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1. Effective performance appraisal
In this file, you can ref useful information about effective performance appraisal such as
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I. Contents of getting effective performance appraisal
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Performance appraisals are one of the most frequently criticized talent management practices,
with criticisms ranging from their being an enormous waste of time to their having a destructive
impact on the relationship between managers and their subordinates.
Recently, CEO took another look at whether organizations are doing performance appraisals and
how they are doing them. The bottom line? Every company surveyed has a performance
management system. Only six percent say that they are considering eliminating performance
appraisals for some or all of their employees. In short, the death of performance appraisals has
not occurred.
We also asked about the effectiveness of performance appraisals. Strongly related to the
effectiveness of the performance management system and the HR function's performance is the
practice of jointly setting performance goals. In addition, the most effective performance goals
are those that are driven by the business strategy. This is not surprising: In the absence of a close
tie to business strategy, individuals may develop skills and abilities that are not helpful in
achieving high organizational performance or fail to develop their skills at all.
The data also show that it is advantageous to hold a discussion of development separate from the
actual appraisal of the individual's performance. All too often appraisals contain some negative
feedback and it tends to dominate the discussion.

2. There are several managerial and leadership practices that determine the effectiveness of
performance management systems, including leadership by senior management, management
ownership, and checks and balances. Who owns and leads the system? According to the data,
line management has a greater ownership than the HR function in most organizations. It also
shows that this is very much a positive for the effectiveness of the system. Line management
ownership correlates highly with performance management effectiveness, while HR ownership
does not.
A key to successful performance management is the ownership and leadership of senior
management. When management owns the system instead of HR, and when senior leaders
support it, performance management systems are much more effective. When management puts
its metrics behind the behavior that it advocates, the appraisal process is much more likely to be
successful. The point here is that what gets measured for effectiveness gets done effectively. Our
study shows a significant decline from 2002 to 2012 in the degree to which senior management
took a leadership role with respect to performance management. This clearly is unacceptable. It
is hard to imagine any organization having an effective performance management system
without strong senior leadership.
Organizations should train both those who do appraisals as well as those who are appraised.
Appraisal discussions usually are uncomfortable for individuals to participate in and to conduct,
and in the absence of training, they lack an understanding of what is supposed to happen and
how the overall system works.
Audits should be done of how well the appraisal activities are carried out, so that their
effectiveness can be determined. Do they cover the right materials? Are they produced in a
timely manner?
Finally, our survey shows a decrease in the degree to which performance management is
integrated with other talent management practices and processes. Integration with the overall
human resources strategy is a critical enabler of not just the performance management processes,
but the overall talent management system in an organization.
What organizations need to do is create performance management systems that are integrated
with the other human resources management systems they have and the overall talent
management strategy of the organization. Indeed, they need to go beyond just integrating it with
the talent management practices of the organization; they need to make sure it is integrated with
the strategy of the organization. There has always been, and our data say there continues to be, a
strong correlation between the effectiveness of performance management systems and the degree
to which they are driven by the business strategy of an organization.

3. ==================
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

4. 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. 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.
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