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1. Company performance appraisal
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I. Contents of getting company performance appraisal
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Performance appraisal system practices vary from employer to employer. With the exception of
the forced ranking type of performance appraisal, the employer size does not dictate which type
of appraisal is best. A 360-degree performance appraisal system is common among employers
that practice inclusion, and the self-evaluation method of performance appraisals usually gives
the impression that the employer truly values its employees’ opinions.
360-Degree Feedback
Feedback from the supervisor, manager and peers become part of a 360-degree performance
appraisal. Prior to implementing a performance management system that involves this method of
evaluating employees, the human resources department must provide extensive training to all
employees. Employees who have never been in a supervisory or management role require
coaching on how to give objective feedback concerning another employee’s performance.
Interpersonal relationships between peers affect the feedback, positively or negatively. The
human resources trainer addresses the issue of putting aside personal feelings from the
evaluation process. Everyone in the company receives a 360-degree evaluation, from hourly staff
to top management. Companies that utilize this type of performance appraisal may want to
examine the performance of leadership through seeking objective feedback from employees.
Employee Self-Evaluation
Some employers give employees an opportunity to evaluate their own performance. Prior to the
performance appraisal meeting, the employee and the manager each complete an evaluation
form. An employee who has been keeping track of his responsibilities and accomplishments has
2. no problem evaluating his own performance. Employees who wait until the last week before the
performance appraisal meeting may have difficulty with recall. During the meeting, the
employee generally reviews his self-evaluation, explaining the reasons why he evaluated his
performance in every area. The manager then produces the performance appraisal she has
completed. Comparison of the two appraisals becomes the topic for discussion as the employee
and manager attempt to reconcile any differences. If there is a large disparity between the two
evaluations, a subsequent meeting may be necessary to resolve any differences.
Forced Ranking
A performance appraisal system that requires forced ranking is one of the least favored types of
evaluations, yet many large employers utilize this type of appraisal. Upon evaluating employee
performance, managers determine where the employee is in terms of job performance, skills,
motivation, and other substantive and subjective factors. Employees are then ranked A, B or C.
Employees in the A group are typically hard workers who are on track to a solid future with the
company. According to Jack Welch, former General Electric CEO and author of "Winning,"
roughly 20 percent of the workforce can be considered A-list employees. The majority of
employees are in the B group, which means they are meeting expectations but not performing at
an optimum level. Seventy percent of employees usually fall into this category, and their rewards
for performance are usually average, too. The lowest-performing group of employees--the C-list-
-is considered expendable or employees who failed to meet their job expectations. These
employees are not rewarded for performance and may eventually end the employment
relationship.
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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.
3. 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
4. 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.
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