SlideShare a Scribd company logo
1 of 6
Ranking method of performance appraisal
In this file, you can ref useful information about ranking method of performance appraisal such
as ranking method of performance appraisal methods, ranking method of performance appraisal
tips, ranking method of performance appraisal forms, ranking method of performance appraisal
phrases … If you need more assistant for ranking method of performance appraisal, 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 ranking method of performance appraisal
==================
A performance appraisal system is a must for most businesses with employees. However, regular
administration of reports is not always a priority with owners and managers. Sometimes
management is confused about how to assess the performance of employees. Using the ranking
method for your performance appraisals takes the guesswork out of your ratings, but it comes
with drawbacks, too.
Definition
Performance appraisals are used to assess how well your employees are performing their duties.
Administered regularly, these reports are valuable tools in managing your staff and ensuring that
productivity is at optimum levels in your department. There are many types of performance
appraisals. Each company must determine which one to use and should train management and
employees on how the system operates. One appraisal method is ranking, also referred to as
forced ranking, which rates an employee in comparison to others instead of against employment
standards for the duties performed. Normally, the ranking system shows a small percentage of
overachieving employees, a large number of average workers and a small amount of
underachieving employees.
Advantages
When ranking employees based on their levels of performance, they may work harder to be on
top in their ratings. Generally, those who rank highest are rewarded with pay increases, bonuses,
promotions and other benefits. This system ensures that those who deserve recognition for their
efforts are not taken for granted by falling through the cracks when it comes to documenting
their success. It also allows you to see, in black and white, whom you can rely on for difficult
assignments and who needs added help to improve performance. In addition, ranking helps you
know who the best and brightest are so that you can ensure their job satisfaction and retention.
Disadvantages
When comparing one employee to another, it is sometimes hard for a manager to remain
objective. Identifying the performance accomplishments of an employee can be clouded by how
well-liked that person is in the work group. Also, undesirable competitive behavior could
increase when employees at the top of the ranking are earning financial incentives. It's
imperative for members of a group to work well together and, even if getting along with others is
one of the objectives that determines ranking, it is tempting to withhold important information,
not communicate effectively with teammates and exhibit other actions that sabotage the outcome
of a coworker's performance. Also, if all of your employees are performing at a satisfactory level
or above, you need to choose the ones who will be ranked at the lowest levels. This does not
accurately represent the performance of some employees, which can negatively impact morale.
Alternatives
Other employee appraisal methods can be used if ranking does not fit into your corporate
mission. Comparing employees to performance standards instead of each other is a type of rating
system that is based on results. The performance report states a job duty and offers a variety of
ways to accomplish it, with each one describing a level of performance from less than
satisfactory to outstanding. Number rating identifies how well the employee is performing. This
is similar to the results method, except that the levels of performance are weighted and the
outcome is a total number that determines an overall score. A 360-degree feedback system uses
anonymous reports from people with whom the employee comes in contact, such as other
supervisors, coworkers and customers.
==================
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
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. 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 Ranking method of performance appraisal (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

More Related Content

What's hot

Performance Appraisal ppt [hrm]
Performance Appraisal ppt [hrm]Performance Appraisal ppt [hrm]
Performance Appraisal ppt [hrm]
angel01021990
 
Compensation management
Compensation managementCompensation management
Compensation management
805984
 

What's hot (20)

Performance Appraisal ppt [hrm]
Performance Appraisal ppt [hrm]Performance Appraisal ppt [hrm]
Performance Appraisal ppt [hrm]
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
Compensation management
Compensation managementCompensation management
Compensation management
 
Performance – linked compensation
Performance – linked compensationPerformance – linked compensation
Performance – linked compensation
 
Performance appraisal of 5 companies done by shweta-bebarta
Performance appraisal of 5 companies  done by shweta-bebartaPerformance appraisal of 5 companies  done by shweta-bebarta
Performance appraisal of 5 companies done by shweta-bebarta
 
method of job evaluation
method of job evaluationmethod of job evaluation
method of job evaluation
 
Unit- 1. Performance Management and reward systems in Context
Unit- 1.	Performance Management and reward systems in Context	Unit- 1.	Performance Management and reward systems in Context
Unit- 1. Performance Management and reward systems in Context
 
Job evaluation-ppt
Job evaluation-ppt Job evaluation-ppt
Job evaluation-ppt
 
Performance Management & Reward Systems
Performance Management & Reward SystemsPerformance Management & Reward Systems
Performance Management & Reward Systems
 
