PERFORMANCE APPRAISAL A performance appraisal is a regular review of an employee's job performance and overall contribution to a company. Also known as an "annual review," "performance review or evaluation," or "employee appraisal," a performance appraisal evaluates an employee’s skills, achievements and growth, or lack thereof. Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual or quarterly.
Need for Performance Appraisal Provide information about the performance ranks. Review of the performance of the subordinates. Provide information that helps to counsel the subordinates. Gets information to diagnose deficiency in employees regarding KSA. To prevent grievance and in disciplinary activities.
Performance appraisal techniques
Rating scales method Rating Scales Method is commonly used method for assessing the performance of the employees and well-known traditional method of performance appraisal of employees. Many corporations and companies example in the country India, telecommunications company likely Airtel and US IT companies like Dell Corporation are using this method for evaluating the employees and subsequently take decisions on concerned employee.
Advantages/disadvantages of Rating Scales
Types of rating scales
Graphic rating scale Graphic rating scales are used in many surveys, they normally consist of four or five rating criteria listed, such as- Unsatisfactory Below expectation Satisfactory Above average Outstanding Companies like DELL, Maruti Suzuki India Ltd and Airtel are using this graphic rating scale method to appraise performance of their employees in there jobs and to take decisions regarding the matters concerned to employees
Uses of graphic rating scale This method is popular because it is simple and does not require any writing ability. The method is easy to understand and use. Comparison among pairs is possible. This is necessary for decision on salary increases, promotion, etc. It is also subjected to rater’s bias while rating employee’s behaviour at job.
Global Rating Method Organizations use a single global rating of overall job performance to evaluate an employee. While this method would be expedient for the employer and may assist with decision such as paying bonus and allocating performance based pay increases, it is unlikely to provide the employee with any ideas on how to improve their performance.
Behaviourally Anchored Rating Scales (BARS) The Behavioural Anchored Rating Scale method is normally used only for the assessment of employee behaviour, for other performance criteria. It aims to assign a score to a range of performance criteria. The BARS method focuses only on observable behaviour and provides examples of this observable behaviour for each score. This makes it easier to have consistent rating across a large organization.
For example when assessing a leader on their passion for people you may consider –
Rating Methods Bias The 5 key rating errors or biases that you will need to be aware of are –