The document provides information on how to conduct performance appraisals, including the key steps to develop an effective performance management system. It discusses constructing job descriptions and performance standards, implementing rewards and recognition programs, and ensuring good communication. The document also outlines several common performance appraisal methods, such as ranking, rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales. Overall, it offers guidance on developing and conducting structured performance evaluations.

1. How to make performance appraisal
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I. Contents of getting how to make performance appraisal
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The performance appraisal is just one step in a performance management system; however,
employees often see only the culminating performance appraisal meeting as the only factor in an
employer evaluating their job performance. Beginning with the tools to make your performance
management system effective, your annual evaluation can be a meeting to which employees look
forward rather than having your employees dread their performance appraisal meetings.
Performance Management System Fundamentals
The basis of a good performance management system is in the planning process. As you launch
your business, give serious consideration to the type of performance management system you
believe is best suited to your workplace. The performance management system your company
utilizes must be congruent with your company philosophy, mission and values. Defining your
company philosophy, mission and values starts with your business plan and carries out through
your company practices. Before constructing a performance appraisal that you believe will work,
consider the fundamental steps in designing a performance management system. These steps
include developing job descriptions and job specifications, identifying performance standards,
and formulating the types of rewards and recognition you offer for good performance.
Constructing Job Descriptions And Job Specifications
Accurate, thorough job descriptions and job specifications are an essential component of an
effective performance appraisal. The author of "Writing the Effective Performance Appraisal,"
Marry Anne Hahn, notes: "Know the job accountabilities of the employees. This entails
familiarity not only with the job description and department standards for quality and

2. productivity, but the variety of skills it takes to do the job well. The more specifically supervisors
can describe the jobs performed by staff, the more specifically they can tailor their review
writing to the level that individual employees have mastered them." Without knowing the
company's expectations and reviewing the tasks, duties and responsibilities, your employees are
lacking the necessary tools to great performance. Many publicly available resources provide
valuable information to help you construct job descriptions. One resource is the U.S. Bureau of
Labor Statistics Occupational Outlook Handbook, 2010-11 Edition. This online resource
contains basic responsibilities for thousands of job titles. Job specifications, on the other hand,
address the physical and mental capabilities an employee must possess to perform well in his
role with your company.
Establishing Performance Standards
Performance standards define the amount of work, effort or employee tasks necessary to reach a
predetermined level of performance. For example, if you have a sales representative whose work
is evaluated by the number of sales made each quarter, you could establish a performance
standard based on the sales revenue she generates. The standards for exceeding your company's
expectations for sales reps could equal 50 sales per month, 30 sales for meeting expectations and
10 sales per month for performance that falls below expectations. Another example from a
qualitative perspective could be a human resources employee relations specialist who effectively
lowers turnover through planning, organizing and evaluating employee opinion surveys.
Assessing a performance standard for improving employee engagement would be a suitable task
for your employee relations specialist to make your performance appraisal effective.
Implementing Rewards And Recognition
Most employees want to know what the rewards are for different levels of performance. Look at
your company's compensation structure and select the type of rewards you believe are equitable
for each level of performance. If you reward low-performing employees at all, they will receive a
minimum increase or bonus in exchange for the work performed during the appraisal period.
High performers are generally rewarded with a salary increase and perhaps a bonus--this
motivates employees to continue providing top performance, and bestows rewards and
recognition due for excellent performance, aptitude and initiative.
Communication
Communication is a critical element of your company's performance management system and
the performance appraisal specifically. During new-hire orientation, take time to explain to new
employees how their performance will be evaluated. It's important to explain the system and the
appraisal process--employees can better determine how to self-evaluate their performance if they
understand the performance standards on which their performance appraisals are based.
Importantly, your supervisors and managers must be trained to administer a performance

3. appraisal that is not dreaded by the manager and the employee. Many employees approach the
performance appraisal meeting with such trepidation that the ordeal becomes the least-liked part
of working. Don't let that happen. Keep your entire staff informed about your company's
expectations and how they can exceed those expectations.
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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.
2. Rating Scale

4. 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
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. 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.
III. Other topics related to How to make performance appraisal (pdf
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