This document discusses various methods for employee performance appraisal. It describes the critical incident method, which involves identifying and describing specific positive or negative work-related incidents. It notes that critical incidents provide more detailed feedback than rating systems. The document also outlines several other performance appraisal methods: the ranking method, rating scale method, checklist method, essay method, and behaviorally anchored rating scales. It provides advantages and disadvantages of each. Additional resources on performance appraisal topics are listed at the end.
1. Employee performance appraisal methods
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I. Contents of getting employee performance appraisal methods
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The critical incident method of performance appraisal involved identifying and describing
specific events (or incidents) where the employee did something really well or something that
needs improvement. It's a technique based on the description of the event, and does not rely on
the assignment of ratings or rankings, although it is occasionally coupled with a ratings type
system.
The use of critical incidents is more demanding of the manager since it requires more than
ticking off things on a form -- the manager must actually write things out. On the other hand
critical incidents can be exceedingly useful in helping employees improve since the information
in them is more detailed ans specific than in methods that involve rating employees.
Some managers encourage employees to record their own critical incidents (where the employee
excelled, situations that did not go well). That's an interesting variation that places more
responsibility with the employee, and also does not require the manager to have been present
when the incident occurred.
Generally, it's important that incidents be recorded AS THEY OCCUR, and not written at or
around the annual performance review. Delaying the recording of critical incident reports (either
good incidents or not so good) means a loss of detail and accuracy.
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2. III. Performance appraisal methods
1.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
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. 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.
ii. 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.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. 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 – Rater’s biases
3. 3. 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
4. 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.
5. Essay Method
4. 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.
6. 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.
III. Other topics related to Employee performance appraisal methods (pdf
download)
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