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Unit-IV; Professional Sales Representative (PSR).pptx
Performance appraisal instrument
1. Performance appraisal instrument
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I. Contents of getting performance appraisal instrument
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Before you can create an effective and usable performance appraisal instrument, you need to
clarify your organization's performance management system and philosophy. Employee
performance usually encompasses performance standards, corrective and disciplinary review and
annual performance appraisals. And many employers still subscribe to the philosophy that
suggests punitive action for poor performance and behavior and monetary rewards -- such as
raises or on-the-spot cash awards -- for job performance that exceeds the company's
expectations. Your performance management system and philosophy affect how supervisors
conduct appraisals and the performance appraisals they use.
Performance Appraisal Types
Of the many different types of performance appraisals, understanding employees' job duties is an
important factor in determining the best-suited appraisal. For example, production workers' jobs
may be best evaluated using graphic ratings scales that permit numeric or letter grades for
specific job functions. Behaviorally anchored rating scales, or BARS, are another form of
appraisals that require supervisors to assign numerical rankings to employees' performance. On
the other hand, managers whose goals are supposed to be aligned with those of the organization,
will probably do well with an appraisal that identifies their annual and quarterly goals, usually
referred to as a management-by-objectives performance appraisal.
Performance Standards
Employee performance standards set the bar for employer expectations. They're necessary for
supervisors to accurately grade employee performance because they outline what an employee
2. needs to do to achieve the organization's goals. For example, sales managers connect their
employees' goals to the company's revenue goals. Sales managers set revenue goals for their
employees and the employees' performance standards assess whether they meet those goals. A
sample performance standard for sales personnel is to achieve 20 percent repeat customer
business. Employees who achieve 30 percent repeat business exceed the company's expectations,
while employees whose repeat business is just 10 percent have performance ratings that fall
below the company's expectations.
Performance Appraisal Process
How supervisors actually conduct their employees' evaluations is an essential part in developing
an appraisal instrument. Many performance appraisals begin with the supervisor's rating, but
some require the employee's self-assessment. If you're going to require a self-assessment, you'll
likely need two separate performance instruments. But the majority of performance appraisal
instruments rely solely on supervisors' input. Set the parameters for what the supervisor is
expected to rank and how supervisors rank employees against their peers. Determine how
supervisors should conduct one-on-one discussions with their employees and whether appraisals
should include supervisor-employee goal setting for the upcoming review period.
Training and Modifications
The measurements that performance appraisal instruments provide are useless if they aren't
calculated properly or if your supervisors aren't skilled at producing unbiased, fair analyses about
employees' job duties and performance expectations. That's why it's critical that you provide
leadership training to supervisors and managers on what performance management systems are
suitable for your work environment and the benefits of evaluating employees honestly and
routinely. When you finalize your instrument, review its components with department
supervisors and managers. Engage them in experiential learning activities so they gain firsthand
expertise in how to conduct performance appraisal meetings, set goals with their employees and
assess whether their performance warrants salary adjustments, bonuses or incentives.
==================
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 Performance appraisal instrument (pdf download)
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