1. How to do a performance appraisal
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I. Contents of getting how to do a performance appraisal
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Ideally, the goal of your employee performance appraisals is to give employees feedback,
direction and development so they can be their best. But in many cases, performance appraisals
demoralize and discourage employees rather than engage and inspire them. Often, this is because
the process fails to respect the individuals involved. Instead, the focus is put on filling out forms,
and rating and ranking employees as “resources” rather than as individuals. Here are some
practical ways every manager can make their employee performance appraisals more respectful:
Seek your employee’s point of view
Before you make any decisions or judgments about performance, seek your employee’s
perspective. Ask them how they perceive their performance, their strengths, their weaknesses,
the challenges facing their role, etc. You can do this formally using a self-appraisal, but you can
use things like periodic one-on-one meetings, staff meetings, progress reports, performance
journals, etc. to get your employee’s perspective and allow them to provide details and context
you might be missing.
Make it a two-way dialogue
Your performance appraisal meeting should be a conversation about your employee’s
performance, development, expectations, needs, etc. Don’t just tell them what your ratings are
and assign them goals. Ask them what you could do to better support their performance. Share
your ideas, insights and observations. Solicit their input on goals. Ask what kind of learning
activities best suit their learning style. Discuss your ratings and explain why and how you arrived

2. at them. Ask for their perspective and discuss all this in a respectful way that accommodates
differences in communication style.
Value the employee for who they are
Sometimes as managers, we measure our employees against some fictional image of an ideal
employee. The truth is, none of us is perfect. We all have our strengths and weaknesses, our
good and bad days. No amount of training or coaching will ever make any of us perfect. So be
realistic about your employee’s skills, experience, abilities and weaknesses. Value and respect
your employee for who they are, not an idealistic image. Find ways to maximize their strengths,
and minimize their weaknesses. And if they truly aren’t a good fit for their current role, work
with them in a respectful way to them find work they are suited for.
Focus on the positive
In performance appraisals, it’s easy to fall into the trap of focusing on the negatives. We think
our work as managers is to identify and correct poor performance. But focusing on our
employee’s good performance is a more respectful and ultimately productive way to approach
the task. Work with your employee to identify the things that make them successful. What kinds
of people do they work best with? What work ignites their passion? What conditions help them
be creative or excel? By identifying the factors that support great performance, and working to
recreate them with and for our employee, we help them be their best.
Be constructive
If you have negative feedback to deliver, do it in a constructive way. Tell your employee what
they need to do to improve, and provide them with coaching, feedback and development to help
them improve. Then make sure you follow up with regular reviews, and recognize and reward
progress.
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III. Performance appraisal methods

3. 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

4. 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

5. 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.
III. Other topics related to How to do a performance appraisal (pdf download)
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