Book keeping heads:

The list is as follows:

Business Promotions
Misc. expenses
Professional & Legal Charges
Bank Charges
Communication expenses
Conveyance
Utility Expenses
Salary & Wages
Furniture & Fittings
News & Periodicals
Office equipments
Postage & Telegrams
General office expenses
Printing & Stationary
Repairs & Maintenance
Travel & Transportation expenses
Rent, Taxes & Insurance
Employees Welfare Expenses

MBO Employee Performance Evaluation Form

About this Performance Appraisal Form

This performance plan section is divided into two sub-sections. The first sub-section is where
you rate your employees performance on their major areas of responsibility.
The second component of the performance plan provides an opportunity for you to rate your
employees behavior, often in line with the organizations values.
You will note this form includes a section for managers comments or for a summary of the
employees performance.
The major weakness of this rating method is that most people tend to want more clarity on what
constitutes the difference between each score on the rating scale.
This clarity is easy to provide when you are talking about tangible measure such as meeting a
sales target, for example

Performance

Rating

20% or greater short of sales target

Between 0.01% and 19.99% short of sales target

Meet sales target

Exceed sales target by less than 20%

Exceed sales target by 20% or greater

However, when it comes to intangible measures such as the behaviors it becomes harder to
define the criteria and, if you do invest the time in defining the criteria then you are really not
using this form the way it is intended.

In your dialogue with your employees you should be able to explain your reasons for the rating
you are proposing and you should have examples to support your rating. However, you should
also be open to influence should your employee have examples of performance or behaviors that
you may not have originally considered.
The weakness of the form are openly acknowledge, this rating method does not provide clarity
for the employee on how to improve their performance. However, it is also lower cost to
implement. If you are using this form you should ensure that

You can explain your reasons for each performance score, and

You have examples to support your rating

Different Methods of Performance Appraisal

Rating

Comparison with Objectives

Critical incidents

Narrative Report

Rating
This method lists a number of factors to be assessed such as quality and output of work, which
are then rated on a numerical scale according to level of performance, for example:

outstanding

exceeds requirements of the job

meets the requirements of the job

shows some minor weaknesses

shows some significant weaknesses

unacceptable.

The rating scales method is easy to construct, use and understand. However, it is highly
subjective, there is often a tendency to bunch the ratings around the average point and an overall
impression can influence all the individual assessments.

Comparison with objectives

Under this system, the employee and his/ her manager set objectives at the beginning of the
appraisal period. The subsequent appraisal is based on how far these objectives have been met.
This method is more objective than rating scales because the emphasis is on work achievement.
It can be more participative because it gives employees the chance to agree their objectives and
enables them to carry out a form of self-appraisal.

Critical incidents
Using this method the appraiser is required to record incidents of employees positive and
negative behaviour during a given period. The appraiser is expected to give feedback on this
behaviour when it occurs. This could include appreciation of good performance or to give
counselling to help poor performance. The record of incidents throughout the year forms the
basis of the appraisal report.
This method of appraisal encourages frequent recording and enables employees performance to
be judged on actual incidents rather than on subjective assessments. It also helps to overcome the
problem of annual reporting which can concentrate unduly on events immediately prior to the
appraisal.
The critical incident method can, however, be time consuming and burdensome and it can result
in excessive supervision which may be discouraging for some employees.

Narrative report
This technique requires the appraiser to describe the individuals work performance and
behaviour in his or her own words. The narrative report may take the form of an essay or a
controlled written report, such as answers to certain headings or guidelines. This approach is
sometimes combined with rating scales. Narrative reporting is flexible and can enable the
appraiser to gear the report to specific circumstances.