Performance Appraisal Importance
Performance Appraisal Importance
Performance Appraisal Importance
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The employee is not the only beneficiary - the organisation benefits through identifying
employees for promotion, noting areas for individual improvement, and by using the system as a
basis for human resource planning.
Conducting the appraisal interview
There is often misunderstanding as to how an appraisal should be conducted. Appraisees
sometimes perceive their annual appraisal as a threat. However, this can be overcome if the
appraisal system is well-constructed, and seen to be fair to the individual and consistent across
the organisation. A typical negative response to appraisals is that they are confrontational.
This is often due to a lack of agreement on performance or poor explanation by management.
Additionally, it is sometimes seen as a judgement - a one-sided process based entirely on the
manager's perspective. At the other extreme it is simply regarded as a chat.
Perhaps the greatest problem with appraisals is that they are often regarded as a nuisance. At
best, appraisals may be considered an annual event, the results of which quickly become out-ofdate. Moreover, some may view the whole process as bureaucratic - a form-filling exercise
devised to satisfy the organisation. Consequently, the main purpose of an appraisal - that of
identifying individual and organisational performance and improvement - is forgotten.
Basic to the successful application of appraisal systems is the appraisal interview. A formal
appraisal interview is an integral part of appraisal and performance management. The interview
must be organised properly and carefully. Prior to the interview, the appraiser, who should be the
immediate supervisor, must prepare the correct and relevant documentation.
This comprises the job description, a statement of performance or appraisal form, and a record
highlighting the employee's performance. Other relevant documentation used at an appraisal can
include peer assessments, if appropriate, comments from clients and customers, and any selfassessment forms issued to the employee prior to the interview. Finally, the individual's
employment file should be referred to.
This should contain notes on the employee's general personal attitude and any disciplinary issues.
Appraisal methods
Many writers and practitioners in people management take one of three basic approaches to the
appraisal interview. The so-called tell and sell method involves the appraiser explaining how the
assessment is to be undertaken, gaining acceptance for the evaluation and improvement plan.
Interpersonal skills are important with this approach to motivate the appraisee.
An alternative approach is the tell and listen method, where the appraisee is invited to respond to
the way that the interview is to be conducted. This requires counselling skills and careful
encouragement to allow the appraisee to participate fully.
Finally, there is the problem solving method, where a more helpful approach is taken which
concentrates on the work problems of the appraisee, who in turn is encouraged to think through
any problems. After the interview, both parties should agree on any actions to be taken, an agreed
action plan on improvement, and methods of monitoring progress and appropriate feedback
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1. 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.
3. 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 Raters biases
4. 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
5.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
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
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.
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.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.