How to conduct a performance appraisal

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I. Contents of getting how to conduct a performance appraisal

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Earlier this year, I saw a Washington Post headline that said, Study finds that basically every
single person hates performance reviews. Im sure we all understand why. No one likes negative
feedback. We all want a good pay increase. Truth is, performance reviews dont have to be a
dreaded activity.
No one should go to a performance review meeting without already knowing about their
performance. Managers are responsible for telling employees the company performance
standard. They should also be providing regular coaching and feedback to employees regarding
their performance. So, the meeting shouldnt be a surprise.
The performance review meeting is a formal conversation based upon the informal conversations
that have happened prior. The goal is to make the meeting productive and produce outcomes that
benefit both the employee and the company.
1. Establish the purpose of the performance review meeting conversation
You already know the performance information that you will be discussing with the employee.
Thats not really the purpose. The purpose is this:
It might be to discuss the employees future opportunities within the department. Or a specific
skill you would like the employee to master. Regardless, think of the overall theme youd like the
discussion to take.

2. Outline your agenda for the meeting. And ask the employee for their agenda as well
A performance review meeting is not a one-way conversation. Employees often save discussions
about their career for these meetings. Im a big fan of having a discussion with the employee
prior to the performance review meeting.
I use this pre-meeting to set a date for the conversation, give the employee their last review, ask
the employee to do a self-review and find out their goals for the meeting. This allows the
employee to come to the meeting equally prepared.
3. Review the relevant parts of the performance review form. Discuss challenges and
successes.
Use the meeting to cover the highlights of the performance review form. Discuss any ongoing
challenges and brainstorm ways to solve those issues. In addition, ask the employee to share their
successes.
The success information is valuable not just as a form of recognition. The employee has solved a
problem. If you are ever in a similar situation or another employee is facing the same problem,
you have a proven solution to share.
4. Discuss ideas for development/action plan
This should be a significant portion of the meeting. While reviewing the performance review
form is important, on some level both you and the employee know what it says. The form
represents the past behaviors and incidents that have already happened.
This portion of the discussion focuses on the future. Find out what goals and plans the employee
has for their career. Discover if the employees plans and the companys plans are in alignment
or very different. Talk about the skills and experience needed for the employee to accomplish
their career goals.
5. Agree upon specific actions to be taken by each of you
Both the manager and the employee should leave the meeting with items on their to-do list. The
lists do not have to be long and they do not have to contain an equal number of items. The goal is
to have a written action plan that is achievable and valuable to both parties including deadlines.
6. Summarize the performance review meeting conversation and express support
Wrap-up the conversation by recapping the key discussion points, thanking the employee for
their participation, and showing your support for the employee. One other thing Id suggest ask
the employee to give you some feedback. Find out if youre providing valuable support. Ask for
suggestions on ways you can improve as a manager.

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III. Performance appraisal methods

1. 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.

2. 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.

3. 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 Raters biases

4. 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

5.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
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
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.
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.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. 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.

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