APPRAISAL PERFORMANCE PROCESS

DEFINITION
Meaning Performance appraisal is the step where the management finds out how effective it
has been at hiring and placing employees. A “Performance appraisal” is a process of
evaluating an employee’s performance of a job in terms of its requirements
Meaning Performance appraisal is the step where the management
finds out how effective it has been at hiring and placing employees. A “Performance appraisal”
is a process of evaluating an employee’s performance of a job in terms of its requirement

HISTORICAL BACKGROUND
As far back as World War I, As far back as was credited with coming up with performance
appraisal. Formal Performance Appraisal systems were well established by the mid 1950s, with
personality-based systems being widely used. McGregor (1957)
illustrated the unease surrounding the use of personality-based
ratings and advocated a more participative approach and
performance-based approach, including an element of self-appraisal.
This process looked forward (to what the individual might be able to
achieve in the future) more than it looked backward (i.e. the
'personality' that they had inherited). was credited with coming up
with performance appraisal. Formal Performance Appraisal systems
were well established by the mid 1950s, with personality-based
systems being widely used. McGregor (1957) illustrated the unease
surrounding the use of personality-based ratings and advocated a
more participative approach and performance-based approach,
including an element of self-appraisal. This process looked forward (to what the individual might
be able to achieve in the future) more than it looked backward (i.e. the 'personality' that they
had inherited).

Objectives of Performance Appraisal

The main objective of performance appraisals is to measure and improve the
performance of employees and increase their future potential and value to the company.
Providing Feedback. Providing feedback is the most common justification for
an organization to have a performance appraisal system. Through its performance
appraisal process the individual learns exactly how well he/she did during the previous
twelve months and can then use that information to improve his/her performance in the
future. In this regard, performance appraisal serves another important purpose by
making sure that the boss’s expectations are clearly communicated.

Facilitating Promotion Decisions. Almost everyone in an organization

wants to get ahead. How should the company decide who gets the brass rings?
Performance appraisal makes it easier for the organization to make good decisions
about making sure that the most important positions are filled by the most capable
individuals.

Rightsizing or Downsizing Decisions. If promotions are what

everybody wants, layoffs are what everybody wishes to avoid. But when economic
realities force an organization to downsize, performance appraisal helps make sure that
the most talented individuals are retained and to identify poor performers who effects
the productivity of the organisation.
Encouraging Performance Improvement. How can anyone improve
if he doesn’t know how he’s doing right now? A good performance appraisal points out
areas where individuals need to improve their performance.

Motivating Superior Performance. This is another classic reason for

having a performance appraisal system. Performance appraisal helps motivate people
to deliver superior performance in several ways. First, the appraisal process helps them
learn just what it is that the organization considers to be ‘‘superior.’’ Second, since most
people want to be seen as superior performers, a performance appraisal process
provides them with a means to demonstrate that they actually are. Finally, performance
appraisal encourages employees to avoid being stigmatized as inferior performers (or,
often worse, as merely ‘‘average’’).

Setting and Measuring Goals. Goal setting has consistently been

demonstrated as a management process that generates superior performance. The
performance appraisal process is commonly used to make sure that every member of
the organization sets and achieves effective goals.

Counseling Poor Performers. Not everyone meets the organization’s

standards. Performance appraisal forces managers to confront those whose
performance is not meeting the company’s expectations.

Determining Compensation Changes. This is another classic use of

performance appraisal. Almost every organization believes in pay for performance. But
how can pay decisions be made if there is no measure of performance? Performance
appraisal provides the mechanism to make sure that those who do better work receive
more pay.

Encouraging Coaching and Mentoring. Managers are expected to be

good coaches to their team members and mentors to their proteges. Performance
appraisal identifies the areas where coaching is necessary and encourages managers
to take an active coaching role.

Supporting Manpower Planning. Well-managed organizations regularly

assess their bench strength to make sure that they have the talent in their ranks that
they will need for the future. Companies need to determine who and where their most
talented members are. They need to identify the departments that are rich with talent
and the ones that are suffering a talent drought. Performance appraisal gives
companies the tool they need to make sure they have the intellectual horsepower
required for the future.
Determining Individual Training and Development Needs. If
the performance appraisal procedure includes a requirement that individual
development plans be determined and discussed, individuals can then make good
decisions about the skills and competencies they need to acquire to make a greater
contribution to the company. As a result, they increase their chances of promotion and
lower their odds of layoff.

