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Performance appraisal benefits
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• performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal
I. Contents of getting performance appraisal benefits
==================
The performance appraisal is an essential part of the human resources department's contribution
to an organization. An effective appraisal may not only eliminate behavior and work-quality
problems, it can motivate an employee to contribute more. Often, a company will ask its
employees to perform "360-degree feedback" that assesses peers and subordinates as well as
supervisors and management. Regardless, the opportunity to receive -- and give -- constructive
criticism shouldn't be ignored.
Improving Communication
All too often, employees and managers don't get along and can't understand why. Problems that
stem from a lack of communication can sometimes be resolved with a performance appraisal. If
the appraisal is used as an opportunity to describe the criteria on which performance is judged --
using meaningful and relevant examples -- then the employee will walk away from the meeting
with a better understanding of how to best perform his job. For example, "John, when I say you
need to be more customer-focused, what I really want is to see you greet the customers with a
smile when they enter the store, and ask how you can help."
Providing a Career Path
The performance appraisal is the perfect opportunity to address long-term goals that may not be
on the everyday to-do list. Not only does this provide the employee with an opportunity to be of
greater use to an organization, the employee feels pleased and valued. Lighting the way toward a
successful career path inspires loyalty and stability and can improve the bottom line, especially
when the employee's first concern is the health of the business, and subsequently, her career.
Encouraging Good Work and Improvement
Celebrating a job well-done is the easy part of the performance appraisal. Noting areas of
improvement is not so easy. Nevertheless, no one is perfect, and the performance appraisal is an
ideal time to diplomatically highlight areas that need improvement. Even the most valuable
employee could benefit from additional training, while those who are on the cusp of dismissal
need the heads-up. Be specific by providing examples and clearly explain what needs to occur to
turn things around. Showing an employee that you care enough about them by taking the time to
work with them may make even the most hardened employee feel better.
Improving Decision-Making Ability
When a company has detailed information on employee performance, business decisions become
easier. Filling open positions with existing staff strengthens the organization and promotes
loyalty. Knowing which employees display what strengths improves the speed with which
projects can be assigned. Appraisals also provide a framework when making decisions about
compensation -- and layoffs. If the organization becomes the unfortunate party to a lawsuit, the
performance appraisal can refute or support claims. As a result, the effective use of performance
appraisals helps an organization operate efficiently and with focus.
==================
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. 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
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 Performance appraisal benefits (pdf download)
• Top 28 performance appraisal forms
• performance appraisal comments
• 11 performance appraisal methods
• 25 performance appraisal examples
• performance appraisal phrases
• performance appraisal process
• performance appraisal template
• performance appraisal system
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• performance appraisal questions
• performance appraisal techniques
• performance appraisal format
• performance appraisal templates
• performance appraisal questionnaire
• performance appraisal software
• performance appraisal tools
• performance appraisal interview
• performance appraisal phrases examples
• performance appraisal objectives
• performance appraisal policy
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Performance appraisal benefits

  • 1. Performance appraisal benefits In this file, you can ref useful information about performance appraisal benefits such as performance appraisal benefits methods, performance appraisal benefits tips, performance appraisal benefits forms, performance appraisal benefits phrases … If you need more assistant for performance appraisal benefits, please leave your comment at the end of file. Other useful material for you: • performanceappraisal123.com/1125-free-performance-review-phrases • performanceappraisal123.com/free-28-performance-appraisal-forms • performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal I. Contents of getting performance appraisal benefits ================== The performance appraisal is an essential part of the human resources department's contribution to an organization. An effective appraisal may not only eliminate behavior and work-quality problems, it can motivate an employee to contribute more. Often, a company will ask its employees to perform "360-degree feedback" that assesses peers and subordinates as well as supervisors and management. Regardless, the opportunity to receive -- and give -- constructive criticism shouldn't be ignored. Improving Communication All too often, employees and managers don't get along and can't understand why. Problems that stem from a lack of communication can sometimes be resolved with a performance appraisal. If the appraisal is used as an opportunity to describe the criteria on which performance is judged -- using meaningful and relevant examples -- then the employee will walk away from the meeting with a better understanding of how to best perform his job. For example, "John, when I say you need to be more customer-focused, what I really want is to see you greet the customers with a smile when they enter the store, and ask how you can help." Providing a Career Path The performance appraisal is the perfect opportunity to address long-term goals that may not be on the everyday to-do list. Not only does this provide the employee with an opportunity to be of greater use to an organization, the employee feels pleased and valued. Lighting the way toward a successful career path inspires loyalty and stability and can improve the bottom line, especially when the employee's first concern is the health of the business, and subsequently, her career.
  • 2. Encouraging Good Work and Improvement Celebrating a job well-done is the easy part of the performance appraisal. Noting areas of improvement is not so easy. Nevertheless, no one is perfect, and the performance appraisal is an ideal time to diplomatically highlight areas that need improvement. Even the most valuable employee could benefit from additional training, while those who are on the cusp of dismissal need the heads-up. Be specific by providing examples and clearly explain what needs to occur to turn things around. Showing an employee that you care enough about them by taking the time to work with them may make even the most hardened employee feel better. Improving Decision-Making Ability When a company has detailed information on employee performance, business decisions become easier. Filling open positions with existing staff strengthens the organization and promotes loyalty. Knowing which employees display what strengths improves the speed with which projects can be assigned. Appraisals also provide a framework when making decisions about compensation -- and layoffs. If the organization becomes the unfortunate party to a lawsuit, the performance appraisal can refute or support claims. As a result, the effective use of performance appraisals helps an organization operate efficiently and with focus. ================== 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
  • 3. 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. 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. 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 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.
  • 5. III. Other topics related to Performance appraisal benefits (pdf download) • Top 28 performance appraisal forms • performance appraisal comments • 11 performance appraisal methods • 25 performance appraisal examples • performance appraisal phrases • performance appraisal process • performance appraisal template • performance appraisal system • performance appraisal answers • performance appraisal questions • performance appraisal techniques • performance appraisal format • performance appraisal templates • performance appraisal questionnaire • performance appraisal software • performance appraisal tools • performance appraisal interview • performance appraisal phrases examples • performance appraisal objectives • performance appraisal policy • performance appraisal letter • performance appraisal types • performance appraisal quotes • performance appraisal articles