The document provides an overview of performance appraisals, including methods, preparation tips, and criteria for assessing employee performance. It emphasizes the importance of honest evaluations that differentiate between strong and weak performers, as well as offering opportunities for professional growth. Various appraisal methods are discussed, including ranking, rating scale, checklist, critical incidents, essay method, and behaviorally anchored rating scales, each with its advantages and limitations.

1. Example performance appraisal
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I. Contents of getting example performance appraisal
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Just as every kid wants to make the soccer team, every employee wants to receive a stellar
performance appraisal. But if you rate every member of your team as a water-walker, managers
who use the appraisal to decide promotions, raises or high-profile assignments won't be able to
distinguish your truly gifted subordinates from the mediocre or troublesome ones. A useful
performance appraisal is an honest assessment of an employee's strengths, weaknesses and
capabilities.
Job Description
Unlike you, most readers of the appraisal won't understand the full scope of your employee's
duties. Start the appraisal with a background paragraph that outlines the employee's daily duties
and any extra responsibilities, such as serving as back-up for another employee, overseeing a
project or participating in a task force. Describe the complexity of the work and state whether the
employee does it under close supervision, with minimal guidance or with complete
independence.
Work Performance
Don't overwhelm your audience with a lengthy narrative. Create a separate section for each duty
the employee performs and include a rating for each one. You can use a numerical rating –
usually on a scale of 1 through 5 – or statements such as “building basic skills,” “fully
competent” and “excels”. Avoid giving the employee a perfect score in every area (unless it's
truly warranted) because it will detract from the credibility of the review. Include a short
paragraph to explain the rating, and provide specific examples of the employee's achievements.

2. Social Skills
Performing one's duties is only part of the job. Some employees are technical whizzes but they
can't get along with their co-workers and they drag down the team's performance. To be fair and
balanced, you also must rate how well the employee interacts with team members, people in
other offices and customers. Provide an example or two to support the rating you give the
employee in this area.
Further Skill-Building
Most managers don't like to include “Areas for Improvement” in an appraisal because it sounds
like criticism. It is important, however, to give the employee a path toward professional growth
and you can do this in a positive light by using the heading “Further Skill-Building.” Use this
section to explain what the employee must do to reach the next level. This may be training,
increased responsibility or a greater level of self-dependence. This portion of the appraisal serves
as a work plan against which you can measure the employee's performance in the next rating
period.
Employee Comments
Present the appraisal to your employee as a draft that can be changed if appropriate. For
example, the employee may remember an achievement that you left out. If, however, you believe
that a criticism or a lower rating really is warranted, stick to your guns, but include a section for
the employee to add comments. This is where she can state any disagreement with the rating or
explain underlying reasons for a less-than-stellar performance. It allows the employee to feel that
she got to state her case without compromising the integrity of your assessment.
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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

3. 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

4. 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

5. 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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