This document provides an overview of performance appraisal reviews, including methods, tips, and forms for effectively evaluating employee performance. It emphasizes the importance of balanced and constructive feedback, setting performance goals, and maintaining ongoing communication throughout the year. Various appraisal methods like ranking, rating scales, and critical incidents are discussed, alongside advantages and disadvantages of each approach.

1. Performance appraisal review
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I. Contents of getting performance appraisal review
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As a manager, you need to give your employees constructive feedback to make sure the business
is operating at its peak. Annual or semiannual performance reviews give you the opportunity to
praise employees for what they've done well, correct what they're doing wrong, and discuss your
vision for their growth and future at the company.
"The ideal outcome for a performance appraisal is for managers and employees to have
meaningful, reflective conversations together," said Julie Rieken, vice president of marketing
and customer experience at evaluation software company Trakstar. "It's a chance to document
the year's accomplishments, journal about accomplishments, understand expectations and
celebrate progress."
While face-to-face conversations and regular informal feedback should always be included in the
review process, the written review is an important tool to help your staff find out where they
stand. An employee can refer back to this document to make sure he or she is staying on track
between now and the next review period. For this reason, it's especially important to make sure
the reviews you hand your team members are thorough, well-written and easy to understand.
Business News Daily spoke with human resources administrators, managers and executives, and
based on their responses, we've compiled a list of the best tips for writing an effective
performance review. [Employee Performance Reviews: Tips for Bosses]
Make it comprehensive

2. A good written performance review covers all the bases of an employee's work. It shouldn't be
all positive or all negative — a healthy balance of both is necessary to help your team members
evolve in their roles.
"[In] a formal evaluation ... the feedback should be relevant and specific, with examples for both
the good and bad points," said Don McIver, COO of 5W Public Relations. "Employee strengths
should be acknowledged, and corrective action needed in weak performance areas should be
identified."
In addition to highlighting strengths and weaknesses, a review should establish performance
goals for the upcoming year, and cover the employee's role as part of a collaborative team. Bill
Peppler, managing partner of staffing firm Kavaliro, also advised providing employees with a
formal objective of the evaluation beforehand.
"A good manager will explain the purpose of the review, what they will go over and how
frequently performance reviews are given," Peppler said. "This manages employee expectations
and helps everyone involved be more fully prepared for the meeting."
Recap regular, informal feedback
Formal review periods shouldn't be the only times employees receive feedback about their
performance. There's no need to call a meeting for every individual issue that comes up, but there
also shouldn't be any surprises when workers read their reviews from the boss.
"Employee feedback [should] be given throughout the year as performance issues, good or bad,
arise," McIver said. "A formal evaluation is ideally a recap of things that have been addressed
during the year."
When there is a problem with an employee's habits or actions, address it as soon as possible after
the incident occurs to avoid bringing that tension into the evaluation. If an employee's behavior
(positive or negative) doesn't warrant immediate feedback, make a note of it and use it as a
reference point during a formal or informal performance discussion, Rieken advised.
Give honest, constructive criticism
It's never easy to tell an employee what he or she needs to do to improve, but giving constructive
criticism about your workers' performance is an important part of the review process. Be as clear
and direct as possible about any shortcomings and mistakes, but also take the time to provide
solutions to those problems.

3. "Fully explain what the issue is, and then expand on options for improvement," Peppler
suggested. "If you see a problem in an employee's work, then he or she should have a solution to
how it can be fixed. Also, let employees know where this improvement can take them, such as a
promotion to a management role."
If there have been any serious performance issues, Reiken said that the best approach is to ask
the employee open-ended questions, such as "How did you see it?", "What would you suggest?"
or "Did you get the result you wanted?"
"Most employees work hard and [want to] do the right thing," Reiken told Business News Daily.
"Asking open-ended questions can start an honest conversation that allows both sides see each
other's perspective and realize why the other reacted in a certain way. Questions can create
positive discourse when two sides see things differently."
Encourage discussion about the review
Most managers agree that it's frustrating when an employee has nothing to say in response to his
or her performance evaluation. You don't want your staff to fight you on every point, but you
also don't want to meet with silence if you have suggestions. Push your employees to give you
feedback on the issues you raised. The written review should be a brief but direct overview of
discussion points, making for a more nuanced face-to-face conversation; this requires employee
feedback.
If the conversation starts to get heated and you want to avoid saying something that you might
regret, put the dialogue on hold. You can continue a more serious discussion later via email or in
another meeting, after the employee has had a chance to cool down.
End on a positive note
Always end performance reviews on a positive note. Encouraging your employees and letting
them know you appreciate what they do for the company will give an added boost to a primarily
good review, or lift your employee's spirits after a somewhat negative evaluation. Positive
phraseology and reinforcement can go a long way in giving workers the confidence and drive
they need to perform their jobs even better.
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III. Performance appraisal methods

4. 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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