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Objectives should be clear: The objectives of appraisal should be clear and specific. An
effective performance system will always have specific appraisal attributes to match the
employees job description.
Data should be valid and reliable: An effective performance appraisal system provides
data that is consistent, reliable and valid. It supplies data according the objective that
serves the purpose of performance appraisal and succession planning.
Performance criteria should be well defined: Effective performance appraisal has
standard appraisal forms, rules and appraisal procedures. It will have well defined
performance criteria and standards.
Economical and less time consuming: Effective performance appraisal systems are
designed to be economical and less time consuming to bring maximum benefits.
Should initiate follow up: A post appraisal talk should be arranged for employees to get
feedback from their managers. It also helps the organization to learn about the problems
and difficulties the employees might be facing and discover suitable training.
Performance appraisal is one thing that not done properly can harm the organization and the
employees by creating conflicts. Organization that has conflicting teams at work can never
prosper. Therefore, choosing an effective performance appraisal system is a wise thing to do, and
it is now easy with Synergita Software that brings performance management closure to people
and business.
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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.