What is performance appraisal what are its objectives

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I. Contents of getting what is performance appraisal what are

its objectives
==================
One well-regarded and widely used approach to performance appraisal is called management by
objectives (MBO). By definition, under this method, you evaluate your employees on the basis
of results. MBO is more than performance appraisal its a construct for managing the entire
organization. Its breadth includes the organizations vision, values, strategies, goals, and
performance measurement.
MBO begins with managers at the top of the company setting goals. Then managers and
employees at each successively lower level develop their own goals. Employees goals are
designed to support the goals of their own managers. In this way, the entire organization is linked
together in the pursuit of objectives.
The focus is on outcomes that are clear, specific, measurable, and supported by action plans,
benchmark dates, and deadlines. All aspects of the goal-setting process also apply to
the employees personal and developmental goals, such as building their skills or knowledge
base.

After employees meet with their managers to establish their goals and action plans, the
employees return to work newly energized and focused on specific short-term and longer-term
targets. Simultaneously, their managers monitor the employees performance, provide coaching
and support, remove barriers or help employees overcome them, and make adjustments and
course corrections as necessary. The employees performance and progress are clear, measured,
documented, and transparent every step of the way.
Employees are highly motivated through MBO because theyve been able to actively participate
in the process of setting goals, instead of simply having the goals dumped on them. Their
involvement in this type of decision-making helps meet many of their higher-level needs for
accomplishment, achievement, recognition, and self-worth.
MBO brings a wide range of advantages to the appraisal process:

It helps build relationships between managers and employees. MBO includes a great
deal of contact and communication between managers and their employees, which builds
camaraderie, communication, and trust all key elements in strengthening teamwork.

It fosters a comfortable climate in the workplace. MBO helps build an atmosphere of

respect and trust within a given department and beyond.

Because managers work directly with employees to identify and solve problems,
MBO improves the quality of decision-making and problem solving.

Its fair. Employees are evaluated on the basis of their performance and attainment of
goals, which is regarded as fair and energizing.

Its quick and easy. Performance evaluation forms associated with MBO are a breeze to
complete. Typically, they spell out each objective as established at the beginning of the
cycle, and then provide a space for the manager to summarize the results.

Some MBO forms also include a scale that asks for a numerical assessment of the employees
success in meeting their goals. These scales guide the managers in the rating process by
including specific descriptions of excellent, good, fair, and poor levels of goal attainment.
==================

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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