Benefits of performance appraisal

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I. Contents of getting benefits of performance appraisal

==================One of the most significant benefits of performance appraisal is

that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor
and subordinate to have "time out" for a one-on-one discussion of important work issues
that might not otherwise be addressed.
Almost universally, where performance appraisal is conducted properly, both
supervisors and subordinates have reported the experience as beneficial and positive.
Appraisal offers a valuable opportunity to focus on work activities and goals, to identify
and correct existing problems, and to encourage better future performance. Thus the
performance of the whole organization is enhanced.
For many employees, an "official" appraisal interview may be the only time they get to
have exclusive, uninterrupted access to their supervisor. Said one employee of a large
organization after his first formal performance appraisal, "In twenty years of work, that's
the first time anyone has ever bothered to sit down and tell me how I'm doing."
The value of this intense and purposeful interaction between a supervisors and
subordinate should not be underestimated.
Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse.
Performance appraisal provides employees with recognition for their work efforts. The
power of social recognition as an incentive has been long noted. In fact, there is
evidence that human beings will even prefer negative recognition in preference to no
recognition at all.
If nothing else, the existence of an appraisal program indicates to an employee that the
organization is genuinely interested in their individual performance and development.
This alone can have a positive influence on the individual's sense of worth, commitment
and belonging.
The strength and prevalence of this natural human desire for individual recognition
should not be overlooked. Absenteeism and turnover rates in some organizations might
be greatly reduced if more attention were paid to it. Regular performance appraisal, at
least, is a good start.
Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever
occur - for a supervisor and subordinate to recognize and agree upon individual training
and development needs.

During the discussion of an employee's work performance, the presence or absence of

work skills can become very obvious - even to those who habitually reject the idea of
training for them!
Performance appraisal can make the need for training more pressing and relevant by
linking it clearly to performance outcomes and future career aspirations.
From the point of view of the organization as a whole, consolidated appraisal data can
form a picture of the overall demand for training. This data may be analysed by
variables such as sex, department, etc. In this respect, performance appraisal can
provide a regular and efficient training needs audit for the entire organization.
Recruitment and Induction
Appraisal data can be used to monitor the success of the organization's recruitment and
induction practices. For example, how well are the employees performing who were
hired in the past two years?
Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies. By following the yearly data related to new hires (and given sufficient
numbers on which to base the analysis) it is possible to assess whether the general
quality of the workforce is improving, staying steady, or declining.
Employee Evaluation
Though often understated or even denied, evaluation is a legitimate and major objective
of performance appraisal.
But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since
evaluative and developmental priorities appear to frequently clash. Yet at its most basic
level, performance appraisal is the process of examining and evaluating the
performance of an individual.
Though organizations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit process
of judgement can be dehumanizing and demoralizing and a source of anxiety and
distress to employees.
It is been said by some that appraisal cannot serve the needs of evaluation and
development at the same time; it must be one or the other.
But there may be an acceptable middle ground, where the need to evaluate employees
objectively, and the need to encourage and develop them, can be balanced.

==================

III. Performance appraisal methods

1. 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.

2. 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.

3. 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 Raters biases

4. 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

5.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
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
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.
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.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. 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.

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