The document discusses the advantages and disadvantages of performance appraisals. It notes that some key advantages include providing objectivity in evaluating employees, motivating employees to improve, and providing early warnings for underperforming workers. However, it also discusses drawbacks such as the time consuming nature of appraisals and potential negative impacts on office dynamics. The document also provides an overview of several common performance appraisal methods and lists additional related topics.

1. Performance appraisal advantages
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I. Contents of getting performance appraisal advantages
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Performance appraisals are an important tool for many businesses and organizations. They give
supervisors an opportunity to evaluate employees and identify problem areas. Performance
reports are useful in developing long-term business plans. However, despite the advantages to
completing them, there are certain drawbacks that employees and supervisors should be aware
of.
Objectivity
One of the advantages of a performance evaluation is the objectivity with which supervisors
analyze employees. Most appraisals result in a numerical value for each worker, and this can be
more useful in charting progress than infrequent, informal evaluations. These metrics also allow
administrators to rank employees in terms of value in certain areas, so that decisions about
promotions or layoffs won't allow for personal relationships to lead to bad business decisions.
Motivation
Performance reports give employees motivation, both in terms of working toward a better
evaluation in the future and receiving tangible positive feedback for past accomplishments.
Employees who work hard and see their appraisals improve may feel as though they are being
recognized properly and will desire to continue to perform this way in the future.
Warnings

2. Evaluations also have the advantage of providing an early warning to an employee whose
performance falls short in certain areas. Before a worker's productivity degrades to the point of
threatening the job, a formal meeting about accomplishing work duties may point out problem
areas and include suggestions for improvement.
Time Consumption
One of the disadvantages of performance evaluations is the fact that they are often very time
consuming. Managers and supervisors spend a great deal of time completing the forms and
meeting with employees to explain the results. These are hours, or sometimes days, that
otherwise could be spent doing productive work, especially in the case of employees who are
already performing to their potential and have less to gain from the evaluation process.
Office Dynamics
Performance evaluations may have a negative impact on office dynamics. While employees may
be trained to work as a team, this can become difficult if an employee feels that there has been an
unfair evaluation given. Negative reports may breed resentment among coworkers with lower
evaluations or cause them to develop antagonism toward the supervisors who assessed their
work.
Misdirection
Performance reports may cause employees to complete certain duties for the sole purpose of
receiving a better evaluation rather than to contribute to the overall direction of the business. In
order to have job security, workers may become overly concerned with improving in areas where
they have scored poorly, even to the detriment of the areas in which they formally excelled.
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III. Performance appraisal methods
1.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
i. Employees are ranked according to their performance

3. levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. 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.
2. 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
3. Checklist method

4. 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
4. 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.
5. Essay Method

5. 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.
6. 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.
III. Other topics related to Performance appraisal advantages (pdf download)
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