The document provides comprehensive information on performance appraisal parameters, detailing methods, tips, forms, and key phrases to evaluate employee performance effectively. It discusses various aspects such as goal measurement, teamwork, job skills, communication, decision-making, and work habits, offering multiple appraisal methods like ranking, rating scales, checklists, and critical incidents. Additionally, it includes links to various resources for further assistance in conducting performance appraisals.

1. Performance appraisal parameters
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I. Contents of getting performance appraisal parameters
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When you conduct an employee appraisal, you're evaluating that staffer’s performance, attitude
and achievements. The more detailed feedback you can give the employee, the greater potential
for improving performance, maintaining existing high standards and motivating the staffer to be
a contributing member of your team.
Meeting Goals
Measure whether employees met pre-established goals during the assessment period. For
example, an employee might have specific goals such as completing an annual report,
developing a new filing system or learning a new software program. You also may have goals
that are more subjective in nature, such as improving attitude or developing more effective time
management skills.
Teamwork
Teamwork is an essential component of many positions. Rate your staffer on his participation in
group initiatives. You might find it worthwhile to seek feedback from colleagues when making
this assessment, to learn about co-worker perceptions about contributions, sharing the work load,
contributing ideas and meeting established performance parameters.
Job Skills
There are certain job skills necessary for the effective completion of job tasks and
responsibilities. While this will vary from position to position, judge whether your employee is

2. meeting standards in key areas. For example, if you’re evaluating a customer service agent, you
might rate key performance indicators such as resolved customer complaints, telephone skills or
average number of calls handled in an hour.
Communication
Communication is an essential part of every job and should be a key performance indicator in
your employee evaluations. Rate how well your staffer communicates with management,
customers and colleagues. This can be defined in terms of interpersonal communication skills,
written and verbal skills.
Decision Making
If you’re assessing an employee in a decision-making position, rank how he fares in this area by
evaluating major or difficult decisions that have been made during the previous assessment
period. Consider whether an employee regularly approaches management or colleagues for
assistance in choosing a path to pursue, or if she is confident and makes well-educated decisions
on her own.
Work Habits
Assess the staffer’s work habits, including time management, meeting deadlines, arriving for
work on time and being reliable. This will help you evaluate not only whether the staffer
understands the responsibilities of his job, but carries them out in an efficient and consistent way
on a daily basis.
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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.

3. 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
3. Checklist method

4. 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.
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