An Ideal Performance Evaluation System Commerce Essay

“ Most folks scoff at the thought that there might be a perfect system for making employee public presentation assessment. They think that since their organisation is “ alone, ” so their system for analysing employee public presentation must be alone, excessively. How foolish.

Do n’t jeer – there is an ideal method for the appraisal procedure. In administrations that take employee public presentation assessment earnestly and utilize the procedure good, the system maps as an ongoing procedure – non simply an one-year event. ”

– Dick Grote

1. Among Performance Appraisal experts, there is a important sum of understanding that there is an ideal rhythm that, if followed, will by and large bring forth superior consequences 1. The distinguishable stages or the figure of stairss of this rhythm, nevertheless, varies across the literature available. While Dick Grote identifies four distinct phases2, Stephen P Robbins 3 lineations six different stairss. Back place in India, direction expert, Subba Rao 4 divides the rhythm into nine stairss. Before showing an ideal public presentation rating system, it is of import to reexamine the assorted methods or techniques that have been developed along with the development of appraisal systems. A few of the of import 1s are outlined in the succeeding paragraphs.

Methods and Techniques for Appraisal

2. Graphic Rating Scales. This is the simplest and most popular method for measuring public presentation and offers a high grade of structure.5. It compares single public presentation to an absolute criterion, with each employee trait or characteristic rated on a bipolar graduated table that normally has several points runing from “ hapless ” to “ first-class ” ( or some similar agreement ) . The supervisor rates each subsidiary by circling or look intoing the mark that best describes his or her public presentation for each trait. The assigned values for the traits are so totalled. The traits assessed on these graduated tables include employee properties such as cooperation, communications ability, enterprise, promptness and proficient ( work accomplishments ) competency. The nature and range of the traits selected for inclusion is limited merely by the imaginativeness of the graduated table ‘s interior decorator, or by the administration ‘s demand to cognize. The one major proviso in choosing traits is that they should be in some manner relevant to the appraisee ‘s occupation. The traits selected by some administrations have been unwise and have resulted in legal action on the evidences of discrimination.6

3. Advantages. The following are the advantages of following this system: –

( a ) Graphic Rater Scales are structured and standardised. This allows evaluations to be easy compared and contrasted – even for full work forces. Each employee is subjected to the same basic assessment procedure and evaluation standards, with the same scope of responses. This encourages equality in intervention for all appraisees and imposes standard steps of public presentation across all parts of the organization.7

( B ) Rating scale methods are besides really simple to utilize and understand. The construct of the evaluation graduated table makes obvious sense ; both valuators and appraisees have an intuitive grasp for the simple and efficient logic of the bipolar graduated table. The consequence is widespread credence and popularity for this attack.

4. Disadvantages. The major drawbacks of the evaluation graduated table have been discussed below: –

( a ) Trait Relevance. The traits selected may non be relevant in the same grade across all occupations of the appraisees. For illustration, the trait “ instructional ability ” might non be really of import in a occupation that is tightly defined and stiffly structured. In such instances, a low assessment evaluation for the same may non intend that an employee lacks the ability. Rather, it may reflect the fact that an employee has few chances to utilize and expose that peculiar trait.

( B ) Systemic Disadvantage. Rating graduated tables, and the traits selected, by and large attempt to supply an overall appraisal standards or criterion for the apraisees. There is an premise that all the possible indexs of public presentation are included, and all false and irrelevant indexs are excluded. This is an premise really hard to turn out in pattern. It is possible that an employee ‘s public presentation may depend on factors that have non been included in the selected traits. Such employees may stop up with evaluations that do non genuinely or reasonably reflect their attempt or value to the organisation. Employees in this category are systemically disadvantaged by the evaluation graduated table method.

