This document discusses performance appraisal ratings and methods. It provides information on different rating systems companies use to evaluate employee performance, including ranking methods, rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales. It also lists additional topics related to performance appraisal ratings and where to find more resources on forms, comments, examples, and other elements of the performance review process.

1. Performance appraisal rating
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I. Contents of getting performance appraisal rating
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Even though some major companies like Microsoft have decided to eliminate their stack ranking
systems, the controversial employee review process will never go away entirely.
Industries like defense and aerospace, for example, tend to value execution over creativity, so
need a way to measure and compare employees. Ranking workers on a bell curve that features a
set number of high, average, and poor performers meets that need.
But increasingly companies are moving in the opposite direction, and using an entirely ratings-
free system.
While it's still only a small fraction of businesses, around 6% according to Cliff Stevenson of
The Institute For Corporate Productivity, big names like Adobe, Expedia, and FedEx are among
the companies that no longer rank their employees. Instead, they focus on incremental or
divisional goals rather than on individual ones.
Advocates of stack ranking argue that such measures are required to spur internal competition
and weed out poor performers. However, companies that have stopped grading employees
altogether have seen positive results in employee engagement and no negative impact on any
performance metric, Stevenson's research found.

2. "The very concept of the performance review is very backwards-looking; it's 'What did you do
over the past year?'" Stevenson said. "Instead, they started looking more at development and
enabling employees for the coming year."
Feedback becomes continuous rather than being delivered a few times a year in an extremely
high-stress meeting.
"The concept is that you get your feedback not once a year or quarterly, but as things happen,"
Stevenson said. "As you finish a project, your manager has the discretion to come to you then
and talk to you about success or areas for development as they see fit."
It's a completely different, and arguably superior, way to manage people than rating and ranking
them.
The rigid, quarterly, numbers-focused stack ranking system came about as an effort to manage
large, distributed, and unwieldy workforces. But in an age when we have better data and a better
idea of what makes people tick, it's not necessary.
Especially for small businesses, where individual employees have an outsized impact on a
company's performance, touching base and rewarding employees as needed is a much better
option.
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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

3. 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. 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

5. 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 rating (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
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