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The performance appraisal process

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I. Contents of getting the performance appraisal process

The performance appraisal process is one that few look forward to. However, understanding the
process can help managers and employees conduct a more fruitful appraisal. At the University of
Texas at Dallas, managers are taught that "A chief purpose of any performance appraisal program
is employee development. This goal is accomplished by helping the employee to do a better job
and by developing in the employee the knowledge and skill to meet the future needs of the work
unit and the institution."
Establish a File
For managers to be effective and help employees develop skills and capabilities, it’s
essential to begin the performance management process on the employee's first day.
Create a file for each employee and record the accomplishments, areas for improvement and
regular feedback throughout the year.
Provide Regular Feedback
Regular feedback should occur at least once each quarter and more frequently if an employee
needs encouragement or motivation. According to the American Society for Clinical Laboratory
Science, “The performance management process starts with employee planning and ends
with an evaluation of employee progress. Managers and employees should meet to discuss
planning and goals throughout the year. If possible, formally sitting down with your supervisor
or manager on a quarterly basis is optimal. The process, at its best, is a collaborative one which
should add value for both the employee and the employer.”
Employees thrive on feedback because it ensures they are performing job duties and

responsibilities according to the company’s expectations. The feedback can be given in a

casual manner, provided the topic of the feedback is suitable for a casual meeting. Always
document any feedback you provide to employees, even if it’s just to say “great
Discipline Issues
Throughout the year, an employee may engage in behavior that warrants disciplinary action.
Your company’s procedure for addressing discipline should include a requirement to
document every disciplinary action taken. All disciplinary issues and improvements are taken
into account during the annual performance appraisal meeting.
Management by Objectives
Management by objectives, or MBOs, is another step in the performance appraisal process used
for some employees who have defined goals and steps to achieve each goal. These MBOs really
should be reviewed quarterly to track progress or redefine the goal if neither of you see enough
progress. MBOs are also particularly helpful to employees who are on a professional career track
within your business.
Conduct the Appraisal Meeting
As the time nears for scheduling the appraisal meeting, begin preparing the performance
appraisal document. Many companies have lengthy forms that require managers to record
relatively detailed information about the employee’s performance in all areas of the job.
Performance is rated in areas such as job proficiency, interpersonal relationships, communication
skills and aptitude.
Some employers consider employee self-evaluations. In these cases, the employee should
prepare her comments about her performance during the past year. Both the manager and the
employee should feel comfortable during the appraisal meeting. Tension will just make the
meeting agenda much more difficult and uncomfortable than it needs to be.
Follow Up Action
After the performance appraisal meeting, there will likely be follow up matters such as
discussing areas for improvement, establishing goals for the next year and confirming the
employee's salary or wage increase. In addition, the manager and employee may schedule
another time to discuss unresolvable issues that arise during the performance appraisal meeting.


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
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
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

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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