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Performance Appraisal Types
Performance Appraisal Types
Performance Appraisal Types
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A formal approach includes documentation and a structured format. The performance appraisal
form used contains specific performance standards. A graphic rating scale or management by
objectives performance method is probably best suited for the formal approach to evaluating
employee performance. A graphic rating scale provides quantitative measurement of an
employee's performance. Management by objectives, or MBOs, can serve as a checklist for
accomplishing employee goals that are aligned with organizational goals. MBOs can provide
quantitative and qualitative measurement of an employee's performance. A formal approach
lends itself to precision and a greater possibility for accuracy. In addition, the clear lines
established by this approach make documentation an easier task. The September 1999
"Entrepreneur" magazine article titled "Creating Effective Performance Appraisals" states: "It is
common knowledge that most managers and employees find participating in formal performance
appraisals as appealing as having a root canal. However, it is also true that -- for better or worse
-- formal performance appraisals are an inescapable part of organizational life." For this reason, a
formal approach to evaluating employees may be best suited for large organizations.
Informal/Formal Blended Approach
Striking a balance between an informal and a formal approach can involve an employee selfevaluation in addition to the supervisor rating. In a blended format, both the employee selfevaluation and supervisor evaluation are given equal weight in a final determination for overall
rating and merit increase. When asked to evaluate their own performance, many employees are
able to do so in an objective manner. If the supervisor also is capable of using objectivity in
rating the employee's performance, the two components should be very similar. When there's a
wide distance between the employee's evaluation and the supervisor rating, a candid discussion
and documentation to support each side can result in a mutually agreeable evaluation. The
University of Vermont encourages employee and supervisor participation in performance
appraisals, stating: "Let the employee feel he/she has some ownership of the appraisal process by
showing ideas and comments are welcomed by management. This helps the employee believe
the performance appraisal is a constructive activity and not one-sided."
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1. Essay Method
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
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