Advantages And Disadvantages Of Performance Appraisal 501l3r

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I. Contents of getting advantages and disadvantages of performance appraisal ================== Your small business's success depends heavily on the performance of your employees. To assess the performance of each employee and provide , it may be necessary to implement a job appraisal system. A periodic appraisal lets the employee know what he is doing well and what needs improvement. Appraisals offer a number of advantages as well as potential disadvantages. Status Reports Many workers like to know where they stand regarding their job performance and their role with a company. A periodic performance appraisal allows you to provide positive as well as identifying areas for improvement. You can also lay the groundwork for a developmental plan so employees can improve their skills. Building Rapport As a business owner, you may not always have time to engage in an extended conversation with your employees. According to the Entrepreneur website, an advantage of an employee performance appraisal is that it allows you to have a candid one-on-one chat with your employees, which can give you a better idea of what makes them tick as well as the chance to build rapport.

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. ==================

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 – Rater’s 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 istration, 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 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 ed by descriptions, is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision; may be too much and may appear to be punishment.

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