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How to do performance appraisal
1. How to do performance appraisal
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I. Contents of getting how to do performance appraisal
==================
With summer upon us and the year half over, many managers and employees are engaging in
that oft-criticized, much maligned, but still necessary exercise: performance evaluation.
Yes, formal evaluations generally happen at the end of the calendar year, but many companies
require their managers to conduct midterm evaluations as well, to help avoid year-end surprises.
Be it at mid-year or year end, a common component of these evaluations is the employee’s self-
assessment. In some cases, these self-assessments just amount to the employee submitting a list
of accomplishments to his or her manager. Increasingly, though, they’re institutionalized as part
of a company’s formal performance evaluation document. For every performance criterion,
there’s space for the employee’s rating and comments as well as for the manager’s.
In theory, self-assessments serve a useful purpose. They give employees an opportunity to
objectively reflect on their performance, to consider what they’ve done well and where they’ve
fallen short, and then to share their perspective with their manager. And, in theory, the manager
captures the employee’s perspective as one of many data points that shape the ultimate
evaluation.
But it’s not like that in reality. The performance evaluation process is actually among the most
hypocritical management activities there are. Chief executives and the people around them
publicly proclaim the importance of performance assessment and development, but all too often
2. they fail to practice what they preach. They have to be strong-armed by their human resources
departments to actually prepare their reviews for their own direct reports.
Further down in the organization, line managers are implored by those same top executives to
conduct thoughtful performance reviews for their own staff–and they find themselves short on
time and searching for shortcuts.
That’s where self-assessments cease to be just a data point and instead practically become the
review itself. It works like this: A manager takes the employee’s self-assessment, adds some
superficial comments or check marks and assigns a final performance rating. Presto! A
performance review that satisfies human resources, with a bare minimum of the manager’s
effort.
And people wonder why employees think evaluations are ridiculous.
When managers commandeer their employees’ self-assessments and turn them, with little or no
modification, into their own final reviews, they do a great disservice to both those employees and
the company. That’s because those self-assessments are missing key sources of constructive
feedback. No matter how objective or perceptive an employee is, his self-assessment is unlikely
to capture the diversity of perspectives that the manager should be compiling from customers,
colleagues and, where applicable, subordinates–not to mention the manager’s own notes and
recollections.
The employee is robbed of what could have been game-changing feedback, hindering his own
career ambitions. And the company is deprived of a genuine performance evaluation and
improvement mechanism, thwarting its efforts to cultivate and retain talent.
Layer on top of all that the employee’s ire at a performance review process gone dreadfully
awry, and you have a recipe for a workforce that grows increasingly distrustful of its superiors
and skeptical of those superiors’ leadership capacity. Moreover if you think that attitude will go
unnoticed by your customers, you’re in for a surprise.
The good news is that there are straightforward moves business leaders can make to avoid this
dynamic, with their own direct reports and with their whole organizations:
–Make a genuine effort to write evaluations from scratch. Take the time to reflect on each
employee’s performance and thoughtfully compose constructive comments for every review.
Even if the employee doesn’t agree with all you say, he will appreciate and respect you for
writing your own reviews instead of merely parroting his self-assessment. If you lead a large
3. organization, doing this for your own direct reports will send an unmistakable signal about how
you expect your managers to prepare reviews for their staffs.
–Keep a diary. One of the reasons managers look for shortcuts to writing reviews is because they
struggle to think of something to write. With multiple direct reports and six to 12 months of
activity to keep track of for each, it’s no wonder that even the most seasoned leaders resist the
exercise. To make it easier, keep a running diary for all your direct reports, a cumulative
accounting of specific behaviors and accomplishments that illustrate performance strengths and
weaknesses. Then when it comes time to write the reviews from scratch, you’ll already have a
robust set of observations and commentary to pull from.
–Carefully manage spans of control. Even managers with the most detailed diaries and strongest
passion for employee development will look for shortcuts if there simply isn’t time to craft a
detailed review. This can happen when they’re given a ridiculously large number of employees
to supervise. You can’t expect someone who has a small army of direct reports to author a
thorough evaluation on each and every one of them twice a year. Companies like to use bloated
spans of control to help cut expenses–but they fail to fully comprehend the effect on both leaders
and staff.
–Inspect what you expect. What gets measured gets managed, but rarely are good measures put
in place to track employee development. Sure, the human resources department may request a
copy of all performance reviews, just to make sure they’re actually done. That doesn’t gauge the
actual quality of the reviews. If the exercise is truly important to an organization, then executives
should periodically evaluate the evaluations. Simply by looking them over you can see if the
process is failing or being evaded and then take action to correct it.
No manager in her right mind would ever knowingly delegate a performance review–and no
executive would ever tolerate such behavior. But it effectively happens all the time when
managers commandeer their employees’ self-assessments because they’re unable or unwilling to
craft comprehensive evaluations themselves.
The stakes are high. If your employees think you and your company aren’t making a genuine
effort to evaluate and improve their performance, their morale and their engagement in the
company’s mission will suffer. That will inevitably hurt them and, ultimately, the customers they
serve.
When it comes to composing one’s own performance review, that’s a task that shouldn’t be in
any employee’s job description.
==================
4. 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
5. 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
6. 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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