This document provides comprehensive information about performance management and appraisal, outlining various methods, tips, forms, and phrases related to the topic. It emphasizes the distinction between performance management, which encompasses a system to manage employee performance, and performance appraisal, a specific process within that system. Additionally, it lists several appraisal methods while detailing their advantages and limitations.

1. Performance management & appraisal
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I. Contents of getting performance management & appraisal
==================
Business owners not familiar with human resources development may sometimes confuse the
concepts of performance management and performance appraisal. A performance appraisal--
sometimes referred to as performance evaluation--is one of the processes in a performance
management system. You want to distinguish this step from the entire performance system, an
essential component to improving employee engagement, job satisfaction and productivity.
Step 1
Research the term "performance management system" to learn the components of an entire
process, as opposed to the steps within that process. A performance management system is used
to manage your employees' job performance levels. Performance management begins with
selection of the candidate best suited for a position with your company. During the selection
process, you seek candidates who possess the qualifications necessary for each job within your
organization. Core competencies are a significant part of the qualifications. Examples of core
competencies include written and verbal communication skills, critical or analytical thinking
capabilities, and leadership techniques.
Step 2
Assemble the documents that a performance management system contains. Two primary
documents are the job description and job specifications. A job description outlines the essential
functions of the job, frequency of tasks or responsibilities, and minimum qualifications necessary
to perform the job. Many job descriptions contain minimum qualifications and desired

2. qualifications. Job specifications designate what physical and mental capabilities are required for
job performance. For instance, a forklift driver may be required to move 200-pound pallets for
three continuous hours each day. Another job specification may be for a software analyst
required to view multiple computer screens for 80 percent of the day. Job specifications are
typically constructed to determine a candidate's suitability and ability to operate safely.
Step 3
Prepare an outline of the performance standards you expect of your employees. For instance, if
you believe an employee is exceeding your expectations by serving 25 customers each day, that
is considered a performance standard. Using this scenario, an employee who meets expectations
might serve 15 customers per day; an employee whose performance falls below expectations
may be serving only five customers a day. Performance standards designate the quantity or
quality of tasks and responsibilities that exceed, meet or fall below your expectations.
Step 4
Seek out performance appraisal forms and incorporate your performance standards into a draft
performance appraisal form. Take into consideration the job type, functions and duties. The
performance standards and evaluation form for a production worker will differ from the
evaluation form used for a sales representative, but both are a component of the overall
performance management system. Your company's performance appraisal form may contain a
brief job description, the employee's position, rank or tenure, and instructions for completing the
form. A performance appraisal, or evaluation, may also include the employee's current and
projected goals.
Step 5
Study your draft performance appraisal form. Notice how much more comprehensive it is than
other documents in the performance management system. Some appraisal forms contain
instructions for conducting the appraisal meeting or listening to employee input. A performance
appraisal form can be defined as the culminating document in assessing an employee's
performance, or it can be considered the employee's map for upcoming goals and projects.
Evaluation of the employee's work history is summarized on the performance appraisal form to
become a part of your company's overall performance management system.
==================
III. Performance appraisal methods

3. 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

4. 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

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.
III. Other topics related to Performance management & appraisal (pdf
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