Types of performance appraisal systems

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I. Contents of getting types of performance appraisal systems

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How many times have you written a performance appraisal and had to print it out for someone
else's review and comments? Have you had to wait for someone to return from a business trip or
vacation in order to submit their performance review late? If your answer is "too many to count"
and "Absolutely"then online performance appraisals can make life much easier.
Accessible from anywhere
Having an online performance appraisal system allows you access to the data from anywhere
all you need is an Internet connection. Simply log on to your web-based program and view all
necessary forms, as well as employee profile information and self-assessments. You can also
solicit 360-degree assessments and electronically route the final performance appraisal to HR for
approvals and signatures. Now, performance reviews can be written anywhere, at any time
eliminating age-old problems associated with a paper system, such as with tracking down people
for missing forms or signatures!
Online writing assistants and coaches
Have you ever stared at a blank page looking for just the right word to describe someone's skill
level or performance or worried that the review you've written isn't the best choice from a legal
standpoint? A well-designed online performance appraisal system allows you to create
customized reviews with suggestions from built-in writing assistants that help you find the "right
word" and offer legal-scan functions that double-check each review from a legal perspective.
Such built-in scans can identify and flag words that may be legally sensitive, explain the legal
considerations, and offer suggestions for alternative wording.

Managers can also receive specific suggestions for coaching employees on office
communications, interpersonal skills, and other competencies. These tools not only make it
easier for managers to deliver quality feedback, but also make things clearer for the employee
and enabling the employee to be more successful reaching his or her goals.
Make performance decisions based upon real-time data
Sometimes it's hard to remember all the projects your team has been working on throughout the
year when it's time to write their annual performance appraisal. An online system enables
managers the ability to collect performance data throughout the entire review period, acting as a
system of record. So, when you are writing performance reviews, you have a more accurate
picture of the employee's performance instead of what's available only in your recent memory.
With access to the information available at all times, managers are more in touch with their
employees' progressduring every phase of goal completion, and can offer immediate
reinforcement or coaching to keep performance and deadlines on track. Team metrics can be
reviewed to calculate pay-for-performance bonuses, raises and promotions using the most up-todate information. And, when positions open due to attrition or promotion, you have the
information readily available to fill these vacancies with qualified personnel.
Goal Accountability
Accountability and monitoring of goals are linked together within an online appraisal system,
allowing managers to ensure employees are held accountable for goals set. Employees can record
progress on the goals listed within the online system and their managers can review the status at
any time. This convenient access keeps everyone accountable and on track for success.
Once employees clearly understand their individual goals, management can also communicate
how individual goals relate to the company's goals. This practice naturally creates more engaged
employees who begin focusing on ways to work smarter and more efficiently. This boost in
employee productivity naturally leads to increased profitability for the company.
Aligning individual goals and company goals is key to establishing a true pay-for-performance
culture at your company by providing the foundation for closely linking reward systems with
both individual and team performance. It's no secret that the key to retaining your top performing
employees is recognizing and compensating them appropriately. Alternatively, companies often
lose money each year in overcompensation to those individuals whose performance doesn't help
achieve key business objectives.
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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 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.

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.

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