Performance appraisal policy and procedure

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I. Contents of getting performance appraisal policy and

procedure
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If you treat performance evaluations as a casual chat with employees to discuss how they're
doing, you may be overlooking an opportunity to improve your business. When you think
through your policies and procedures regarding performance evaluations, you create a road map
for taking your employees from where they are to where you need them to be. This can structure
your evaluations so that they are purposeful.
Frequency
Your policy for performance reviews should designate the dates for each review. For example,
you may set a policy for reviewing employees every three months, six months and one year from
the original date of their employment hire date. This pattern would continue in subsequent years.
Clearly stating your policy in this way lets employees know when to expect an evaluation and
makes supervisors aware of when they must perform their evaluation duties. Your policy may
also state that each evaluation is not necessarily an opportunity for a pay raise.
Translating Company Goals Into Individual Goals
One of your procedures can align company goals with individual objectives. This is done by
stating the company goal and then discussing with the employee how her efforts contribute to
that goal. The evaluator can then help the employee set new goals that will improve her
contribution to the company. This procedure prevents the evaluation process from being only a
backward-looking exercise. It helps the employee realize that individual goals must align with
organizational goals.

Performance Logs
If you make it your policy that supervisors should keep performance logs to track employee
proficiency and growth, you will have strong documentation at the performance evaluation. The
policy can state whether these logs should be updated daily, weekly or monthly. You can also
designate the types of entries you expect, from anecdotal accounts of employee progress to
checklists of specific skills.
Interactive Opportunities
Make a policy that performance evaluations are two-way discussions. You do this by requiring
the procedure of asking questions of the employee. These can range from a request for an
employee to evaluate how well he has met his goals to a response indicating how far the
employee plans to go with the company. Such interaction not only provides useful feedback to a
supervisor, it helps make the employee self-aware and thoughtful.
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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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