WHAT ARE THE METHODS OF PERFORMANCE APPRAISAL?
Meaning: - Performance appraisal is a process of evaluating
work performance of employees. The purpose of appraisal is to individual and
organizational effectiveness.
Definition: - “Performance appraisal is the systematic
description of an employee’s job relevant strengths and weaknesses.”
Defined be …………… (Wayne Cascio)
There are several methods or techniques of Performance
appraisal. The most common method can be broadly divided into two 1.
Traditional Method
groups. 2.
Modern Methods
A. TRADITIONAL
TECHNIQUES:
1. Check
List: - A list is prepared containing various work related statements such as:
Quality of work, speed of work, attitude towards work, etc. Against the list, the
employees are rated. The rater may mark against the yes or No various
statements. The main advantages are its simplicity, convenience, less time
consuming and less expensive.
2. Confidential
Reports: -This is an old and traditional method of appraising employees. A
confidential report is a report on the subordinate’s strength and weaknesses.
The confidential report is used for variety of personal decisions such as
transfers, promotion, etc.
3. Critical
Incident Method: -In this method, the rater records important incidents
involving the ratee. If the ratee performs well in such incidents, then he
gives high scores and vice-versa.
4. Ranking
Method: -There is various ranking method which are commonly used to evaluate
the performance of the employees. Ranking methods offer convenience to evaluate
the performance and they are less time consuming. The ranking methods used
are: 1. Simple ranking method. 2. Alternation ranking method. 3. Paired comparison method. method
4. Graphics
Rating Scale: - In this method, the raters use a graphic scale to appraise
certain specific factors such as quality of work, quantity of work,
dependability, etc. the graphic scale method is simple to understand. Easy to
conduct and less time consuming.
5. Narrative
Essay: - The simplest method is the narrative essay. In this, the rater
describes in detail an employee’s strengths and weaknesses and potential,
together with suggestions for improvement.
B. MODERN
TECHNIQUES:
7. Role
Analysis: - Role analysis is a process of analyzing the role of a manager in
relation to roles of other managers who are affected by his performance. The
role set members can conduct performance appraisal of the focal(crucial) role.
The focal (important) role can make necessary changes to improve his
performance.
8. Assessment
Center: - This technique is used for performance appraisal as well as selection
and training. Some firms use this technique of performance appraisal,
especially at the time of promoting managers to higher levels.
9. Management
by Objectives (MBO): - This technique can be used to measure the performance of
subordinate or lower level managers. In MBO, the processes involved are as
follows: 1. Superior and subordinate managers jointly define common goals. 2.
Jointly frame plans. 3. Subordinate manager implements the plans. 4. Joint
review of the plans.
10. Behaviorally
Anchored Rating Scale (BARS): -It is a variation of simple graphic scale. In
this case, the behavior or attitude towards the job appraised. Employees who
have a positive attitude towards the job may make every effort to upgrade and
update their knowledge and skills to handle their activities. Such employees
would be given higher performance appraisal.
11. 360 Degree
Appraisal: - Performance Appraisal is conducted by various parties such as
superiors, subordinates, clients, colleagues, panel of experts, etc. this
technique gives a balanced performance appraisal of the ratee. All the raters try to be as objective
as possible in their rating.
12. Human
Resource Accounting (HRA): - HRA deals with cost and contribution of human
resources to the organization. The cost of the employee includes cost of
selection, training, compensation, etc. employee contribution is the money
value of employee service to the organization. Employee performance can be
rated as positive when contribution is more than the cost and vice versa.
