Benefit of performance appraisal

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I. Contents of getting benefit of performance appraisal

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There are many ways in which performance appraisal systems can bring value to your business
or organisation assuming you choose one that is well designed like Actus of course! All
online performance appraisal systems should increase individual and overall performance
through greater clarity and alignment of personal objectives against business goals. However,
Actus takes this a step further as it ensures that the objectives are visible and accessible all
year round and encourages regular review through the milestones and comment functionality.
Most performance appraisal systems can help increase productivity by streamlining paper based
processes and providing faster reporting. However, again Actus stands out from other
performance appraisal systems as it has an open design which gives greater visibility and
empowers managers and individuals to take control of the annual appraisal process, reducing the
workload for HR and increasing accountability and buy-in by the end users.
Unlike other performance appraisal systems, Actus has been designed to encourage
meaningful year round performance conversations which increases employee engagement which
is a business benefit in its own right. In fact many of our clients have introduced Actus as the
foundation of their employee engagement or organisational development strategy and we would
be happy to talk to you about this if you would like to get in touch.
Actus reaches the parts that other performance appraisal systems dont as it has also been
designed to increase compliance and reduce risk through better documentation of all
performance management processes through the 1 to 1, performance improvement appraisal and

recording of key qualifications. This allows organisations to demonstrate adherence to process

and provides increased compliance.
Although, many of these benefits result from our intelligent design and key features which act as
a catalyst for culture change, we know that performance appraisal systems alone cant deliver
these benefits. This is why we partner with each organisation, helping them to implement the
system successfully and guide the cultural transition. This is where the real organisational
benefits arise.
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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.

III. Other topics related to Benefit of performance appraisal

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