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Identifying Opportunities
During the appraisal process, you may discover that the employee possesses a specific skill or
has an interest in an important aspect of your business such as marketing or management. As a
result, you may be able to reassign the employee to a role where she offers more value to your
business.
Using Valuable Time
A possible disadvantage of performance appraisals is that they use up precious time.
You'll need to take the time to prepare for the appraisal as well as actually conduct it. It
also means downtime for your employees, resulting in lost productivity.
Potential for Inaccuracy
To conduct a fair and accurate performance appraisal, you'll need to keep accurate records
and documentation throughout the appraisal period. If you're not in the habit of making
notes when an event occurs, it can be easy to forget about the incident or record it at a later time
when your memory isn't as fresh. As a result, you may judge your employees unfairly.
Different Interpretation
According to the Mind Tools website, a disadvantage of the performance appraisal is that you
and your employee may have a different interpretation of the appraisal's outcome. What
you perceive as a chance to point out areas for improvement may instead result in your employee
feeling that the appraisal was nothing more than a "chewing out" session, causing reduced
morale.
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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