Determining Organizational Training and Development

Needs. Would the organization be better off sending all of its managers and
professionals through a customer service training program or one on effective decision
making? By reviewing the data from performance appraisals, training and development
professionals can make good decisions about where the organization should
concentrate company-wide training efforts.

Validating Hiring Decisions. Is the company hiring stars, or is it filling itself

with trolls? Only when the performance of newly hired individuals is assessed can the

company learn whether it is hiring the right people. Performance

Appraisal Rating Factors
The following are samples of rating factors and example standards taken from a variety
of sources. Some may overlap, and some may need to be expanded to include more
descriptive and/or numerical measures. Please feel free to combine or modify them to fit
your needs by cutting and pasting.

GENERAL FACTORS
1. Adaptability
Efficiency with which employee works under stress and responds to change.

o Receptive to change/new ideas

o Shows poise and/or courtesy in tough situations
o Demonstrates ability to modify behavioral style and approach to goal

2. Assertiveness/Motivation
Degree to which the employee pursues goals with commitment and takes pride in
accomplishment.

o Takes initiative eagerly

o Demonstrates orientation to achieve results
 o Behavior reflects a desire to excel on the job
o Works steadily and actively
o Demonstrates self-confidence and positive attitude towards self and
others

3. Attendance
The extent to which the employee can be depended upon to be available for
work and to fulfill position responsibilities.

o Reports to work on time

o Communicates schedule changes promptly to supervisor
o Maintains regular attendance

4. Communication
The extent to which the employee effectively listens, conveys and receives ideas,
information and direction.

o Seeks to clarify and confirm the accuracy of their understanding of

unfamiliar or vague terms and instructions
o Makes oral and written communication clear and easy to understand
o Assesses and takes steps to improve ability to communicate (written and
verbal) so ideas and consultations are conveyed with precision and
efficiency

5. Creativity
Extent to which employee generates workable and innovative ideas, concepts
and techniques.

o Attempts to simplify and/or improve procedures and techniques

o Initiates new and creative ideas or procedures to enhance the department
or organization
o Looks for new solutions to old problems

6. Customer Focus
The degree to which the employee takes the initiative to meet internal and
external customer needs in a timely and courteous manner.
 o Examines customer requests to properly identify and resolve customer
concerns
o Supports customer service efforts through program design,
implementation, recovery and follow-up

7. Customer Service

o Serves customers in a manner that increases their confidence and

knowledge to resolve their own problems
o Acknowledges shortcomings when appropriate
o Reaffirms commitment to professional service
o asking probing questions that elicit the facts and help the customer
through some of the decision-making process
o Responds to customer requests on contact date or within 24 hours

8. Dependability/Initiative
The extent to which an employee effectively and enthusiastically accomplishes
assignments with minimal supervision.

o Independently contributes ideas and projects

o Adapts to change
o Follows-through on work assignments
o Demonstrates eagerness and positivism
o Shares ideas and suggestions
o Takes on new responsibilities
o Willing to assist co-workers

9. Job Knowledge
The demonstration of technical, administrative, managerial, supervisory, or other
specialized knowledge required to perform the job. Consider the degree of job
knowledge relative to length of time in the current position.

o Able to answer difficult questions

o Effectively learns new skills
o Maintains up-to-date job related information

10. Judgment
Ability to analyze problems or procedures, evaluate alternatives, and select best
course of action.
 o Uses of logic and common sense in decision making
o Makes appropriate and consistent decisions
o Obtains and evaluates pertinent information to determine source of and
alternative solutions to problems

11. Initiative
The degree to which the employee independently performs and accomplishes
assignments.

o Requires minimal supervision

o Sees and acts upon opportunities
o Independently contributes ideas and projects
o Promptly undertakes problems and devises solutions
o Acts independently within established guidelines

12. Interpersonal Relations

The degree to which the employee shows understanding and sensitivity to needs
and problems of others.

o Actions are intended to calm, diffuse, and be helpful

o Interacts positively with a variety of people in different situations
o Accepts and acknowledges suggestions from others
o Works cooperatively and effectively with others to achieve unit goals

