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3

4

To determine the effectiveness of employees and to rate them based on their performance and attitude towards work.

To decide about Promotions and Incentives.

To assess the training needs of the employees.

To decide upon a pay raise.

To let the employees know where they stand in so far as their performances are concerned.

To get feedback from the employees.

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6

The RANKING METHOD consists of listing all employees from highest

to lowest in performance.

An employee is compared with all other employees in the group and

placed in a simple rank order.

The primary drawback of the ranking method is that the size of the

differences among individuals are not well defined.

Ranking becomes difficult if the group to be ranked is very large.

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EMPLOYEE RANK

A 2

B 5

C 1

D 4

E 3

An employee is compared with every other employee, one at a time.

And then the number of times that employee is better than others is

determined.

Number of Pairs = 𝑵(𝑵−𝟏)

𝟐

If N = 5, Number of Pairs = 10.

If N = 50, Number of Pairs = 1225.

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A B C D E + ves Rank

A X + - + + 3 2

B - X - - - 0 5

C + + X + + 4 1

D - + - X - 1 4

E - + - + X 2 3

Column

Row

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Employee name__________ Dept.________

Rater’s name ____________ Date________

--------------------------------------------------------------------------------------------

Excellent Good Acceptable Fair Poor

5 4 3 2 1 _

1) Dependability

2) Initiative

3) Overall output

4) Attendance

5) Attitude

6) Cooperation

TOTAL SCORE =

10

The method assumes, the performance levels of employees in a group

follows Normal Distribution.

The ratings of employees‟ performance are distributed along a Bell-

Shaped Curve (Normal Distribution Curve).

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A Checklist is a list of statements that describe the worker and his behavior.

Each statement is assigned a weight depending upon its importance.

The rater writes „YES‟ or „NO‟ against each statement.

An individual‟s rating is determined by adding together the weights of statements which are rated as „YES‟.

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YES NO WEIGHTS

1 . Is the employee really interested in the job? - - 1.5

2. Does he/she possess adequate knowledge about the job? - - 2

3. Is his/her attendance satisfactory? - - 1

4. Does he/she maintain the equipment in a good condition? - - 1.25

5. Does he/she co-operate with co-workers? - - 1.5

In this method, the manager keeps a written record of both highly favourable and unfavourable actions in an employee‟s performance.

When a “Critical Incident” involving an employee occurs, the manager writes it down.

Examples for Critical Incidents:

Suggested improvements in work method.

Refused to obey orders.

Violated the established rules.

Averted a serious accident.

A list of critical incidents is kept during the entire rating period for each employee.

Negative incidents are more noticeable than positive ones.

Its difficult to record all those incidents if the number of employees are more.

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The reviewer will be from outside the department or from a 3rd party agency.

The reviewer will be a professional in conducting appraisals.

The outsider reviews employee records and holds interviews to rate the employees.

The review time is less and the reviewer should have a thorough knowledge about the work and employees‟ working conditions.

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The manager writes a short essay describing each employee‟s performance during the rating period.

• The rater‟s overall impression of the employee‟s performance.

• The promotability of the employee.

• The jobs that employee is now able or qualified to perform.

• The strengths and weakness of the employee.

• The training and assistance required by the employee.

The rater must describe the employee within a number of broad categories..

The quality of rating depends on the writing skills of the rater.

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