Performance appraisal problems and solutions
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I. Contents of getting performance appraisal problems and solutions
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One of your organization's goals is to maintain a work force that is energetic, motivated and fully
engaged in the work. Employers sometimes chart the path to this goal by designing an elaborate
performance management system that only addresses one segment of employee performance.
Beginning
Schedule a time with your new employee to reach a mutual understanding of the job's duties and
responsibilities. Failure to take these initial steps may create issues upon completion of an
introductory period or a year-end appraisal. The first several weeks of employment are critical
for your new employee--the mutual agreement you reached earlier is solidified and you can then
hold your new employee to the performance standards established for her role with your
company.
Accountability
A prevalent issue pertaining to performance appraisals is the manager's inattentiveness to the
process and deadlines. Regardless of the expected outcome of a performance appraisal,
employees are usually anxious to know what their fate holds in terms of meeting company
expectations--they may expect a pay increase for the quality of their work or simply want to
know if they're performing up to par. Delay in the evaluation process causes frustration among
employees that leads to dissatisfaction with company management. Hold managers accountable
for preparing their employees' performance appraisals in a timely manner.

Adequate Feedback
Employers that provide regular feedback generally get high approval marks from their
employees. Workers feel good about managers who are genuinely appreciative of employee
efforts, even if it's just an informal "thanks for your hard work." With supervisors and managers
who understand the importance of feedback, you can maintain a work force that is motivated to
achieve high job performance. Providing feedback on just an annual basis tends to focus mainly
on the most recent accomplishments. Unless there is a method for tracking performance
throughout the year, only a portion of an employee's accomplishments are evaluated during the
appraisal.
The Right System
Utilizing a performance appraisal system that's right for your company size, work environment,
business and industry is important. The wrong type of performance appraisal can work against
you, and employees will not look forward to the process. A small work force may benefit from a
less formal, more interactive appraisal system where managers encourage employees to play an
integral role in assessing their own performance. On the other hand, larger organizations may
benefit from a more structured one that rates employees and designates wage increases in a more
systematic way.
Explain Your Purpose
Explain to employees how your organization invests time and effort in professional
development. Performance evaluations are not intended to be punitive--rather, the purpose of
evaluating job performance is to uncover strengths, identify weaknesses and work on striking a
balance between the two. In an article published in "Public Personnel Management," contributor
Gary Roberts cautions managers to remember the intent of performance evaluation is to provide
helpful feedback. Train your supervisors and managers on how to conduct performance
appraisals that instill pride in individual accomplishments and contributions to the company.
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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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