( degree Celsius ) Perceptual Errors. This includes assorted well-known jobs of selective perceptual experience ( such as the horns and halos consequence ) every bit good as jobs of sensed significance. Selective perceptual experience is the human inclination to do private and extremely subjective appraisals of what a individual is “ truly similar ” , and so seek grounds to back up that position ( while disregarding or understating grounds that might belie it ) . 8 In other words, we see in others what we want to see in them. An illustration is the supervisor who believes that an employee is inherently good ( halo consequence ) and so ignores grounds that might propose otherwise. On the other manus, a supervisor may hold formed the feeling that an employee is bad ( horns consequence ) . The supervisor becomes unreasonably rough in their appraisal of the employee and ever ready to knock and sabotage them.

( vitamin D ) Perceived Meaning. Problems of sensed significance occur when valuators do non portion the same sentiment about the significance of the selected traits and the linguistic communication used on the evaluation graduated tables. For illustration, to one valuator, an employee may show the trait of inaugural by describing work jobs to a supervisor. To another valuator, this might propose an inordinate dependance on supervisory aid – and therefore a deficiency of enterprise.

( vitamin E ) Rating Mistakes. The job here is non so much mistakes in perceptual experience as mistakes in valuator opinion and motivation. Unlike perceptual mistakes, these mistakes may be ( at times ) deliberate. The most common evaluation mistake is cardinal inclination. Busy valuators, or those wary of confrontations and reverberations, may be tempted to dole out excessively many inactive, centrist evaluations ( e.g. “ satisfactory ” or “ equal ” ) , irrespective of the existent public presentation of a subsidiary. Thus the spread of evaluations tends to clop overly around the center of the graduated table. This job is worsened in administrations where the assessment procedure does non bask strong direction support, or where the valuators do non experience confident with the undertaking of assessment.

5. Ranking Method. Ranking employees from best to pip on a trait or traits is another option. Since it is normally easier to separate between the worst and best employees, an alternation ranking method is most popular. First, list all subsidiaries to be rated, and so traverse out the names of any non known good plenty to rank. Then, on a signifier indicate the employee who is the highest on the characteristic being measured and besides the 1 who is the lowest. Then take the following highest and the following lowest, jumping between highest and lowest until all employees have been ranked. 9

6. Paired Comparison Method. In this method all possible braces of employees are formed.10 The judge indicates which single in each brace is a better performing artist. An employee ‘s rank is determined by the figure of times he or she is chosen as the better performing artist in a brace. The individual chosen most frequently is ranked foremost. Use of this method requires the comparing of many braces even when the entire figure of employees is non really big. This method helps to do the superior method more precise, though it is more complicated than consecutive ranking.

7. Checklist Methods. The checklist is a simple evaluation technique in which the supervisor is given a list of statements or words and asked to look into statements stand foring the features and public presentation of each employee. There are three types of checklist methods viz. , simple checklist, weighted, and forced pick method.

( a ) Simple Checklist. The checklist consists of a big figure of statements9 like “ is he punctual ” or “ is his behavior gracious ” etc. The rater cheques to bespeak if the behavior of an employee is positive or negative to each statement. Employee public presentation is rated on the footing of figure of positive cheques. The negative cheques are non considered. A trouble may originate because the words or statements may hold different significances to different raters.

( B ) Weighted Checklists. This involves burdening different points in the checklist, to bespeak that some are more of import than others. The public presentation evaluations are multiplied by the weights of the statements and the coefficients are added up. The leaden public presentation mark is compared with the overall appraisal criterions to happen out the overall public presentation of the person. However, it is expensive to plan, and clip consuming. Though this method is appraising every bit good as developmental, it has the basic job of the judge non cognizing the points which contribute most to successful public presentation.

8. Critical Incident Method. With this method the supervisor keeps a log of positive and negative illustrations ( critical incidents ) of a subsidiary ‘s work related behaviors. Every six months or so, supervisor and low-level meet to discourse the latter ‘s public presentation, utilizing the incidents as illustrations. This method has several advantages. It provides illustrations of good and hapless public presentation the supervisor can utilize to explicate the individual ‘s evaluation. It makes the supervisor think about the subsidiary ‘s assessment all during the twelvemonth ( so the evaluation does non merely reflect the employee ‘s most recent public presentation ) . The list provides illustrations of what specifically the subsidiary can make to extinguish lacks. The downside is that without some numerical evaluation, this method is non excessively utile for comparing employees or for salary determinations. Besides it is clip devouring for the judges, and it may be difficult to quantify or construction the incidents into a concluding narrative rating.

