This document discusses performance appraisal in human resource management. It provides an overview of performance appraisal, including definitions and purposes. Several common methods for conducting performance appraisals are described, such as ranking, rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales. The document also lists additional topics and resources related to performance appraisal.

1. Performance appraisal in hrm
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I. Contents of getting performance appraisal in hrm
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Every business has one goal: to grow and achieve success. On paper, the plan is easy: start out,
contact customers, supply customers, increase customer base and become successful. However,
while these steps certainly seem clear-cut and foolproof when you’re starting out, there is more
to achieving success in business than simply planning well. No matter how big you dream or
how well you plan, things often go wrong and unpredictable elements might turn up out of the
blue and throw your carefully planned equations right off-track. So, what is it that drives a
successful firm and separates it from the mediocre players? The answer is simple: a power-
packed performance rate.
Performance management is integral to the success of any business or enterprise. Performance
management is indispensable when it comes to tracking, sustaining and boosting the company’s
performance and staying a mile ahead of the competition. Performance management techniques
can be understood to be industry specific practices that enable a company to clearly formulate
their goal plans and apply the same to achieve greater results each time.
Performance management solutions are essentially integrated processes that enable a company to
execute carefully thought of decisions and streamline business processes and employee activity
in a manner that is guaranteed to produce results.
Performance management, whatever form it might be in, ranging from sales performance
management, workforce performance management or employee performance management, is
best affected with reliable performance management tools. Performance management software

2. programs are also a very popular option. Technology is making performance management more
and more advanced by the day. The performance management tools you choose or the
performance management software you purchase can make or break your company.
The typical performance management model revolves around structuring objectives for the
company, defining specific targets and setting up milestones and measuring units by which to
keep a track of the company’s performance on the whole and an employee’s performance at the
individual level. The purpose of tracking the performance is to be able to measure it in order to
appraise the recent trends of how the company and its employees have been performing: this
knowledge is further used as a base to devise new ways in which the company might accomplish
better results in future.
Performance monitoring, as you can probably surmise by now, is the most crucial aspect of
performance management. All business intelligence procedures and strategic planning, along
with analytics, financial reporting and future decision making is done on the basis of the data that
is gathered during the performance monitoring and then observed to appraise the state of the
company’s growth curve.
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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

3. 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
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. 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
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 in hrm (pdf download)
• Top 28 performance appraisal forms
• performance appraisal comments
• 11 performance appraisal methods
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