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employees should understand the company policy on raises and the purpose of annual
performance reviews.
Management personnel typically determine if performance appraisal objectives aim to reward or
correct employee behavior. They also identify training programs needed to help employees meet
defined goals and make objectives meaningful. Open communication, especially when
parameters of the job review process change, helps ensure workers understand reasons for
evaluations.
Some companies include the employee in the process used to set goals. This gives each staff
member a chance to discuss personal circumstances that might hinder success. For example, an
employee dealing with a critically ill parent might want to discuss attendance goals. Problems
with a difficult coworker might also affect the workers attitude about the job. He or she might
suggest training methods used to improve performance and the benefit or lack of benefit of these
programs.
Some companies use performance appraisal objectives to increase the volume of production and
improve profits. Goals set for individual employees might allow them to use initiative to devise
ways to increase production without sacrificing quality or accuracy. Managers might set goals for
an individual project and review performance upon completion.
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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.
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