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To determine the effectiveness of employees and to rate them based on their
performance and attitude towards work.

To decide about Promotions and Incentives.

To assess the training needs of the employees.

To decide upon a pay raise.

To let the employees know where they stand in so far as their performances
are concerned.

To get feedback from the employees.

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 The RANKING METHOD consists of listing all employees from highest
to lowest in performance.
 An employee is compared with all other employees in the group and
placed in a simple rank order.
EMPLOYEE RANK
A 2
B 5
C 1
D 4
E 3

 The primary drawback of the ranking method is that the size of the
differences among individuals are not well defined.
 Ranking becomes difficult if the group to be ranked is very large.

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 An employee is compared with every other employee, one at a time.
And then the number of times that employee is better than others is
determined. Column
A B C D E + ves Rank
A X + - + + 3 2
B - X - - - 0 5
Row

C + + X + + 4 1
D - + - X - 1 4
E - + - + X 2 3
𝑵(𝑵−𝟏)
Number of Pairs =
𝟐
 If N = 5, Number of Pairs = 10.
 If N = 50, Number of Pairs = 1225.

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Employee name__________ Dept.________
Rater’s name ____________ Date________
--------------------------------------------------------------------------------------------
Excellent Good Acceptable Fair Poor
5 4 3 2 1 _
1) Dependability
2) Initiative
3) Overall output
4) Attendance
5) Attitude
6) Cooperation
TOTAL SCORE =

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 The method assumes, the performance levels of employees in a group
follows Normal Distribution.
 The ratings of employees‟ performance are distributed along a Bell-
Shaped Curve (Normal Distribution Curve).

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A Checklist is a list of statements that describe the worker and his behavior.

Each statement is assigned a weight depending upon its importance.

The rater writes „YES‟ or „NO‟ against each statement.

An individual‟s rating is determined by adding together the weights of statements

which are rated as „YES‟.
YES NO WEIGHTS

1. Is the employee really interested in the job? - - 1.5

2. Does he/she possess adequate knowledge about the job? - - 2
3. Is his/her attendance satisfactory? - - 1
4. Does he/she maintain the equipment in a good condition? - - 1.25
5. Does he/she co-operate with co-workers? - - 1.5

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 In this method, the manager keeps a written record of both highly
favourable and unfavourable actions in an employee‟s performance.
 When a “Critical Incident” involving an employee occurs, the manager
writes it down.
 Examples for Critical Incidents:
 Suggested improvements in work method.
 Refused to obey orders.
 Violated the established rules.
 Averted a serious accident.

 A list of critical incidents is kept during the entire rating period for each
employee.
 Negative incidents are more noticeable than positive ones.
 Its difficult to record all those incidents if the number of employees are
more.

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The reviewer will be from outside the department or from a 3rd
party agency.

The reviewer will be a professional in conducting appraisals.

The outsider reviews employee records and holds interviews to

rate the employees.

The review time is less and the reviewer should have a thorough
knowledge about the work and employees‟ working conditions.

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The manager writes a short essay describing each
employee‟s performance during the rating period.

The rater must describe the employee within a

number of broad categories..
• The rater‟s overall impression of the employee‟s performance.
• The promotability of the employee.
• The jobs that employee is now able or qualified to perform.
• The strengths and weakness of the employee.
• The training and assistance required by the employee.

The quality of rating depends on the writing skills

of the rater.

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