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1. Performance appraisal journal
In this file, you can ref useful information about performance appraisal journal such as
performance appraisal journal methods, performance appraisal journal tips, performance
appraisal journal forms, performance appraisal journal phrases … If you need more assistant for
performance appraisal journal, please leave your comment at the end of file.
Other useful material for you:
• performanceappraisal123.com/1125-free-performance-review-phrases
• performanceappraisal123.com/free-28-performance-appraisal-forms
• performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal
I. Contents of getting performance appraisal journal
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As companies focus on growing their businesses, sometimes they lose focus on employees’
growth.
Traditional performance management systems neither inspire employees nor do they seem
explicitly aligned to achieving organizational goals.
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This misalignment results in appraisals simply becoming a ritual of fault-finding, political
bickering and pay negotiations, rather than a dialogue based on mutual trust and respect which
can foster performance excellence.
A poor appraisal system directly affects employee morale and engagement.
Performance management systems are meant to manage an optimal level of performance at three
levels — the organization, the team and the individual. In reality, however, companies use this
system only to incentivize performance narrowly defined as meeting of targets within a certain
role, closely entwined with the targets of the team. Overall business targets are juxtaposed on top
of this. Employees end up with too many goals, and companies make little effort to incentivize
behaviors and values that lead to high performance in the long-term.
Dynamic and flexible systems are therefore called for. Companies can improve their traditional
appraisal systems by addressing some key issues.

2. Goal-setting Does the organization’s goal-setting exercise take into account the business
complexity, the criticality of an individual’s role and the individual’s personal stretch potential?
Often, goal setting is largely a top-down, unilateral process, with employees having little say
about strategic organizational goals. This leaves little scope for individual inspiration. We
believe employees’ motivation can be tapped by including them in discussions about the team
and the organization’s goals.
Vital Few Too many goals or “key result areas” for employees spread across a diverse number of
themes and roles usually indicates poor focus. Companies should focus on the vital few goals
that are aligned with the organization’s short and long-term objectives. In addition, companies
should clarify how these goals are defined and measured. Suppose the goal is achieving bottom-
line growth. For a department that doesn’t directly generate revenue, such as the finance
department, the company can say performance will be judged using parameters such as how well
the procurement expenses were managed.
Instead of having a nebulous goal like “Let’s become customer centric”, make the goal specific,
time-bound, and list key actions that will make it measurable. That’s what you call a smart goal.
Behavioral change During employee townhall meetings, companies often stress the need for
initiative and innovation. But an employee may end up with a poor performance rating if in the
process of demonstrating those virtues, he or she has missed defined business targets!
Organizations that want to drive behavioral changes need to show their commitment to these
goals by giving them appropriate weight in the performance appraisal system. They should
define how these behavioral goals are measured, so that employees know exactly where they
stand if they come up with new ideas or spend time on innovative projects. Finally, companies
need to give employees adequate time to demonstrate these behaviors.
Appraisal frequency Companies have to differentiate high performers and high-performing teams
in a business environment that is constantly changing. When companies are pursuing a
constantly moving target, is it fair to evaluate an employee’s performance against goals that are
frozen at the beginning of the year? We believe companies need to have at least two or three
review sessions. One could be to review employee’s annual performance, while another could be
held in conjunction with the business planning and budget team to set targets for the next year.
This way the processes of setting strategic goals and evaluating employees receive the attention
they independently merit.
Flexible rating scale Globally, companies rely on a standard bell curve which rewards
performance partly by comparing the individual’s performance with his or her peers. While this
tool works well in a normal year, organizations should build flexibility into their appraisal

3. systems to reflect changes in the business environment. Typically, companies follow a four-point
scale for employee ratings: 10% of the employees get a rating of one (the lowest), 40% get a
rating of two or three, and only 10% get the highest, four-point rating. These percentages are
rarely subject to change. We suggest that organizations tweak their distributions depending on
the business environment. Use the standard distribution if the company is on target. But if the
targets are exceeded either by the company or a particular unit, then the company should skew its
performance curve so that more employees can benefit from the good performance. For instance,
in a good year, companies can use a distribution of 5-30-45-20. If one unit merits a three rating
and another a four, then support functions like finance and human resources can be given a
weight of 3.5, and their staff rated accordingly. Alternately, if the company does not do well, it
can shift its distribution downward to 15-50-30-5.
Keeping it real Even the most rigorous systems cannot replace leadership, wisdom and prudence.
The company’s board has to take ownership of the performance management process by asking
questions like: are the goals fair? Can we also reward work on a “best effort” basis rather than
only on outcomes, so that initiative and motivation don’t get squashed? Can we reward
individuals for demonstrating behaviors emblematic of organizational values? Can we recognize
employees for demonstrating everyday leadership through a commitment for learning and
development?
Companies should demonstrate a commitment to their employees by continuously revamping
and improving their performance management systems to tie them closer to reality. More than
anything else, this will show employees that the company cares.
==================
III. Performance appraisal methods
1.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
i. Employees are ranked according to their performance
levels.

4. ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. 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.
ii. 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.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. 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 – Rater’s biases
3. Checklist method

5. 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
4. 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.
5. Essay Method

6. 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.
6. 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.
III. Other topics related to Performance appraisal journal (pdf download)
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