What is the purpose of a performance appraisal system

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I. Contents of getting what is the purpose of a performance appraisal system

==================I am sure all organizations have performance appraisal system set up for evaluating employee performances and for their annual appraisals. But have you looked into the performance appraisal system that you have implemented is effective or not? We come across a lot of performance management and appraisal systems with varied features and high price tags. Organizations should understand that performance appraisal systems with varied features are not always effective. Certain characteristics put together will make an effective performance appraisal system.Following are the characteristics of an effective performance appraisal system.

1. Objectives should be clear: The objectives of appraisal should be clear and specific. An effective performance system will always have specific appraisal attributes to match the employees job description. 1. Data should be valid and reliable: An effective performance appraisal system provides data that is consistent, reliable and valid. It supplies data according the objective that serves the purpose of performance appraisal and succession planning.1. Performance criteria should be well defined: Effective performance appraisal has standard appraisal forms, rules and appraisal procedures. It will have well defined performance criteria and standards.1. Economical and less time consuming: Effective performance appraisal systems are designed to be economical and less time consuming to bring maximum benefits.1. Should initiate follow up: A post appraisal talk should be arranged for employees to get feedback from their managers. It also helps the organization to learn about the problems and difficulties the employees might be facing and discover suitable training.

Performance appraisal is one thing that not done properly can harm the organization and the employees by creating conflicts. Organization that has conflicting teams at work can never prosper. Therefore, choosing an effective performance appraisal system is a wise thing to do, and it is now easy with Synergita Software that brings performance management closure to people and business.

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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 Methodi. Employees are ranked according to their performance levels.ii. It is easier to rank the best and the worst employee.Limitations of Ranking Methodi. 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.ii. 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.iii. When a large number of employees are working, ranking of individuals become a difficult issue.iv. 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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