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Motivation
A performance appraisal system based on numbers is designed to identify areas in the
employee's performance that require attention. The manager and the employee then work on a
developmental program that will address those issues and attempt to improve performance. But
the employee may be more motivated to raise her scores rather than learn substantial ways to
improve performance, according to the Performance Appraisals website. The only motivation the
performance appraisal offers is the incentive to raise appraisal scores from one year to the next.
The system lacks the ability to reward proactive attempts to become a better all-around
employee.
Scope
When a candidate is interviewed prior to being hired, he is sometimes given a test that measures
how he would react in certain situations and whether he is proactive. Once he becomes an
employee, he is subjected to annual performance reviews rather than continued testing to
determine if he is a self-starter, has ability to take on responsibility or the response time to
different job-related situations. A performance appraisal is very limited in scope. It creates
impressions based on past performance rather than real ability. If someone shows the ability to
do his job well, then the appraisal will reward him. But if he also possesses the ability to reduce
production costs by creating innovative ways to do his job, then the appraisal has no way of
determining that.
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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
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