13. Management Skills

Extent to which employee demonstrates effective management abilities and
overall results.

o Effectively sets goals and establishes priorities

o Improves work methods
o Achieves expected results
o Plans and administers budgeted funds
o Implements cost-saving procedures, expense control, etc.
14. Planning & Organizing
The extent to which the employee plans, organizes and implements tasks or
programs.

o Demonstrates effective use of time and facilities subject to their control

o Meets deadlines
o Maintains a clear grasp of daily tasks
o Prioritizes duties in a manner consistent with organizational objectives
o Effectively manages tasks or program assignments including follow-
through and delegation

15. Problem Solving & Decision Making

Degree to which employee demonstrates ability to clearly isolate, define and
seek solutions to problem areas.

o Effectively identifies & evaluates alternative solutions

o Makes decisions consistent with skills and experience
o Recognizes decisions that have to be deferred until all pertinent facts are
gathered and analyzed
o Flexible in modifying decisions

16. Productivity
Degree to which the employee produces the expected quality and quantity of
assignments.

o Attains conclusive measurable results

o Maintains control and work pace
o Completes assignments on time and to specifications

17. Quality of Work

The ability to set high standards for own personal performance; strive for quality
work; put forth extra effort to ensure quality work.

o Develops and implements new solutions, procedures and concepts

o Demonstrates accuracy, thoroughness, and reliability
o Shows organization and completeness
o Pays attention to detail
o Consistently delivers what is required when required
18. Quantity of Work
The volume of work produced by the employee, along with his or her speed,
accuracy and consistency of output.

o Accomplishes assigned work in an organized, timely manner

o Alerts appropriate team member if deadlines need to be re-negotiated to
accomplish work with higher priority

19. Resourcefulness
Consider the degree to which employee is a source of supply and support to the
department, customers, and/or the organization as a whole.

o Masters difficult situations in a timely and effective manner

o Answers questions and deals with problems effectively and thoroughly

20. Responsibility
The degree to which the employee demonstrates dependability in work
performance.

o Completes work in a timely, capable and reliable manner

o Adheres to instructions
o Maintains regular attendance

21. Safety
Degree to which employee adheres to safety and health regulations.

o Maintains and observes safety and health standards

o Notifies others when violating safety and health regulations
 Search this site

 Home Page
 Job Sites
 HRM PPTs
 Managerial Economics
 HRM Books
 Feedback
 Recent Site Activity
Traditional methods of Performance Appraisal - Rating Scales Method - Confidential report system

Performance Appraisal

 Performance Appraisal
 History & origin of Performance Appraisal
 Objectives of Performance Appraisal
 Benefits of Performance Appraisal
 Performance Appraisal Process
 Performance Appraisal Rating Factors
o Traditional methods of Performance Appraisal
o Modern Methods of Performance Appraisal
o 360 Degrees Performance Appraisal
 How to get best performance appraisal from your boss?
 Performance Appraisal at Pepsi-Cola International
 Potential Appraisal
 Performance Counseling

1.Rating Scales Method

Rating Scales Method is commonly used method for assessing the performance of the employees and well-know
Many corporations and companies example in the country India, telecommunications company likely airtel and
for evaluating the employees and subsequently take decisions on concerned employee.

Depending upon the job of employee under this method of appraisal traits like attitude, performance, regularity, a
10. 1 indicates negative feedback and 10 indicates positive feedback as shown below.

Attitude of employee towards his superiors, colleagues and customers

1 2 3 4 5 6 7 8 9 10
Extremely Excellent
poor

Regularity in the job

1 2 3 4 5 6 7 8 9 10
Extremely outstanding
poor

Under this method of performance appraisal, employee may be assessed by his superiors, colleagues, subordinate
of the company or job which is added where the employee. Appraiser is a person who appraises employee will gi
number basing on his observation and satisfaction. ultimately all numbers chosen or marked will be added to dete
scored more points will be treated as top performer following descending scored employees will be treated as lo
non-performers.

2. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves a description of the performance
evaluation of the performance of any individual based on the facts and often includes examples and evidences to
the inseparability of the bias of the evaluator.

