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Performance appraisal best practices

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I. Contents of getting performance appraisal best practices


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Engagement is a personal equation, and managers must play a role in helping each employee
solve it. Your best managers already understand this. Theyre not waiting for survey data to
shape what they do. They dont make engagement a once-a-year priority, distinct from what they
do the rest of the time. They always manage their teams with an eye toward results and
engagement.
How do they do it? Dialogue. Sounds pretty simple: if you manage employees, you need to talk
to them. Yet manager-employee conversations are more of a myth than a best practice in a
majority of organizations. Many managers sheepishly acknowledge that they should have more
regular sit-downs with their individual team members, but a variety of excuses (e.g., "Not
enough time," "Mired in my own work," "Never get around to it") stand in the way. That is too
bad, because dialogue is at the heart of high engagement and sustainable performance.
So rather than investing your time and resources in driving manager compliance with check-thebox corporate-driven online engagement action plans, get your managers talking to their people.
The Performance Appraisal
This discussion should be on every managers list already and is likely to be the only
conversation that is happening with any consistency or regularity. Unfortunately, it is often seen
as an HR-driven task that fills many managers and employees with dreadand does little to
actually fuel high performance.

The performance appraisal is primarily about what employees need to deliver to drive the
organizations success. Its an opportunity to review results, provide feedback on how results
were achieved (if your performance management systems includes competencies or
organizational values), and confirm expectations. Its also the time to talk about any development
needed to achieve even greater success in current roles and upcoming projects.
We have seen managers tackle these conversations with a variety of stylesfrom meek conflictavoidance to the back-of-the-head-with-a-two-by-four. But one thing routinely lacking from
performance appraisals is this: how do we build the "success connection"namely, how do we
figure out how best to put your passion and talents to work for the greatest contribution to the
organization?
Although performance appraisals appropriately focus on maximum contribution the
organizations side of the engagement model), the greatest performance improvement results
when an individuals personal motivators, interests, and talents are taken into account.
Yet rarely do performance appraisals address those elements. When they do, they come in at the
end of the conversation with a perfunctory question such as, "Where do you want to grow next
year?"
Some appraisals run out of time before that topic comes up, and lets be honest: during the
performance appraisal your employees arent thinking about their satisfaction or development.
Theyre waiting to hear answers: What are my ratings or rankings? How much, if anything, will
my merit increase be? Have I earned my full bonus?
So rather than trying to reengineer your performance appraisal discussion to tap into personal
engagement drivers of employees, we suggest that you make sure

Your appraisal process drives clarity of priorities and expectations and provides fair and
useful performance feedback.
Your managers understand that performance feedback should be immediate and yearround (even though theyre being monitored just once a year).
You hold your managers accountable for addressing performance problems with clear
action steps like performance improvement plans.
Encourage and train your managers to talk with their teams the rest of the yearin career
coaching conversations, onboarding discussions, and engagement reviews.

The Career Coaching Conversation

The career coaching conversation is more about what employees want. Although it is heavily
weighted toward the individuals side of the engagement model (maximum satisfaction), career
development must happen in the context of the business: your employees personal aspirations
need to be fulfilled while simultaneously addressing organizational needs. You dont really want
your employees pursuing their career agendas and building their skill sets for future
employability on your payroll without regard to your needs, do you? Career coaching is the
perfect opportunity to align your interests with their passion and aspirations.
Many of the managers weve talked to fear career conversations more than performance
appraisals. Worries abound: What is the employee looking for? What jobs are actually available?
What if I dont have the answers? How will the team fare if this person takes another job down
the hall? The result: conversations dont happeneven in those organizations that boast the
common mid-year development/career conversation in their performance management process.
Yet career development is a top reason your employees will leave. For the purposes of this
discussion, lets consider the conversations that need to take place to help equip employees for a
promising, satisfying future with your organization.
Career Coaching Tips
The goal of managers in career discussions is to support not control. That means it is more
important to ask good questions than have all the answers. Its about helping employees clarify
what they want, build on strengths, address career liabilities, identify development opportunities,
network within the organization, and take control of their career success.
==================

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.

III. Other topics related to Performance appraisal best


practices (pdf, doc file download)
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