In this file, you can ref useful information about balanced scorecard performance appraisal such as balanced scorecard performance appraisal methods, balanced scorecard performance appraisal tips

1. Balanced scorecard performance appraisal
In this file, you can ref useful information about balanced scorecard performance appraisal such
as balanced scorecard performance appraisal methods, balanced scorecard performance appraisal
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I. Contents of getting balanced scorecard performance appraisal
==================
Traditionally, many Federal agencies have measured their organizational performance by
focusing on internal or process performance, looking at factors such as the number of full-time
equivalents (FTE) allotted, the number of programs controlled by the agency, or the size of the
budget for the fiscal year. In contrast, private sector businesses usually focus on the financial
measures of their bottom line: return-on-investment, market share, and earnings-per-share.
Alone, neither of these approaches provides the full perspective of an organization's performance
that a manager needs to manage effectively. But by balancing internal and process measures with
results and financial measures, managers will have a more complete picture and will know where
to make improvements.
Balancing Measures
Robert S. Kaplan and David P. Norton have developed a set of measures that they refer to as "a
balanced scorecard." These measures give top managers a fast but comprehensive view of the
organization's performance and include both process and results measures. Kaplan and Norton
compare the balanced scorecard to the dials and indicators in an airplane cockpit. For the
complex task of flying an airplane, pilots need detailed information about fuel, air speed,
altitude, bearing, and other indicators that summarize the current and predicted environment.
Reliance on one instrument can be fatal. Similarly, the complexity of managing an organization
requires that managers be able to view performance in several areas simultaneously. A balanced
scorecard or a balanced set of measures provides that valuable information.
Four Perspectives

2. Kaplan and Norton recommend that managers gather information from four important
perspectives:
 The customer's perspective. Managers must know if their organization is satisfying
customer needs. They must determine the answer to the question, How do customers see
us?
 The internal business perspective. Managers need to focus on those critical internal
operations that enable them to satisfy customer needs. They must answer the question,
What must we excel at?
 The innovation and learning perspective. An organization's ability to innovate, improve,
and learn ties directly to its value as an organization. Managers must answer the question,
Can we continue to improve and create value for our services?
 The financial perspective. In the private sector, these measures have typically focused on
profit and market share. For the public sector, financial measures could include the
results oriented measures required by the Government Performance and Results Act of
1993 (GPRA). Managers must answer the question, How do we look to Congress, the
President, and other stakeholders?
Tie-In to Employee Performance
The balanced scorecard philosophy need not apply only at the organizational level. A balanced
approach to employee performance appraisal is an effective way of getting a complete look at an
employee's work performance, not just a partial view. Too often, employee performance plans
with their elements and standards measure behaviors, actions, or processes without also
measuring the results of employees' work. By measuring only behaviors or actions in employee
performance plans, an organization might find that most of its employees are appraised as
Outstanding when the organization as a whole has failed to meet its objectives.
By using balanced measures at the organizational level, and by sharing the results with
supervisors, teams, and employees, managers are providing the information needed to align
employee performance plans with organizational goals. By balancing the measures used in
employee performance plans, the performance picture becomes complete.
==================
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
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

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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