Performance Appraisals
Performance AppraisalsPerformance Appraisals
Performance Appraisals
 
Line and staff, responsibility of hrm lecture_ 02 class
Line and staff, responsibility of hrm lecture_ 02 classLine and staff, responsibility of hrm lecture_ 02 class
Line and staff, responsibility of hrm lecture_ 02 class
 
Chapter 5 international compensation
Chapter   5 international compensationChapter   5 international compensation
Chapter 5 international compensation
 
Techniques for Forecasting Human Resources
 Techniques  for Forecasting   Human Resources Techniques  for Forecasting   Human Resources
Techniques for Forecasting Human Resources
 
JOB ANALYSIS - PROCESS
JOB ANALYSIS - PROCESSJOB ANALYSIS - PROCESS
JOB ANALYSIS - PROCESS
 
Performance Management And Appraisal - HRM
Performance Management And Appraisal - HRMPerformance Management And Appraisal - HRM
Performance Management And Appraisal - HRM
 
Human Resource Management: Reward and compensation
Human Resource Management: Reward and compensationHuman Resource Management: Reward and compensation
Human Resource Management: Reward and compensation
 
360 degree final ppt
360 degree final ppt360 degree final ppt
360 degree final ppt
 
Presentation on performance appraisal process and methods
Presentation on performance appraisal process and methodsPresentation on performance appraisal process and methods
Presentation on performance appraisal process and methods
 
Performance Appraisal
Performance Appraisal Performance Appraisal
Performance Appraisal
 
Selection
SelectionSelection
Selection
 

Viewers also liked

Performance appraisal concepts and method
Performance appraisal  concepts and methodPerformance appraisal  concepts and method
Performance appraisal concepts and method
Pranav Kumar Ojha
 
Checklist method
Checklist methodChecklist method
Checklist method
Bibin Ssb
 
Performance Appraisal in Tata Motors
Performance Appraisal in Tata MotorsPerformance Appraisal in Tata Motors
Performance Appraisal in Tata Motors
surabhi agarwal
 
Chapter 8 - Performance Management
Chapter 8 - Performance ManagementChapter 8 - Performance Management
Chapter 8 - Performance Management
Kim Michelle Tan
 
Paired comparison analysis
Paired comparison analysisPaired comparison analysis
Paired comparison analysis
Confidential
 
Methods of performance appraisal
Methods of performance appraisalMethods of performance appraisal
Methods of performance appraisal
Sivaprasad,K I
 

Viewers also liked (20)

Straight ranking method of performance appraisal
Straight ranking method of performance appraisalStraight ranking method of performance appraisal
Straight ranking method of performance appraisal
 
Ranking method
Ranking methodRanking method
Ranking method
 
Paired comparison method of performance appraisal
Paired comparison method of performance appraisalPaired comparison method of performance appraisal
Paired comparison method of performance appraisal
 
Forced distribution method of performance appraisal
Forced distribution method of performance appraisalForced distribution method of performance appraisal
Forced distribution method of performance appraisal
 
Performance appraisal concepts and method
Performance appraisal  concepts and methodPerformance appraisal  concepts and method
Performance appraisal concepts and method
 
Checklist method
Checklist methodChecklist method
Checklist method
 
Performance Appraisal in Tata Motors
Performance Appraisal in Tata MotorsPerformance Appraisal in Tata Motors
Performance Appraisal in Tata Motors
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Confidential report in performance appraisal
Confidential report in performance appraisalConfidential report in performance appraisal
Confidential report in performance appraisal
 
Chapter 8 - Performance Management
Chapter 8 - Performance ManagementChapter 8 - Performance Management
Chapter 8 - Performance Management
 
Paired comparison analysis
Paired comparison analysisPaired comparison analysis
Paired comparison analysis
 
Ranking method of job evaluation - compensation management - Manu Melwin Joy
Ranking method of job evaluation  -  compensation management - Manu Melwin JoyRanking method of job evaluation  -  compensation management - Manu Melwin Joy
Ranking method of job evaluation - compensation management - Manu Melwin Joy
 
Performance management and appraisal
Performance management and appraisalPerformance management and appraisal
Performance management and appraisal
 
Performance Appraisal
Performance Appraisal Performance Appraisal
Performance Appraisal
 
The Performance Appraisal System.
The Performance Appraisal System.The Performance Appraisal System.
The Performance Appraisal System.
 