Under this method, the rater is asked to express the strong as well as weak points of the employee’s behavior. Th
graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rat
considers the following factors:

 Job knowledge and potential of the employee;

 Employee’s understanding of the company’s programmes, policies, objectives, etc.;
 The employee’s relations with co-workers and superiors;

How is technology helping transform performance appraisal and ma

The most common cliché is “performance appraisal is dead“. What it means is the annual performance
regular, realtime, anecdotal and casual feedback. Just as young people do not write e-mails anymore th
performance appraisal at the end of the year. Companies are moving to real-time performance appraisa
realtime. And technology plays the most crucial role in providing the platform to have fast and quick a

 The employee’s general planning, organizing and controlling ability;

  The attitudes and perceptions of the employee, in general.

Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e., the essa
also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitatio

 It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will b
 Some evaluators may be poor in writing essays on employee performance. Others may be superficial in e
the actual performance of the employee. It is very difficult to find effective writers nowadays.
 The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly
worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point o
costly.

3. RANKING METHOD
How do we use the ranking method? Under the ranking method, the manager com-pares an employee to other
offshoot of ranking is the forced distribution method, which is similar to grading on a curve. Predetermined perce
categories, for example, excellent,above average, average, below average, and poor,. The employees ranked in th
those not at the top tend to have the reward withheld, and those at the bottom sometimes get punished. In Self-As
performance of your peers.

Why and when do we use the ranking method? Managers have to make evaluative decisions, such as who is th
who gets laid off. So when we have to make evaluative decisions, we generally have to use ranking. However, o
methods and forms. Ranking can also be used for developmental purposes by letting employees know where they
to improve performance. For example, when one of the authors passes back exams, he places the grade distributi
grades—but it lets students know where they stand, and he does it to motivate improvement.

4. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with al
on the basis of the overall comparisons, the employees are given the final rankings.

5. CRITICAL INCIDENTS METHODS

This technique of performance appraisal was developed by Flanagan and Burns.
The manager prepares lists of statements of very effective and ineffective behavior of an employee. These critica
behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically recor
rating period, these recorded critical incidents are used in the evaluation of the workers’ performance. An examp
following:

July 20 – The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solv

On the other hand the bad critical incident may appear as under:
July 20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to
stubborn and uninterested in work.

This method provides an objective basis for conducting a thorough discussion of an employee’s performance. T
much emphasis). This method suffers however from the following limitations:
 Negative incidents may be more noticeable than positive incidents.
 The supervisors have a tendency to unload a series of complaints about incidents during an annual perform
 It results in very close supervision which may not be liked by the employee.
 The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to d

6. CONFIDENTIAL REPORT SYSTEM

Confidential report system is well known method of performance appraisal system mostly being used by the the
method of appraising system, subordinate is observed by his superiors regarding his performance in the job and
report on his performance, mainly on his behaviour in the organisation and conduct and remarks if any. confiden
to anyone and finally confidential reports will be forwarded to the top management officials for taking decision a
Confidential reports are the main criteria for promoting or transferringof any employee mainly in the governm
police Department and other government departments in the India are using confidential reports method as a tool
connecting to him.

Procedure of confidential report system

The superiors who appraises their subordinates performance, behaviour and other key issues will be kept in the fo
report. Confidential report should not be sent openly on a paper, it must be kept in a sealed cover to send it to de
allowed to open the sealed covers which consists of confidential reports. Confidential reports shall not be hand

Key factors assessed in Confidential Report writing

 Character and conduct of an employee
 Absenteeism of an employee
 Knowledge of an employee
 His nature and quality of work
 Punctuality of employee
 Unauthorised absenteeism or leave without permission
 Behaviour of an employee with colleagues, superiors and with public
 Ability of supervision and controlling
 His/her integrity and honesty
 If any complaints against employee

Concern High Court is empowered for evaluating performance of a judicial

Constitution]
 IN THE HIGH COURT OF DELHI AT NEW DEL
Judgment Reserved on : 12.04.2018
Judgment Pronounced on: 30.08.2018

W.P.(C) 2759/2000
AND
CM APPL. 19808/2017

AJAIB SINGH DATEER ..... Petitioner

Through Dr. M.P. Raju with Ms. C. Kanta Dateer and Mr. Gurpreet Singh, Advs.
versus
LT. GOVERNOR & ORS .....Respondents
Through Mr. Viraj R. Datar, Adv. for DHC.

