The document provides comprehensive information on performance appraisal, detailing its definitions, methods, and the importance of line managers in the process. It outlines various performance appraisal methods such as ranking, rating scale, checklist, critical incidents, essay, and behaviorally anchored rating scales, along with their advantages and disadvantages. Additional resources and topics related to performance appraisal are also mentioned for further reference.

1. Performance appraisal
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I. Contents of getting performance appraisal
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What is performance appraisal?
Performance appraisal (or performance review) is a process for individual employees and those
concerned with their performance, typically line managers, to engage in a dialogue about their
performance and development and the support they need in their role. It is used to both assess
recent performance and focus on future objectives, opportunities and resources needed.
Relationship with performance management
While performance appraisal is an important part of performance management, in itself it is not
performance management: rather, it is one of a range of tools that can be used to manage
performance.
Performance management is a holistic process bringing together many activities that collectively
contribute to the effective management of individuals and teams in order to achieve high levels
of organisational performance. The process is strategic, in that it is about broader issues and
long-term goals, and integrated in that it links various aspects of the business, people
management, individuals and teams.
Role of line managers

2. Because performance appraisal is usually carried out by line managers rather than HR
professionals, it is important that they understand their role in managing performance and how
performance appraisal contributes to the overall aims of performance management.
CIPD research stresses the importance of a positive relationship between individuals and line
managers. Carried out sensitively, the performance appraisal is an important vehicle in
developing and maintaining this relationship.
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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
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

3. 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.

5. III. Other topics related to Performance appraisal (pdf download)
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