annual performance appraisal

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I. Contents of getting annual performance appraisal

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There are three key things to remember about annual performance reviews:
1. They are a waste of time.
2. They are required at many companies.
3. They should contain no surprises.
A Waste of Time
Annual performance reviews usually are a waste of time. They are too infrequent
and too formal to be of any value for the person being reviewed. They are
something managers feel they have to do, not something they see as a tool to
improve the performance of their group. In
Why Annual Performance Reviews Are A Waste Of Time I provide specific
suggestions on how to improve them.
Required
Most companies require an annual performance review be completed for every
employee. The Human Resources department provides a standard form and a
required grading scale. Every manager dutifully fills out the inane form, or has the
employee do it, then spends as little time as possible discussing it. Whatever
discussion does take place is usually combative, because the employee knows this
one document will determine the amount of their raise for the next year.

Since you can't get out of doing an annual performance review, do what you can to make them as
useful as possible.
No Surprises
The best way to get value out of a performance review is to make sure it contains
no surprises. You shouldn't put anything in an annual performance review that you
haven't already told the employee. This includes your overall evaluation of their
performance and how that compares to others in the group.

The main reason companies require annual performance reviews is to have a method for
distributing annual raises. If each employee is given a grade, raises can be distributed based on
that grade. As a result, when you do an annual performance review, the only thing the employee
listens to is their grade. They want to know what their raise will be.
Using employee grades to apportion raises is fundamentally flawed. It doesn't effectively tie
raises to what an employee did during the year to help the company achieve its goals. It is just a
mathematical distribution. However, you have to use it if it is the company system. Just make
sure you use it in the way that is most helpful in getting your group to produce at peak levels.
Assuming you have been doing continual performance reviews as things happen, and more
formal reviews every quarter, each of your employees will know how they are doing. Therefore,
assembling their annual performance review is simply a matter of pulling material from their
previous three quarterly reviews and adding the fourth quarter items. Make sure the employee
understands that this is just a quarterly review so they can concentrate on what you are telling
them, rather than worry about their grade.
When complete their fourth quarter review, you have completed the performance review part of
the annual review. You and the employee should have a clear and identical perspective on their
performance and, more importantly, their goals for the coming review period. You should both be
able to select the same appropriate grade from whatever list the company has compiled (A, B, C
1, 2, 3, etc.). If there is a difference of opinion, it's usually from the employee not understanding
how their performance compares to others in the group. So if the employee selects a grade higher
than you select, make sure you clarify why.
==================

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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