Performance appraisal performance management

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I. Contents of getting performance appraisal performance management

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An employee performance review can help gauge the progress an employee has made and his potential. By holding regular performance reviews, small business owners can develop and lead their employees in doing their jobs more effectively. Performance reviews can also help highlight potential issues that need to be solved.Strengths

An employee performance appraisal should include the strengths that the employee has displayed while doing his job. For example, if Tony in accounting has a particular talent for doing payroll correctly, even with added complications of calculating garnishments, this should be noted on his performance review. Anything that makes an employee stand out and shows how well he performs his job, especially when faced with adversity, should be included. If no particular strengths can be found, this should be noted, and a plan to improve should be given to the employee.Weaknesses

Weaknesses also need to be covered in a performance appraisal. These weaknesses should be covered fairly and simply. For example, if Tony is not strong when it comes to delivering weekly accounting reports, this needs to be included in his performance appraisal. Once the weaknesses have been discovered, include a plan to help an employee develop strength in these areas.

Goals Achieved

If the employee has been with the company for many years, he should have gone through several appraisals and been given goals to improve his performance. The goals they have achieved since the last performance appraisal should be noted in his new appraisal. This gives employees and management an idea of how an employee is progressing over time. If the employee is new, the basic goals he was given when he was hired need to be examined to see if they have been achieved.Potential for Improvement

The last section of an employee performance appraisal should include a section on how an employee can improve. The employee will get a copy of this appraisal. Illustrate what needs improvement while keeping the tone fair, balanced and upbeat. This section can mention goals you would like to employee to achieve.

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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 MethodEmployees are ranked according to their performance levels.It is easier to rank the best and the worst employee.Limitations of Ranking MethodThe “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.

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

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

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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