The document discusses informal performance appraisal methods, emphasizing the benefits of informal feedback in improving employee morale and communication. It outlines various techniques such as scheduled one-on-one meetings, informal appraisal cards, and recognition programs, along with specific appraisal methods like ranking, rating scales, and the critical incidents method. The content serves as a guide for organizations transitioning from formal performance evaluations to more casual, ongoing assessments.

1. Informal performance appraisal
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I. Contents of getting informal performance appraisal
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Companies are replacing formal workplace evaluation processes with more informal appraisals
as part of an effort to get managers to communicate more efficiently with employees when they
do good work and when they need correction. Informal feedback can help boost employee
morale, confidence, satisfaction and results.
Scheduled Monthly Meetings
Scheduled monthly meetings have the benefits of planned formal appraisals but with more
consistency. In this one-on-one meeting between a manager and employee, areas of review
commonly include job knowledge, productivity, customer service and the employee's overall
performance quality. Along with offering an assessment, the manager asks the employee if he
has any questions or concerns. This meeting also provides an opportunity for coaching or re-
training on skills. In general, the objective is to convey appreciation to the worker for his efforts.
The One Minute Manager
Ken Blanchard and Spencer Johnson were ahead of their time introducing their informal
appraisal system in their 1982 book "The One Minute Manager." The system centers on the one-
minute praising and the one-minute reprimand. The message is that managers need to take every
opportunity possible to spend a minute in praising good work. In the same way, immediate,
concise feedback on mistakes or poor decisions helps emphasize behavioral correction. The
premise is that prompt, efficient communication helps prevent a buildup of negative feelings on
the part of the supervisor and the employee's feelings of uncertainty.
Appraisal Cards

2. Some companies that eliminate or soften the use of formal appraisals use informal appraisal
cards to remind managers of the value of ongoing communication. The cards usually list key
criteria of employee work -- for instance, a retail manager may have a card that lists service,
sales, product knowledge, teamwork and extra effort. When a manager spots an employee
engaging in positive work, or making poor decisions, she quickly pulls him aside and uses the
card to point out the importance of the behavior and why it was effective or needs correction.
Informal Recognition
Some employers use informal recognition programs as a way to offer consistent, informal
feedback on work. Some companies schedule monthly or quarterly informal recognition
gatherings and give awards, gift certificates and other prizes to employees who accomplish goals
or receive praise from customers or business partners. In other workplaces, managers
immediately announce that an employee has accomplished something of significance and give
him a certificate or award. Spontaneous raises or bonuses are other approaches to information
recognition appraisals.
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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
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

3. 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. Critical Incidents Method

4. 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
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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