Judgement: View / download

Concern High Court is empowered for evaluating performance of a judicial off

Constitution]

The petitioner, who was awarded ‘C’ grading with the remark “doubtful integrity”, had challenged his ACR (An
that it was “entirely unfounded” as it was based entirely on hearsay and not any objective material.

It held that by virtue of Article 235 of the Constitution of India, the task of considering and evaluating per
quasi-judicial duties and responsibilities, is that of the High Court.

The performance evaluation of character and integrity of the judicial officer can only be done by his parent organ
said to be supplanted, the Court held.

“The assessment and evaluation of the performance of such officials is merely an input for the overall determ

The Court, hence, concluded that there was no infirmity or illegality in the procedure adopted by the Full Court w
respect of the petitioner for the year 1995.

The Delhi High Court has dismissed a petition filed by a retired judicial officer challenging the ‘C’ grade given t

7. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains
the on the job performance of the employees.
Another simple type of individual evaluation method is the checklist. A checklist repres
descriptive statements about the employee and his behavior. If the rater believes strongl
trait, he checks the item; otherwise, he leaves the item blank. A more recent variation o
this, the value of each question may be weighted equally or certain questions may be weig
some of the sample questions in the checklist.
Is the employee really interested in the task assigned? Yes/No
 Is he respected by his colleagues (co-workers) Yes/No
Does he give respect to his superiors? Yes/No
Does he follow instructions properly? Yes/No
Does he make mistakes frequently? Yes/No

8. GRAPHIC RATING SCALE

Example of Graphic Rating Scales Method

Performance Trait Excellent Good Average Fair Poor

Attitude 5 4 3 2 1
Knowledge of Work 5 4 3 2 1
Managerial Skills 5 4 3 2 1
Team Work 5 4 3 2 1
Honesty 5 4 3 2 1
Regularity 5 4 3 2 1
Accountability 5 4 3 2 1
Interpersonal 5 4 3 2 1
relationships
Creativity 5 4 3 2 1
Discipline 5 4 3 2 1

This is the very popular, traditional method of performance appraisal. Under this method, core traits of employee
Knowledge of Work, Managerial Skills, Team Work, Honesty, Regularity, Accountability, Interpersonal relation
with with numerical scale to tabulate the scores gained by appraisee (employee) in performance assessment rela
determine the best performer. Appraiser ticks rating of particular trait depending upon his endeavor in his job. S
performance levels and endeavor in his job.

This method is popular because it is simple and does not require any writing ability. The method is easy to under
necessary for decision on salary increases, promotion, etc.

Companies like DELL, Maruthi Suzuki India Ltd and airtel are using this graphic rating scale method to appra
decisions regarding the matters concerned to employees

9. FORCED DISTRIBUTION
The system is 17 to 18 years old, and most big organisations started waking up to this form of performance appra
representation of the fact that everybody's performance is not the same. Some employees will be outstanding, som
Irrespective of whether or not the bell curve is the most appropriate representation of performance or human beha
especially in services-driven sectors, which have large workforces.

The system requires the managers to evaluate each individual, and rank them typically into one of three categorie
relatively widely-used, but remains somewhat controversial due to the competition it creates, and also the reality
categories and might end up in a category that does not reflect their true performance. One of the first companies

In India, big Indian employers including Infosys, Wipro, ICICI Bank and Aditya Birla Group evaluate lakhs of e
Back home, big Indian employers including InfosysBSE -0.47 %, WiproBSE 0.63 %, ICICI BankBSE 0.33 % an
basis of this system.

utm_

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle,

The top-ranked employees are considered “high-potential” employees and are often targeted for a more rapid car

In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary p

Facts: many companies have been discarding this age-old appraisal system since it has got few drawbacks like la
of employee, some people believe that this method treats employees as machines and some feel that this system d
have dropped this method of addressing system are Microsoft, Google and Adobe.

