The document discusses various methods and tips for performance development appraisal, emphasizing the complexity and evolving nature of employee evaluations. It outlines several appraisal methods including ranking, rating scales, checklist, critical incidents, essay, and behaviorally anchored rating scales, along with their advantages and disadvantages. Additionally, it provides links to further resources and forms related to performance appraisal.

1. Performance development appraisal
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I. Contents of getting performance development appraisal
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Employee appraisal methods are a tricky and complex aspect of HR (Human Resources) and
business management. Many methods can be used, but with the ever changing nature of work,
and with significant differences between the Baby Boomer generation and Gen Y / Z, few
methods work well.
Some experts argue the Employee Performance Review should be abolished altogether.
In this article, we’ll outline four methods that can be considered templates to which the employer
can refine for maximum fairness and accuracy.
Also consider doing performance appraisals that float up the chain of command as well as down.
This means that employees and junior managers get the opportunity to evaluate their bosses as
much as the bosses evaluate them.
Evaluating the Evaluation
Keeping in mind people are a company’s greatest asset and resource, the purpose of doing an
evaluation at all is to 1) provide reliable information to employers as to the performance of
employees and 2) give employees an insight as to how they are perceived in the company. The
nature of the scales, measures, and variables are the basis of the different methods.

2. The Unstructured Format
The unstructured format is a common method where evaluators use an essay or short answer to
grade employees. The benefit here is that any and all variables are used, from the most
quantitative to the most informal. This is similar to the “essay” format, where appraisals are done
through a free form writing of an essay which tries to capture all aspects of employee
performance.
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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 development appraisal (pdf
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