Online performance appraisal system

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I. Contents of getting online performance appraisal system

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As employee evaluation software and online tools become more available and affordable, youre
more likely to find yourself running into them as a manager during your career. Electronic
performance appraisals provide a number of advantages and disadvantages for both supervisors
and employees, and understanding some of the more common ones will help you make the best
decision as to which one is right for your department or company.
Performance Appraisals
As you consider using an electronic performance appraisal, its important to determine what you
want out of an employee review. If youre looking to promote one of several employees and rank
them, you might want more objective data. If youre performing a year-end review for a single
employee, you might want to include more personal observations to solve problems or promote
growth. Appraisals should include a supervisor to objectively rate or rank an employees
knowledge, productivity and job results. They should also evaluate interpersonal and
communications skills. An appraisal should also provide suggestions for areas of improvement.
Electronic Appraisals
Electronic appraisals include tools supervisors can use to evaluate workers based on a variety of
criteria and allow the user to rank different categories using an objective system. They can be
part of a company intranet or served on a software program the user fills out. The programs can
reside on one computer in the human resources office or allow users to login from their own
computers, with access terminated once the form is filled out for privacy and security. In its most
primitive form, an electronic performance appraisal can be created and delivered using email.

Advantages
Electronic performance appraisals allow a company to use one rating system for all employees,
putting all the forms into a main database that allows the business to rank or cross-reference
employees. They might be quicker to fill out than a paper form, which can require having a
supervisor answer questions from a human resources team member. Depending on the program,
the appraisals can be customized by each company, including adding text boxes for employees
and supervisors to leave explanations and notes. If necessary, authorized personnel can access
this data 24/7 if the company uses a Cloud-based storage system or keeps them on their website
or server. When delivering performance appraisals face-to-face, supervisors might be less willing
to be negative and confrontational, according to researchers Kurtzberg, Nauqin and Belkin, citing
studies that showed managers were more negative when creating electronic appraisals. This
willingness to be more critical can lead to more honest, detailed and useful appraisals.
Disadvantages
Electronic performance appraisals are impersonal, especially if the employee receives the results
on her computer with no face-to-face explanation from a supervisor. Without this personal
interaction, a critical rating can seem much worse than the reviewer intended, or alternatively, a
serious problem might not come across that way to an employee. Electronic performance
appraisals leave a paper trail that can be subpoenaed if theres a lawsuit, and if company files are
hacked, the possible resultant data-sharing could lead to an invasion of privacy and create
liability for the company that administered and kept them.
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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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