9. Try or Free Form Appraisal. This method requires the trough to compose a short essay depicting each employee ‘s public presentation during the evaluation period. This format emphasises rating of overall public presentation, based on strengths/weaknesses of employee public presentation, instead than specific occupation dimensions. The downside is the clip involved, there is no common criterion, and the essay composing accomplishments may be unequal with different judges.

10. Group Appraisals. Under this an employee is appraised by a group of valuators, dwelling of the immediate supervisor, other supervisors who have close contact with the employees work, directors or caputs of section and advisers. The group appraises the public presentation based on comparing with set criterions, finds out divergences, discusses grounds thereof and suggests ways to better public presentation. This method is widely used for intents of publicity, demotion and retrenchment assessment.

11. Assessment Centre. This method was foremost developed by the German ground forces in1930. This is non a technique of public presentation assessment by itself but is a system, where appraisal of several persons is done by assorted experts, utilizing assorted techniques. Persons from assorted sections are brought together to pass two or three yearss working on an person or group assignment similar to the 1s they would be managing when promoted. Perceivers rank the public presentation of each participant in order to deserve. All assesses get an equal chance to demo their endowments and capablenesss and secure publicities based on virtue. The Centre besides enables persons working in low position sections to vie with people from good known sections and heighten their publicity opportunities.

12. Management by Aims. MBO requires the director to put specific mensurable ends with each employee and so sporadically discourse the latter ‘s advancement toward these ends. The term MBO by and large refers to a comprehensive and formal administration broad end scene and appraisal plan consisting of six stairss:

( a ) Set the administration ‘s end.

( B ) Set departmental ends.

( degree Celsius ) Discuss departmental ends

( vitamin D ) Define expected consequences and set single ends

( vitamin E ) Performance reappraisal.

( degree Fahrenheit ) Provide feedback.

13. There are three jobs with MBO:

( a ) Puting ill-defined ends

( B ) It is clip devouring

( degree Celsius ) Puting aims with the subsidiary turns into a jerk of war with the direction forcing for higher aims and the subsidiary forcing for lower 1s.

The Ideal Performance Appraisal Cycle

14. Advisers who help administrations make effectual public presentation assessments, academicians who study the public presentation assessment procedure, human resource directors, and organizational development practicians with companies that have successfully developed their ain public presentation assessment systems come to the same decision: public presentation assessment does n’t get down with the signifier, it starts with the occupation

– planning what needs to be done and calculating out how it will be accomplished. 11

15. An organizational scheme is a requirement for developing an overall public presentation direction system. Before any appraisal of an person ‘s public presentation can be made, the administration ‘s way must be clarified and communicated. Until the end of the administration has non been decided, it would be bootless to make up one’s mind the ends for single units or the worker ‘s public presentation appraisal criterions. Authoritative MBO ( Management by aims ) theory, the nucleus doctrine behind most successful assessment systems, begins with the demand that the administration formulate long term ends and strategic programs. These programs lead to overall organizational aims and the procedure continues downward to derivative aims for single units and subdivisions, boulder clay every member of the administration has specific and mensurable aims in consonant rhyme with the ends of the administration. Once an understanding is reached between the supervisor and the subsidiary on the occupation particulars, the following measure is to realize it, followed by the assessment, sooner by both the valuator and the appraisee. The reappraisal of the public presentation is done in a face to confront meeting. Thereafter the procedure begins afresh. Thus the ideal public presentation assessment rhythm can be divided into four stages: –

16. The Evaluation Process. The rating procedure involves: –

( a ) Performance Planning. An administration must hold its mission clearly defined prior to set abouting the public presentation assessment procedure. If the org does non hold a specific way, powerful attempts on the portion of its members wo n’t supply consequences. At the clip that a occupation is designed and a occupation description formulated, public presentation criterions should besides be developed for the place. These criterions and aims should be clear and adequate to be understood and measured. Obscure phrases should non be used to specify the criterions. 12

( B ) Communicate Performance Expectations to Employees. The valuator and the appraisee meet to be after for the approaching twelvemonth. In the treatment, they come to an understanding about five major countries: –

( I ) The cardinal answerabilities of the subsidiary ‘s occupation i.e. the major countries within which he is responsible for acquiring consequences.

