Discover an easy way to create a workable performance appraisal grading system

How to develop a performance appraisal grading system that works

Employers are meant to rate their employees in their evaluations using a legitimate rating scale. This rating scale is created and verified by the company itself to allow it evaluate each employee's work using the same rating scale without showing favoritism. A universal rating system is prepared to evaluate all competencies enabling a uniform standardized set up for the entire workforce. As a company, you may choose to use the same rating scale for everything or different ratings for different competencies. It's all up to you to set up that which works best for you. Different rating schemes are used for different types of positions and its important to understand each before you settle on what you want to use. Some companies depending on different positions use various rating schemes to fit their needs.

Performance Appraisal grading systems

When selecting an appraisal grading system, it is important first to think about the rating will be used and decide how it will be utilized. The company's rating scale can be as simple as several levels of performance.

  • You can use a 5 point scale in ratings that test for competency when you want to differentiate between levels of performance and success.
  • You can choose an even number of 4-6 in order to discourage average scores. This kind of rating is mostly used by the organizations that are results-oriented.
  • You can also use a 2 point rating scale that does not need to differentiate between the levels of performance.

Different grade scales to consider

  • Matrix rating scale - This grading system allows you to evaluate the performance by using information e.g. data efficiently received, frequency of demonstration, the method of observation, etc. Matrix rating scale is best employed in manufacturing firms, health care setting or call centers.
  • Simple rating scheme - It is used to assess the core competencies or very specific skills that any employee either does or does not demonstrate. This is a very simple rating scheme that also allows the supervisors and managers to provide comments about their rating.
  • Detailed grading scheme - A detailed rating system includes a general description of competency and descriptions of different levels of demonstration. In this detailed system, managers rate thier employees with descriptions that best describes their behavior and can also add additional comments. This rating scheme is best used to evaluate leadership competencies and role based competencies.


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