seasons. In either case, there is no motivation for employees to improve their performance.

2. Our Employee Engagement Survey Benchmark of the top twenty-five percent of the companies
that we have surveyed clearly demonstrates that in organizations where managers provide
employees with constructive feedback and timely performance appraisals, employees report
better teamwork, higher morale, and an increased ability to accept and implement constructive
feedback. Organizations with structured performance appraisal systems also boast of
organizational growth beyond the projected measurements.
To capture these benefits, be sure that your performance appraisal system addresses the
following ten key elements:
1. Align individual performance expectations with the organization’s vision and values
A successful performance appraisal system always starts with a clear definition of the
organization’s vision, strategic objectives, goals, and values. After this is established,
align performance expectations for each position with the organization’s strategic
objectives by clearly defining what is expected for each position, and ensuring that each
performance measure directly supports the organization’s strategic objectives and goals.
2. Measure key results and competencies
Key results define what is to be accomplished, or the job’s end result, for example, the
number of parts to be manufactured or the amount of sales. Competencies reflect the
organization’s values and describe what the organization feels is important in regards to
how the work is to be accomplished, e.g., teamwork, initiative, communication.
Measuring both key results and competencies is critical to an effective performance
appraisal process.
3. Appraise clearly defined performance expectations
Employees must know exactly what they are to accomplish if they are truly expected to
add value to the organization. Performance expectations should be objective and data-
oriented, and should be designed to allow employees to count, rank, or rate their progress
on a regular basis so that they can make adjustments as needed. Employees should be
able to accurately evaluate their own performance and should not be “taken by surprise”
at the annual performance appraisal meeting.
4. Work together to develop performance expectations

3. Employees who have a role in developing their own performance expectations are more
likely to view the goals as achievable and to make a greater commitment to
accomplishing the goals. Individuals who help develop their objectives have a greater
understanding about the link between their job and the organization’s larger purpose.
Employees who clearly see their role in the organization’s success are substantially more
motivated.
5. Provide frequent and timely feedback
Measures alone will have little impact on performance if they are not translated into
feedback or rewards. Feedback should be frequent and provided at regular intervals
throughout the appraisal period. Feedback must be timely enough to allow employees an
opportunity to make appropriate adjustments. A simple way to frustrate employees is to
withhold feedback until the annual appraisal when it is too late for the employee to do
anything to improve.
6. Conduct performance appraisals as scheduled
Managers and supervisors who conduct performance appraisals on time send a message
loud and clear to their employees that says, “I care about you. Your performance and
success is important to me and the organization.” By contrast, managers who delay
performance evaluations also send a clear message that employees interpret as, “I expect
you to meet your goals, but I’m not really interested in you or your success.” The
appraisal should be representative of performance throughout the entire appraisal period
not just the week before the appraisal meeting.
7. Encourage employees to conduct a self-appraisal
Organizations that promote self-appraisal as part of the annual appraisal process report
increased productivity and greater rapport between supervisor and employees. Employees
that participate in the appraisal are more familiar with their standards of performance,
work harder to exceed the standards, and come to the appraisal meeting prepared to
identify ways to improve rather than passively wait for their supervisor to “pass
judgment” on them.
8. Evaluate employee performance against established performance standards
Performance should be compared against standards of acceptable performance for the
position, not to a co-worker’s on-the-job performance. A system that compares
employees to each other, requires managers to rank order employees, or evaluates

4. performance on a curve, is a sure way to undermine teamwork, communication, and
morale.
9. Schedule training on the appraisal process
Successful implementation of the appraisal process is the responsibility of every
employee. The organization’s responsibility is to provide adequate training for every
employee to ensure that the program is implemented successfully at every level. In
addition, it is important to provide managers and supervisors with training on coaching,
providing constructive feedback, and effectively dealing with performance problems and
difficult employees.
10. Demonstrate management commitment
A successful performance appraisal system starts at the top of the organization. Senior
managers must be committed to the program. Commitment is best demonstrated by
managers who work with their employees to define performance expectations, help them
develop skills to meet the expectations, and conduct performance appraisals on time.
When managers and supervisors view performance appraisals as part of an ongoing process
which can positively lead to improved employee performance, there are far-reaching benefits not
only for the individual, but also for the organization as a whole. Managers with that perspective
no longer view conducting performance appraisals as “the job nobody wants.” Instead, they
recognize the valuable treasure of this leadership tool.
==================
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

5. 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

6. 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

7. 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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