Application of Forced Ranking

General Electric Company, Ford Motor, Wipro, HCL, Sun Microsystems, Cisco Systems, EDS, Enron and a host of other U.S. corporat

Report Abuse|Powered By Google Sites

o
 Search this site

 Home Page
 Job Sites
 HRM PPTs
 Managerial Economics
 HRM Books
 Feedback
 Recent Site Activity
Traditional methods of Performance Appraisal - Rating Scales Method - Confidential report system

Performance Appraisal

 Performance Appraisal
 History & origin of Performance Appraisal
 Objectives of Performance Appraisal
 Benefits of Performance Appraisal
 Performance Appraisal Process
 Performance Appraisal Rating Factors
o Traditional methods of Performance Appraisal
o Modern Methods of Performance Appraisal
o 360 Degrees Performance Appraisal
 How to get best performance appraisal from your boss?
 Performance Appraisal at Pepsi-Cola International
 Potential Appraisal
 Performance Counseling

1.Rating Scales Method

Rating Scales Method is commonly used method for assessing the performance of the employees and well-know
Many corporations and companies example in the country India, telecommunications company likely airtel and
for evaluating the employees and subsequently take decisions on concerned employee.

Depending upon the job of employee under this method of appraisal traits like attitude, performance, regularity, a
10. 1 indicates negative feedback and 10 indicates positive feedback as shown below.

Attitude of employee towards his superiors, colleagues and customers

1 2 3 4 5 6 7 8 9 10
Extremely Excellent
poor

Regularity in the job

1 2 3 4 5 6 7 8 9 10
Extremely outstanding
poor

Under this method of performance appraisal, employee may be assessed by his superiors, colleagues, subordinate
of the company or job which is added where the employee. Appraiser is a person who appraises employee will gi
number basing on his observation and satisfaction. ultimately all numbers chosen or marked will be added to dete
scored more points will be treated as top performer following descending scored employees will be treated as lo
non-performers.

2. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves a description of the performance
evaluation of the performance of any individual based on the facts and often includes examples and evidences to
the inseparability of the bias of the evaluator.

Under this method, the rater is asked to express the strong as well as weak points of the employee’s behavior. Th
graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rat
considers the following factors:

 Job knowledge and potential of the employee;

 Employee’s understanding of the company’s programmes, policies, objectives, etc.;
 The employee’s relations with co-workers and superiors;

How is technology helping transform performance appraisal and ma

The most common cliché is “performance appraisal is dead“. What it means is the annual performance
regular, realtime, anecdotal and casual feedback. Just as young people do not write e-mails anymore th
performance appraisal at the end of the year. Companies are moving to real-time performance appraisa
realtime. And technology plays the most crucial role in providing the platform to have fast and quick a

 The employee’s general planning, organizing and controlling ability;

  The attitudes and perceptions of the employee, in general.

Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e., the essay
also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitatio

 It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will b
 Some evaluators may be poor in writing essays on employee performance. Others may be superficial in e
the actual performance of the employee. It is very difficult to find effective writers nowadays.
 The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly
worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point o
costly.

3. RANKING METHOD
How do we use the ranking method? Under the ranking method, the manager com-pares an employee to other
offshoot of ranking is the forced distribution method, which is similar to grading on a curve. Predetermined perce
categories, for example, excellent,above average, average, below average, and poor,. The employees ranked in th
those not at the top tend to have the reward withheld, and those at the bottom sometimes get punished. In Self-As
performance of your peers.

Why and when do we use the ranking method? Managers have to make evaluative decisions, such as who is th
who gets laid off. So when we have to make evaluative decisions, we generally have to use ranking. However, o
methods and forms. Ranking can also be used for developmental purposes by letting employees know where they
to improve performance. For example, when one of the authors passes back exams, he places the grade distributi
grades—but it lets students know where they stand, and he does it to motivate improvement.

4. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with al
on the basis of the overall comparisons, the employees are given the final rankings.

5. CRITICAL INCIDENTS METHODS

This technique of performance appraisal was developed by Flanagan and Burns.
The manager prepares lists of statements of very effective and ineffective behavior of an employee. These critica
behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically recor
rating period, these recorded critical incidents are used in the evaluation of the workers’ performance. An examp
following:

July 20 – The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solv

On the other hand the bad critical incident may appear as under:
July 20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to
stubborn and uninterested in work.

