Project on performance appraisal
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I. Contents of getting project on performance appraisal
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Performance management is an integral part of the workplace as it provides a platform for
supervisors and managers to measure employee performance and determine whether employees
are meeting the company's expectations. The method of performance measurement varies
according to the work environment, type of business and, to some extent, the employee's
occupation.
Overview
Employee performance measurements can determine an employee's compensation, employment
status or opportunities for advancement. For these reasons, performance management programs
must consist of methods that enable fair and accurate assessments of employee performance. To
assist with measuring employee performance, employers first establish performance standards.
Performance standards define what it takes for employees to meet or exceed the company's
performance expectations.
Graphic Rating Scales
Graphic rating scales are ideal for production-oriented work environments, as well as for other
workplaces that move at a fast pace, such as those found in the food and beverage industry. A
rating scale consists of a list of job duties, performance standards and a scale usually from 1 to 5
for rating employee performance. This method for measuring employee performance requires
preparation just like other methods; however, it can be completed relatively quickly, which is a
plus for supervisors who manage large departments or competing assignments in an environment
that leaves little time for workforce management duties.

Management by Objectives
Management by objectives, or MBOs, are useful for measuring the performance of employees in
supervisory or managerial positions. MBOs start with identifying employee goals, and from that
point the employee and her manager list the resources necessary to achieve those goals. The next
section of MBOs consists of the timelines for achieving each goal. Throughout the evaluation
period, the employee and her manager meet periodically -- quarterly is best -- to discuss the
employee's progress and to reset goals for which the employee needs additional time or resources
to complete. The employee's performance is measured by how many of her goals she
accomplished within the designated time frame.
Forced Ranking
Forced ranking earned a bad name from the time this method became popular during the reign of
GE's former CEO, Jack Welch. Welch advocated supervisors and managers ranking employees
into three groups. The top performers comprise roughly 20 percent of the workforce, average
performers 70 percent and the lowest-performing employees make up about 10 percent of the
workforce. Forced ranking measures employees' achievements against those of their peers,
instead of comparing the employee's current evaluation period against the employee's own past
performance. For this reason, forced ranking lends itself to creating a very competitive work
environment.
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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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