In this file, you can ref useful information about performance management and appraisal system such as performance management and appraisal system methods, performance management and appraisal system tips, performance management and appraisal system forms, performance management and appraisal system phrases … If you need more assistant for performance management and appraisal system, please leave your comment at the end of file.

1. Performance management and appraisal system
In this file, you can ref useful information about performance management and appraisal system
such as performance management and appraisal system methods, performance management and
appraisal system tips, performance management and appraisal system forms, performance
management and appraisal system phrases … If you need more assistant for performance
management and appraisal system, 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 management and appraisal system
==================
An issue that has generated increasing discussion and debate amongst senior management in
recent years is that of Management Appraisal Systems. Most organisations today, ranging from
the largest and most mature companies to small start-up entrepreneurial ventures, now have
management appraisal systems. Even the public sector has moved to increasing use of these
processes. At the same time there are increasing trends towards making these systems more
sophisticated through mechanisms such as ‘360o appraisals’.
However, in spite of the fact that these systems are so commonly used, many organizations find
that they are dissatisfied with what these systems achieve. This article aims to give a perspective
on management appraisal systems and their application in many organizations as seen in the
experience of Egon Zehnder International. The article will examine three key aspects of the
topic:
Egon Zehnder International has a somewhat unique international perspective on the appraisal of
executives. As a Firm, Egon Zehnder International interviews over 200,000 executives a year
and forms a view about applicants’ suitability for various business roles. A large proportion of
these interviewees also undergo a detailed assessment and appraisal as part of the selection
process. This experience is complemented by our rapidly growing practice in management
assessments. We now work for an increasing number of national and global companies in
helping senior executives assess their management talent. This is generally carried out as part of

2. an approach to ensure the organisation is aligned around a strategy. It is therefore from this
perspective that we present the following analysis.
The importance of Management Appraisal Systems
At its heart the management appraisal process aims to be one which provides executives with
clear feedback on their performance and their strengths and weaknesses in addressing the
responsibilities and challenges associated with their role. Ideally it is designed to be a process
which provides an accurate view of current performance, an assessment of executive potential
and agrees specific development actions which should be taken by the executive in order to reach
their potential. Through this process, organisations should receive a clear and accurate view of
the capability of the executives working within them, particularly with regard to senior
executives.
Yet it is clear that in many cases Management Appraisal Systems are not working effectively. At
a macro level we know that one third of CEOs in Fortune 500 companies have lasted fewer than
three years in their role. In part, this reflects the fact that the business world is becoming an
increasingly challenging environment and it is becoming more difficult to establish an effective
leadership agenda. However, a failure rate of a third of chief executives also implies that
organizations are having great difficulty assessing the capability of senior executives to take on
new challenges and difficulty giving those executives the guidance to develop the competencies
required of their role. Effective Management Appraisal systems should aid this.
Appraisal systems are also important because of their potential to encourage high performance.
Recent research indicates that the difference between high and average performers in a senior
executive role can be one or two orders of magnitude in terms of their impact on shareholder
value. There are significant differences that clearly indicate there are benefits to both
understanding who the organisational high performers are and also encouraging development
processes that enable average performers to increase their capability and effectiveness.
Other research indicates that, of a wide range of senior executives from large US based
corporations, only 3% believe their organisation ‘develop people well’. [These figures are taken
from large US corporations, ones that many of us regard as being the most effective in terms of
their human resource appraisal and development systems.]
In short, Management Appraisal Systems have real potential to improve the capability and
performance of people in an organisation but currently, in many cases, do not seem to be
successful in doing this. Why might this be so?
Observations of current practice

3. In many cases, there are real weaknesses in current execution of management appraisal systems.
At Egon Zehnder International we find that less than half of the senior executives we deal with in
client organisations have actually been appraised or evaluated in the last twelve months. That is;
while the organisation has systems in place, they tend to be lax in applying those systems to their
senior executives. This problem is compounded by the fact that many of the basic systems
themselves are flawed in various ways. Furthermore, we find that even when there are good
appraisal systems in place, organisations suffer greatly because of the lack of candour which is
used in their application.
==================
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.
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.

4. 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
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

5. 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
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.

6. III. Other topics related to Performance management and appraisal system
(pdf download)
• Top 28 performance appraisal forms
• performance appraisal comments
• 11 performance appraisal methods
• 25 performance appraisal examples
• performance appraisal phrases
• performance appraisal process
• performance appraisal template
• performance appraisal system
• performance appraisal answers
• performance appraisal questions
• performance appraisal techniques
• performance appraisal format
• performance appraisal templates
• performance appraisal questionnaire
• performance appraisal software
• performance appraisal tools
• performance appraisal interview
• performance appraisal phrases examples
• performance appraisal objectives
• performance appraisal policy
• performance appraisal letter
• performance appraisal types
• performance appraisal quotes
• performance appraisal articles