Performance appraisal types
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I. Contents of getting performance appraisal types
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An approach to employee performance appraisals depends on the employer's type of
performance management system. Other factors that affect your approach to employee
evaluation include company size, organizational goals and performance standards. Different
ways to approach performance appraisals include an informal communication with the employee,
a formal rating method or a blend of evaluation methods that serve the interests of the employer
and the employee.
Informal Evaluation Approach
Using an informal approach to employee evaluation can include an open, unstructured
conversation about employee goals, company goals and how the two blend to create performance
standards. Even though the approach is informal, the conversation must be documented to
become a part of the employee's personnel file. An essay format of documenting the
conversation may be the best format, provided the essay portions include employee and
supervisor input. In your discussion about performance standards and the evaluation period, the
employee articulates her goals and how she accomplished those goals. The supervisor
contributes feedback in as candid, honest a manner as possible. Following a discussion about
performance, the supervisor and the employee identify goals for the coming year. Ensure the
goals follow the SMART format -- specific, measurable, attainable, realistic and time-measured.
An informal approach to performance evaluations doesn't exclude discussion about typical
performance issues. It means the evaluation doesn't follow a strict format, yet it includes all the
elements of a performance appraisal.
Formal Evaluation Approach

A formal approach includes documentation and a structured format. The performance appraisal
form used contains specific performance standards. A graphic rating scale or management by
objectives performance method is probably best suited for the formal approach to evaluating
employee performance. A graphic rating scale provides quantitative measurement of an
employee's performance. Management by objectives, or MBOs, can serve as a checklist for
accomplishing employee goals that are aligned with organizational goals. MBOs can provide
quantitative and qualitative measurement of an employee's performance. A formal approach
lends itself to precision and a greater possibility for accuracy. In addition, the clear lines
established by this approach make documentation an easier task. The September 1999
"Entrepreneur" magazine article titled "Creating Effective Performance Appraisals" states: "It is
common knowledge that most managers and employees find participating in formal performance
appraisals as appealing as having a root canal. However, it is also true that -- for better or worse -
- formal performance appraisals are an inescapable part of organizational life." For this reason, a
formal approach to evaluating employees may be best suited for large organizations.
Informal/Formal Blended Approach
Striking a balance between an informal and a formal approach can involve an employee self-
evaluation in addition to the supervisor rating. In a blended format, both the employee self-
evaluation and supervisor evaluation are given equal weight in a final determination for overall
rating and merit increase. When asked to evaluate their own performance, many employees are
able to do so in an objective manner. If the supervisor also is capable of using objectivity in
rating the employee's performance, the two components should be very similar. When there's a
wide distance between the employee's evaluation and the supervisor rating, a candid discussion
and documentation to support each side can result in a mutually agreeable evaluation. The
University of Vermont encourages employee and supervisor participation in performance
appraisals, stating: "Let the employee feel he/she has some ownership of the appraisal process by
showing ideas and comments are welcomed by management. This helps the employee believe
the performance appraisal is a constructive activity and not one-sided."
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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.
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
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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