Hrm performance appraisal

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I. Contents of getting hrm performance appraisal

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What is the most striking difference between the most positive and the most negative units when
comparing the employee perceptions on performance appraisal?
In their article What determines employee perceptions on HRM process features? Jennie
Sumelius, Ingmar Bjrkman, Mats Ehrnrooth, Kristiina Mkel and Adam Smale study
employee perceptions on the visibility, validity, and procedural and distributive justice of
performance appraisal in global companies.
One of the findings that comes out from the cross-unit comparison is what makes the difference
between the more positive and the more negative units. In the more positive units the
employees saw their supervisors commitment to and capability in conducting performance
appraisal much more favorably.
In the negative units, there was a more prevalent perceived lack of connection between
performance appraisal and outcomes. This suggests units may need to pay more careful
attention to setting relevant and clear goals in order to make use of one of the strongest
motivational forces on employee behavior in organizations.
The study also concludes that even though the employees mostly considered the performance
appraisal practice to be visible, it was felt like something that just had to be done, an effort that
was emphasized during certain time of the year. Thus, even though the companies that were
researched paid much attention to implementation of the performance appraisal, it seemed that
more attention should be put at getting the management and supervisors to internalize the

practice. This would improve the employees perceptions of the quality of performance appraisal
and the level of internalization.
In the multi-national companies, balancing standardization and localization is a wellacknowledged dilemma among both the practitioners and researchers in the field. An interesting
finding related to this, is that the lack of adaptation of the performance appraisal system caused
negative views towards the whole system. Meaning, that too much standardization result in
employees paying less attention to and attaching less value to a system that they perceive not to
be relevant in their context.

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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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