In this file, you can ref useful information about how to calculate performance appraisal such as how to calculate performance appraisal methods, how to calculate performance appraisal tips

1. How to calculateperformance appraisal
In this file, you can ref useful information about how to calculate performance appraisal such as
how to calculate performance appraisal methods, how to calculate performance appraisal tips,
how to calculate performance appraisal forms, how to calculate performance appraisal phrases
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• 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 how to calculate performance appraisal
==================
Evaluations provide structured feedback to employees about what they're doing right and what
could be improved. A staple of corporate human-resource practice, these reviews not only help
employees and managers set one-on-one expectations about individual performance, but they
also often contribute to consideration for raises and promotions. For that reason, employers
should take care to calculate scores correctly and fairly to avoid employee complaints or even
lawsuits.
Step 1
Implement a concise, objective policy to govern the evaluation process. Although there's no one
right way to evaluate employees, it's important that all employees in a given department or
company are held to the same criteria, with the same rankings. If employees are held to a 50-50
split between job performance as tied to a job description and self-selected annual goals, make
sure that evaluators don't change the ratio for favored or disfavored employees.
Step 2
Develop an evaluation tool that relates to each employee's specific job. For each part of each job
description, identify what constitutes adequate and superior performance. For example, a
cashier's job description includes cash control; an evaluation tool should set guidelines for
weekly over/short drawer totals that are objective and applicable to all cashiers. Cashiers who
consistently balance to within $10 may be considered mid-range performers, whereas those who
balance to within $2 may be rated as excellent performers for that criterion. For job requirements

2. that are difficult to categorize, such as "provide superior customer service," outline the types of
behaviors that warrant specific scores.
Step 3
Set annual goals, if desired, with employees, but make sure that each goal contains its own
measurement system. For example, an employee tasked with deploying a new computer system
may get an average score for delivering the project on time and on budget, but a superior score
for delivering more than 15 days early or 15 percent under budget.
Step 4
Use a numbering system that's consistently applied against all employees for each aspect of
performance subject to evaluation. If some parts of a score receive more weight than others,
ensure that this scale applies to all similarly situated employees.
Step 5
Calculate a final score. Some employers choose to present average scores; if an employee is
evaluated on 20 criteria on a 5-point scale, the average score is the final earned points divided by
20. Other employers simply add all earned points, with each employee in the company rated
against the same upper limit -- e.g., a maximum score of 100 on a 20-item, 5-point evaluation
system.
Step 6
Share the employee's scores during a structured performance review meeting. If necessary, set
descriptive tiers to summarize overall performance. For example, on a 100-point system, a score
of 95 to 100 might be called "superior" and a score of 85 to 94 may "exceed expectations."
==================
III. Performance appraisal methods

3. 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

4. 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

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.
III. Other topics related to How to calculate performance appraisal (pdf
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