Business studies teacher performance appraisal
Business studies teacher performance appraisalBusiness studies teacher performance appraisal
Business studies teacher performance appraisal
 
Performance appraisal wiki
Performance appraisal wikiPerformance appraisal wiki
Performance appraisal wiki
 
How to calculate performance appraisal
How to calculate performance appraisalHow to calculate performance appraisal
How to calculate performance appraisal
 
Methods of performance appraisal
Methods of performance appraisalMethods of performance appraisal
Methods of performance appraisal
 
Discipline Chart
Discipline ChartDiscipline Chart
Discipline Chart
 

Similar to Ranking method of performance appraisal

Similar to Ranking method of performance appraisal (20)

360 degree performance appraisal system
360 degree performance appraisal system360 degree performance appraisal system
360 degree performance appraisal system
 
What is performance appraisal system
What is performance appraisal systemWhat is performance appraisal system
What is performance appraisal system
 
Sample of performance appraisal
Sample of performance appraisalSample of performance appraisal
Sample of performance appraisal
 
Performance appraisal problems and solutions
Performance appraisal problems and solutionsPerformance appraisal problems and solutions
Performance appraisal problems and solutions
 
Performance management performance appraisal
Performance management performance appraisalPerformance management performance appraisal
Performance management performance appraisal
 
Company performance appraisal
Company performance appraisalCompany performance appraisal
Company performance appraisal
 
What is 360 degree performance appraisal
What is 360 degree performance appraisalWhat is 360 degree performance appraisal
What is 360 degree performance appraisal
 
Performance appraisal in india
Performance appraisal in indiaPerformance appraisal in india
Performance appraisal in india
 
Benefits of performance appraisal
Benefits of performance appraisalBenefits of performance appraisal
Benefits of performance appraisal
 
Performance appraisal and management
Performance appraisal and managementPerformance appraisal and management
Performance appraisal and management
 
Performance appraisal questionnaire
Performance appraisal questionnairePerformance appraisal questionnaire
Performance appraisal questionnaire
 
Performance appraisal scale
Performance appraisal scalePerformance appraisal scale
Performance appraisal scale
 
Performance appraisal instrument
Performance appraisal instrumentPerformance appraisal instrument
Performance appraisal instrument
 
Modern methods of performance appraisal
Modern methods of performance appraisalModern methods of performance appraisal
Modern methods of performance appraisal
 
Performance appraisal methods
Performance appraisal methodsPerformance appraisal methods
Performance appraisal methods
 
Factors affecting performance appraisal
Factors affecting performance appraisalFactors affecting performance appraisal
Factors affecting performance appraisal
 
Factors affecting performance appraisal
Factors affecting performance appraisalFactors affecting performance appraisal
Factors affecting performance appraisal
 
What is a performance appraisal system
What is a performance appraisal systemWhat is a performance appraisal system
What is a performance appraisal system
 
Theories of performance appraisal
Theories of performance appraisalTheories of performance appraisal
Theories of performance appraisal
 
Traditional methods of performance appraisal
Traditional methods of performance appraisalTraditional methods of performance appraisal
Traditional methods of performance appraisal
 

More from marianelson0292

More from marianelson0292 (12)

Research paper on performance appraisal
Research paper on performance appraisalResearch paper on performance appraisal
Research paper on performance appraisal
 
Purposes of performance appraisal
Purposes of performance appraisalPurposes of performance appraisal
Purposes of performance appraisal
 
Problems in performance appraisal
Problems in performance appraisalProblems in performance appraisal
Problems in performance appraisal
 
Performance appraisal training
Performance appraisal trainingPerformance appraisal training
Performance appraisal training
 
Performance appraisal rating scale
Performance appraisal rating scalePerformance appraisal rating scale
Performance appraisal rating scale
 
Performance appraisal problems
Performance appraisal problemsPerformance appraisal problems
Performance appraisal problems
 
Performance appraisal images
Performance appraisal imagesPerformance appraisal images
Performance appraisal images
 
Performance appraisal goals examples
Performance appraisal goals examplesPerformance appraisal goals examples
Performance appraisal goals examples
 
Performance appraisal criteria
Performance appraisal criteriaPerformance appraisal criteria
Performance appraisal criteria
 
Performance appraisal benefits
Performance appraisal benefitsPerformance appraisal benefits
Performance appraisal benefits
 
