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Performance appraisal techniques
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I. Contents of getting performance appraisal techniques
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A performance appraisal can be an important process for the employee and the manager. By
understanding and using basic performance appraisal techniques, a manager can create a useful
evaluation that assists the employee's development. The basic techniques of a performance
appraisal can be used together or separately as an evaluation tool.
Ongoing Data
According to the online business education resource Open Learning World, keeping an ongoing
record throughout the year of employee performance can help managers highlight the positives
and negatives during appraisal time. Maintaining detailed notes throughout the year and referring
to those notes at appraisal time will result in a well-rounded and accurate account of
performance.
Self-Evaluation
According to management consulting organization Toolpack Consulting, employee self-
evaluation can be valuable to the overall review and easy for a manager to administer. A self-
evaluation commonly consists of a preprinted form requiring the employee to rate his
performance based on several questions. There may be an essay section as well. Self-evaluations
help managers see if employees share the same views about productivity. Discrepancies can be
discussed at the appraisal meeting.
Interaction

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According to the Free Management Library, the interaction between manager and employee in
regard to employee performance should be an ongoing process. Managers should bring up
performance issues as they arise, rather than wait until evaluation time to point them out. At
appraisal time, the manager and employee should review their notes and discuss how the
solutions for employee issues helped or hindered employee development.
Team Evaluations
Toolpack Consulting recommends using a form of team evaluation known as a peer review. This
consists of a small group of the employee's co-workers giving their opinions on her performance
in a panel setting. Not only do workers gain a better perspective of the jobs performed by their
peers, but they also get the opportunity to openly air grievances. This does not need to be used as
the only form of appraisal, but it is a basic appraisal method that can have valuable insight for
the employee in a nonthreatening and constructive 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
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.

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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. 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 Performance appraisal techniques (pdf download)
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