Performance appraisal of employees

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I. Contents of getting performance appraisal of employees

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Performance appraisal is one of the most dreaded and hated process for managers and
employees. There has been a movement to abolish performance appraisals altogether because
they simply do not work. Companies still use the archaic annual performance reviews because
they do not know what else to do. I have dealt with different types of performance appraisals and
have never appreciated going through the process. Here are 7 reasons why I hate them.

1. Managers simply do not know their employees.

I have worked at many jobs where I would rarely be on the same shifts as my managers. How
can you assess an employee when you cannot directly observe their behaviours and
performance? As an employee, I did not have a platform where I can log in every task I did on
my shift. It became difficult for me to be open for feedback when my manager obviously did not
keep track of my progress. Although 360 feedback is a good tool to gather information, I believe
that a manager should be up-to-date with their employees performance rather than relying on
others to know how their employees are performing.
2. Managers are not trained properly.
The idea behind performance appraisals is to have a 1-on-1 discussion with your employees to
talk about how they did and how they can perform better. Instead, managers are provided with a
standardized format of what they need to ask and how to assess each employee. The problem is

that a standardized process assumes that every employee is the same. Managers are not given
enough support on how to deal with a wide range of emotional responses. When performance
appraisals go wrong, it creates a negative relationship between the managers and the employees.
Managers do not know how to follow up with the employees without causing further animosity.
Employees perceive performance appraisals as a punishment.
3.There is a thin line between person and performance appraisals.
My biggest problem with performance appraisals is that a session can turn personal very fast.
Managers go on a tangent when they do not know how to conduct a proper performance
appraisal. They start to evaluate the employees characteristics and behaviours, instead of their
work performance. I remember an old manager giving me constructive feedback on my
grumpiness during a performance appraisal. The fact that I was grumpy in the morning once
never affected my performance at completing my tasks and delivering results. I would be more
open to the feedback if she took me aside on the spot and talked to me about my grumpiness,
than wait for the end of the year to bring it up. It is hard to distinguish whether you are been
assessed for the final result you deliver or the effort you put into delivering your performance.
4. The process is time consuming for managers.
Managers are left on their own to collect the information needed to conduct the performance
appraisals. They need to keep track of what each employee has done, how well they have
performed, and other factors that may affect their performance. There is a high anxiety level for
the managers as they have to figure out how to objectively rate the employees fairly and
consistently. Managers see performance appraisals as being a burden. Their lack of interest
affects employees as the performance appraisals become a formality to get the appropriate
information to fill out the necessary forms. Employees get nothing out of the performance
appraisals other than their total ratings for their annual performance.
5. Performance appraisals create an atmosphere of high anxiety and stress.
Many companies conduct an annual performance appraisal with no in-between coaching
sessions. Employees walk in the meeting without having any idea on their performance. They
have not received feedback from their managers throughout the year and have not gotten any
opportunities to improve. Being in the unknown makes employees nervous and very defensive. It
is even more demoralizing when the outcome of the performance appraisals is linked to your
compensation. An increase in wages is in the hands of how much the manager remembers about
your performance. People get sensitive when their salaries are being altered at someones
discretion.
6. Communication during performance appraisals is one way.

Every performance appraisal I have had was always management-driven. I had no say in their
ratings of my performance and was not welcomed to share my feedback to them. It was a oneway street where my only role in the performance appraisal was to accept whatever the manager
has decided for me. It was disheartening to not being able to contribute to the discussion.
Feedback for managers was anonymous which leads to a one-way process again. I see the lack of
transparency as being hypocritical.
7. Performance appraisals are subjective
Companies create different rating systems with the hope that these tools will help the
performance appraisals to become more objective. Many uses the Behaviorally Anchored Rating
Scale (BARS) where an example is provided for each rating. The examples are used as a
benchmark for managers to decide how to rate their employees. It is still left to the managers
discretion when an employees performance is ambiguous. Different interpretations of the rating
scale and performance make the process subjective. Using a rating system does encourage
objectivity, but employees motivation decreases when their contributions become quantified.

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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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