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

1. Need of performance appraisal
In this file, you can ref useful information about need of performance appraisal such as need of
performance appraisal methods, need of performance appraisal tips, need of performance
appraisal forms, need of performance appraisal phrases … If you need more assistant for need of
performance appraisal, please leave your comment at the end of file.
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• performanceappraisal123.com/free-28-performance-appraisal-forms
• performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal
I. Contents of getting need of performance appraisal
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Performance appraisal may be defined as an evaluation made by the employer or the top
management. The purpose of implementing or carrying out performance appraisal activity is to
judge the overall performance of the employees in the business organization. It is by means of
this activity that the aspects, whether the employee has essentially required skills, knowledge and
attitude to perform the current tasks or the assignments to be given in the future, are to be
determined periodically. Moreover, it is through the process the capacity of the employees to
grow and develop in course of time is to be assessed. In this way, performance appraisal
programme provides factual information to be used as a basis to make differentiation between
efficient and inefficient employees in the business organization.
Apropos of what needs to be done and how it should be done to attain the predetermined
objectives, a range of some necessary characteristics in the employees is a must at organizational
level so that the end results must be as has been planned or intended. The characteristics that, in
the main, should exist are, such as, employee must have requisite skills for the job with
minimum or required qualification. He must have the right attitude to perform what has been
instructed or planned or to do what has been expected of him to do. He is supposed to contribute
his part to the total organizational objectives in an effective and efficient manner. Other qualities,
that is to say, loyalty to the company and maintaining integrity at all times- integrity in the sense,
he mustn’t turn away from doing right things, but follow with due diligence even though he is
not watched. As such, it should be apparent that the performance appraisal is not to be made only
on the basis of good academic accomplishments, but it is, in addition to what an employee has
possessed academically, on the basis of overall performance considering his qualification and

2. abilities and other required qualities. For these characteristics to be evaluated in the right
perspective, the performance appraisal is very much needed in the business organization.
Performance appraisal activity to be carried out smoothly in a business organization, various
methods that lead to make inferences and predictions, are adopted that, in turn, would be useful
to bring a conclusive evidence to the overall performance of the employees. And the sole
purpose of any method is to make observation thoroughly about the performance of the
employees and other elated factors so as to let them know where they stand and advise them how
they need to improve their performance. They are also to be notified for their weak areas in
which they need to put extra efforts to achieve a satisfactory level of performance or for which
they are to be trained. The process of performance appraisal also includes determining promotion
for those who deserve and the transfer in case it is to benefit both, the employee as well as the
organization.
It is necessary for a business organization to carry out the activity of performance appraisal
periodically as it entails twofold beneficial effect. To a business it does help to grow
strengthening total organizational competencies and creating effectiveness and efficiency. To the
employees, making them realize their full potential, it becomes a source to motivate them to do
their jobs in the best way.
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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

3. 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
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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