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promotions and other benefits. This system ensures that those who deserve recognition for their
efforts are not taken for granted by falling through the cracks when it comes to documenting
their success. It also allows you to see, in black and white, whom you can rely on for difficult
assignments and who needs added help to improve performance. In addition, ranking helps you
know who the best and brightest are so that you can ensure their job satisfaction and retention.
Disadvantages
When comparing one employee to another, it is sometimes hard for a manager to remain
objective. Identifying the performance accomplishments of an employee can be clouded by how
well-liked that person is in the work group. Also, undesirable competitive behavior could
increase when employees at the top of the ranking are earning financial incentives. It's
imperative for members of a group to work well together and, even if getting along with others is
one of the objectives that determines ranking, it is tempting to withhold important information,
not communicate effectively with teammates and exhibit other actions that sabotage the outcome
of a coworker's performance. Also, if all of your employees are performing at a satisfactory level
or above, you need to choose the ones who will be ranked at the lowest levels. This does not
accurately represent the performance of some employees, which can negatively impact morale.
Alternatives
Other employee appraisal methods can be used if ranking does not fit into your corporate
mission. Comparing employees to performance standards instead of each other is a type of rating
system that is based on results. The performance report states a job duty and offers a variety of
ways to accomplish it, with each one describing a level of performance from less than
satisfactory to outstanding. Number rating identifies how well the employee is performing. This
is similar to the results method, except that the levels of performance are weighted and the
outcome is a total number that determines an overall score. A 360-degree feedback system uses
anonymous reports from people with whom the employee comes in contact, such as other
supervisors, coworkers and customers.
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1. Essay Method
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
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