Advantages of Performance Appraisal

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Advantages of performance appraisal
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I. Contents of getting advantages of performance appraisal
==================
Employees, as well as managers, often question why organizations do employee performance
appraisals. Anyone who has received or been given a performance appraisal could argue why
they perceive it to be ineffective and a complete waste of time.

So what exactly is a performance appraisal?
A performance appraisal is an evaluation done on an employee’s job performance over a specific
period of time. It is the equivalent of a report card on an employee and how their manager
assessed their performance over the prior year.
Anyone who has worked in more than one department or at more than one organization can attest
to the fact that not all performance appraisal processes are the same.
The varying systems and processes are all over the map. Unfortunately, some are done so poorly
that they are not only designed to fail, but also to create a negative experience for both the
manager as well as the employee.

So why do organizations do performance appraisals?
There are many varying opinions on the subject of performance appraisals and why they are
done. Some organizations do performance appraisals because they feel obligated to do them –
because everyone else does.

Some organizations do performance appraisals to make sure they have a piece of paper in the
employee’s file – in case they ever need to do corrective action.
But successful organizations understand the importance of incorporating performance appraisals
into their performance management process and strategy.
==================

III. Performance appraisal methods

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.

2. 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.

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 – Rater’s 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.

6. 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.

III. Other topics related to Advantages of performance
appraisal (pdf, doc file download)
• Top 28 performance appraisal forms
•performance appraisal comments
• 11 performance appraisal methods
• 25 performance appraisal examples
•performance appraisal phrases
•performance appraisal process
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•performance appraisal objectives
•performance appraisal policy
•performance appraisal letter
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•performance appraisal quotes
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