( two ) The specific objectives the subsidiary will accomplish within each answerability country

( three ) The criterions that will be used to measure how good the subsidiary has achieved each aim.

( four ) The public presentation factors, competences etc that will be critical in finding how the consequences will be achieved ( how he will carry on the occupation ) .

( V ) The elements of the development program the low-level shall finish during the twelvemonth.

17. This treatment generates an improved employee public presentation as he knows precisely what is expected of them. Furthermore, the valuator can now keep the appraisee accountable.

18. Employee Performance Execution. Over the class of the twelvemonth, employee public presentation should be focused on accomplishing the ends, aims and cardinal duties of the occupation. The superior provides aid and feedback to the person so as to increase the chance of success and creates conditions that motivate and besides decide any jobs that may originate.

19. The valuator and the appraisee meet sporadically to reexamine advancement toward the programs and ends discussed in the employee public presentation planning meeting. The appraisee must seek out a feedback and the needed counsel for the hereafter. Besides elements of the program that have become disused are abandoned by common understanding and new aims to react to altering conditions are established.

20. Employee Performance Assessment. At the clip for the formal employee public presentation assessment, the valuator reflects on how good the subsidiary has performed over the class of the twelvemonth, assembles the assorted signifiers and paperwork that the organisation provides to do this appraisal, and fills them out. The Appraiser and appraisee independently measure the grade to which the different elements of the one-year program were achieved. The valuator completes an appraisal of the subsidiary ‘s public presentation and typically has it reviewed and approved by senior direction before discoursing it with the subsidiary. In an ideal system, the subsidiary besides completes a self appraisal, roll uping informations, if necessary, from equals, subsidiaries, and others. The subsidiary may subject the ego assessment to the valuator to be used as a portion of his overall appraisal.

21. Employee Performance Review. The valuator and the low-level meet, to reexamine their assessments. They discuss the consequences that were achieved and the public presentation factors that contributed to their achievement. The treatment includes:

Consequences achieved ( what was done ) .

Performance or behavioral effectivity ( how it was done ) .

Overall public presentation appraisal.

Development. At the terminal of the reappraisal meeting they set a day of the month to run into once more to keep an employee public presentation planning treatment for the approaching 12 months, get downing the procedure anew.

22. This public presentation assessment procedure non merely transforms employee public presentation direction from an one-year event to an ongoing rhythm, it besides tightly links the public presentation of each member with the mission and values of the administration as a whole. The existent value of the system is in concentrating everyone ‘s attending on what is truly of import i.e. the accomplishment of the administration ‘s strategic ends through presentation of the administration ‘s vision and values in each employee ‘s daily behavior.

23. In the best-run and most efficient administrations, employee public presentation assessment is a critical and vigorous direction tool. No other direction procedure has every bit much influence on persons ‘ callings and work lives. Employee public presentation assessment can concentrate each individual ‘s attending on the company ‘s mission, vision and values. Besides ideally, the procedure can reply the two cardinal inquiries that every individual individual in the organisation wants the replies to: What do you anticipate of me? And how am I making?


1. Richard C Grote “ Complete usher to appraisal systems ”

2. Dick Grote “ htpp//ezine ”

3. Stephen P Robbins “ Management of Human Resources ”

4. Subba Rao “ Personnel/human Resource Management ”

5. Archer North “ Performance assessment systems ; ”

6. Ibid p8

7. Ibid p8

8. Ibid p10

9. Subba Rao “ Personnel/human Resource direction ”

10. Fisher, Schoenfeldt, Shaw “ Human resource direction ” .

11 Richard C Grote “ Complete usher to appraisal systems ”

12. Archer North “ Performance assessment systems ; ”