This method provides an objective basis for conducting a thorough discussion of an employee’s performance. T
much emphasis). This method suffers however from the following limitations:
 Negative incidents may be more noticeable than positive incidents.
 The supervisors have a tendency to unload a series of complaints about incidents during an annual perform
 It results in very close supervision which may not be liked by the employee.
 The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to d

6. CONFIDENTIAL REPORT SYSTEM

Confidential report system is well known method of performance appraisal system mostly being used by the the
method of appraising system, subordinate is observed by his superiors regarding his performance in the job and
report on his performance, mainly on his behaviour in the organisation and conduct and remarks if any. confiden
to anyone and finally confidential reports will be forwarded to the top management officials for taking decision a
Confidential reports are the main criteria for promoting or transferringof any employee mainly in the governm
police Department and other government departments in the India are using confidential reports method as a tool
connecting to him.

Procedure of confidential report system

The superiors who appraises their subordinates performance, behaviour and other key issues will be kept in the fo
report. Confidential report should not be sent openly on a paper, it must be kept in a sealed cover to send it to de
allowed to open the sealed covers which consists of confidential reports. Confidential reports shall not be hand

Key factors assessed in Confidential Report writing

 Character and conduct of an employee
 Absenteeism of an employee
 Knowledge of an employee
 His nature and quality of work
 Punctuality of employee
 Unauthorised absenteeism or leave without permission
 Behaviour of an employee with colleagues, superiors and with public
 Ability of supervision and controlling
 His/her integrity and honesty
 If any complaints against employee

Concern High Court is empowered for evaluating performance of a judicial

Constitution]

to him in his Annual Confidential Report (ACR).

7. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains
the on the job performance of the employees.
Another simple type of individual evaluation method is the checklist. A checklist repres
descriptive statements about the employee and his behavior. If the rater believes strongl
trait, he checks the item; otherwise, he leaves the item blank. A more recent variation o
this, the value of each question may be weighted equally or certain questions may be weig
some of the sample questions in the checklist.
Is the employee really interested in the task assigned? Yes/No
Is he respected by his colleagues (co-workers) Yes/No
Does he give respect to his superiors? Yes/No
Does he follow instructions properly? Yes/No
Does he make mistakes frequently? Yes/No

8. GRAPHIC RATING SCALE

Example of Graphic Rating Scales Method

Performance Trait Excellent Good Average Fair Poor

Attitude 5 4 3 2 1
Knowledge of Work 5 4 3 2 1
Managerial Skills 5 4 3 2 1
Team Work 5 4 3 2 1
Honesty 5 4 3 2 1
Regularity 5 4 3 2 1
Accountability 5 4 3 2 1
Interpersonal 5 4 3 2 1
relationships
Creativity 5 4 3 2 1
Discipline 5 4 3 2 1

This is the very popular, traditional method of performance appraisal. Under this method, core traits of employee
Knowledge of Work, Managerial Skills, Team Work, Honesty, Regularity, Accountability, Interpersonal relation
with with numerical scale to tabulate the scores gained by appraisee (employee) in performance assessment rela
determine the best performer. Appraiser ticks rating of particular trait depending upon his endeavor in his job. S
performance levels and endeavor in his job.

This method is popular because it is simple and does not require any writing ability. The method is easy to under
necessary for decision on salary increases, promotion, etc.

Companies like DELL, Maruthi Suzuki India Ltd and airtel are using this graphic rating scale method to appra
decisions regarding the matters concerned to employees

9. FORCED DISTRIBUTION
The system is 17 to 18 years old, and most big organisations started waking up to this form of performance appra
representation of the fact that everybody's performance is not the same. Some employees will be outstanding, som
Irrespective of whether or not the bell curve is the most appropriate representation of performance or human beha
especially in services-driven sectors, which have large workforces.

The system requires the managers to evaluate each individual, and rank them typically into one of three categorie
relatively widely-used, but remains somewhat controversial due to the competition it creates, and also the reality
categories and might end up in a category that does not reflect their true performance. One of the first companies

In India, big Indian employers including Infosys, Wipro, ICICI Bank and Aditya Birla Group evaluate lakhs of e
Back home, big Indian employers including InfosysBSE -0.47 %, WiproBSE 0.63 %, ICICI BankBSE 0.33 % an
basis of this system.

utm_

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle,

The top-ranked employees are considered “high-potential” employees and are often targeted for a more rapid car

In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary p

Facts: many companies have been discarding this age-old appraisal system since it has got few drawbacks like la
of employee, some people believe that this method treats employees as machines and some feel that this system d
have dropped this method of addressing system are Microsoft, Google and Adobe.