Examples of performance appraisal
Examples of performance appraisalExamples of performance appraisal
Examples of performance appraisal
 
Employees comments on performance appraisal
Employees comments on performance appraisalEmployees comments on performance appraisal
Employees comments on performance appraisal
 

Recently uploaded

1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
heathfieldcps1
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Krashi Coaching
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
SoniaTolstoy
 

Recently uploaded (20)

1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
Disha NEET Physics Guide for classes 11 and 12.pdf
Disha NEET Physics Guide for classes 11 and 12.pdfDisha NEET Physics Guide for classes 11 and 12.pdf
Disha NEET Physics Guide for classes 11 and 12.pdf
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptxINDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
 
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
 
fourth grading exam for kindergarten in writing
fourth grading exam for kindergarten in writingfourth grading exam for kindergarten in writing
fourth grading exam for kindergarten in writing
 
Call Girls in Dwarka Mor Delhi Contact Us 9654467111
Call Girls in Dwarka Mor Delhi Contact Us 9654467111Call Girls in Dwarka Mor Delhi Contact Us 9654467111
Call Girls in Dwarka Mor Delhi Contact Us 9654467111
 
9548086042 for call girls in Indira Nagar with room service
9548086042  for call girls in Indira Nagar  with room service9548086042  for call girls in Indira Nagar  with room service
9548086042 for call girls in Indira Nagar with room service
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactAccessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impact
 
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13
 

Ranking method of performance appraisal

  • 1. Ranking method of performance appraisal In this file, you can ref useful information about ranking method of performance appraisal such as ranking method of performance appraisal methods, ranking method of performance appraisal tips, ranking method of performance appraisal forms, ranking method of performance appraisal phrases … If you need more assistant for ranking method of performance appraisal, 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 ranking method of performance appraisal ================== A performance appraisal system is a must for most businesses with employees. However, regular administration of reports is not always a priority with owners and managers. Sometimes management is confused about how to assess the performance of employees. Using the ranking method for your performance appraisals takes the guesswork out of your ratings, but it comes with drawbacks, too. Definition Performance appraisals are used to assess how well your employees are performing their duties. Administered regularly, these reports are valuable tools in managing your staff and ensuring that productivity is at optimum levels in your department. There are many types of performance appraisals. Each company must determine which one to use and should train management and employees on how the system operates. One appraisal method is ranking, also referred to as forced ranking, which rates an employee in comparison to others instead of against employment standards for the duties performed. Normally, the ranking system shows a small percentage of overachieving employees, a large number of average workers and a small amount of underachieving employees. Advantages When ranking employees based on their levels of performance, they may work harder to be on top in their ratings. Generally, those who rank highest are rewarded with pay increases, bonuses,
  • 2. promotions and other benefits. This system ensures that those who deserve recognition for their efforts are not taken for granted by falling through the cracks when it comes to documenting their success. It also allows you to see, in black and white, whom you can rely on for difficult assignments and who needs added help to improve performance. In addition, ranking helps you know who the best and brightest are so that you can ensure their job satisfaction and retention. Disadvantages When comparing one employee to another, it is sometimes hard for a manager to remain objective. Identifying the performance accomplishments of an employee can be clouded by how well-liked that person is in the work group. Also, undesirable competitive behavior could increase when employees at the top of the ranking are earning financial incentives. It's imperative for members of a group to work well together and, even if getting along with others is one of the objectives that determines ranking, it is tempting to withhold important information, not communicate effectively with teammates and exhibit other actions that sabotage the outcome of a coworker's performance. Also, if all of your employees are performing at a satisfactory level or above, you need to choose the ones who will be ranked at the lowest levels. This does not accurately represent the performance of some employees, which can negatively impact morale. Alternatives Other employee appraisal methods can be used if ranking does not fit into your corporate mission. Comparing employees to performance standards instead of each other is a type of rating system that is based on results. The performance report states a job duty and offers a variety of ways to accomplish it, with each one describing a level of performance from less than satisfactory to outstanding. Number rating identifies how well the employee is performing. This is similar to the results method, except that the levels of performance are weighted and the outcome is a total number that determines an overall score. A 360-degree feedback system uses anonymous reports from people with whom the employee comes in contact, such as other supervisors, coworkers and customers. ================== III. Performance appraisal methods
  • 3. 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 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
  • 4. 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. Essay Method
  • 5. 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 Ranking method of performance appraisal (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
  • 6. • 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