Methods of performance appraisal
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This document outlines different methods for performance appraisal, dividing them into past-oriented and future-oriented categories. Past-oriented methods evaluate past performance and include ranking, paired comparison, grading, checklists, graphic rating scales, and forced distribution. Future-oriented methods focus on future potential and comprise assessment centers, human resource accounting, behaviorally anchored rating scales, management by objectives, psychological appraisal, and 360 degree feedback.
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Methods of performance appraisal
- 3. PAST ORIENTED METHODS  Ranking Method  Paired Comparison Method  Grading System  Graphic Scale  Check List  Forced Distribution  Critical Methods  Field Review  Confidential Report  Free Essay Method  Group Appraisal
- 4. FUTURE ORIENTED METHODS  Assessment Centre  Human Resource Accounting  Behaviourally anchored rating scales  Appraisal through MBO  Psychological Appraisal  360 Degree Feedback
- 6. RANKING METHOD The evaluator rates the employees from highest to lowest on some overall criterion. Ranks are assigned in order of their performance. This technique is also known as ‘alternation ranking’. PAIRED COMPARISON METHOD This method is probably more accurate than alternation ranking. But with large number of employees it becomes extremely time consuming and difficult to conduct. Each person is compared with other persons in pairs at one time. The number of times an employee is judged better than the others determines his rank.
- 7. GRADING METHOD Under this method, certain categories of abilities are defined in advance. Categories of abilities are excellent, very good, average, poor, very poor, outstanding, satisfactory etc. The actual performance is compared with these categories of abilities, and the person is allocated a grade which best describes his performance. CHECK LIST METHOD A check list is statement of traits and performance of employees on the job. It is prepared in two columns namely a ‘yes’ column and a ‘no’ column.
- 8. GRAPHIC RATING SCALES The rating scale consist of several numerical scales, each representing a job related performance criterion such as dependability, initiative, output, attendance, attitude and cooperation. There are two types of rating scales:  Discrete rating scale  Continuous rating scale
- 9. FORCED DISTRIBUTION METHOD In the forced distribution method, the rater is forced to select statements which are readymade.
- 10. CRITICAL INCIDENT APPRAISAL  Manager prepares list of statements of very effective and ineffective behaviour of an employee.  These critical incidents represent the outstanding or poor behaviour of an employee.  The manager periodically records critical incidents of employees behaviour.
- 11. FIELD REVIEW METHOD The appraiser goes to the field and obtains information about the work performance of the employee by way of questioning the said individual, his peer group and his superiors. CONFIDENTIAL REPORT  Prepared by the employee’s immediate superior.  Mainly used in government organisations.  It covers attendance, initiative, technical ability, ability of reasoning, responsibility, leadership quality, self impressions, achievement, failure etc.
- 12. ESSAY APPRAISAL METHOD The rater is asked to express the strong as well as the weak points of employee’s behaviour. The rater considers the employee’s: • Job knowledge and potential • Understanding of company’s programs, policies, objectives etc. • Relation with co-workers and supervisors • Planning, organizing and controlling ability • Attitude and perception GROUP APPRAISAL A group of raters evaluate the performance of employees.
- 14. ASSESSMENT CENTRES An assessment centre is a central location where managers may come together to have their participation in job- related exercises evaluated by trained observers. HUMAN RESOURCE ACCOUNTING METHOD In this method the performance appraisal of the employees is judged in terms of cost and contribution of the employees. BEHAVIOURALANCHORED RATING SCALES (BARS) The appraiser observes the behaviour of employees. This observed behaviour (actual behaviour) is compared with expected behaviour.
- 15. MANAGEMENT BY OBJECTIVES MBO is used as a performance appraisal technique, as it is easy to measure whether the stated objectives have been achieved or not. PSYCHOLOGICAL APPRAISAL In this method, the appraisal consists of in-depth interviews, psychological test, discussion with supervisors and review of other evaluations. 360 DEGREE FEEDBACK  It is a systematic collection and feedback of performance data on an individual or group.  Data is gathered and fed back to the individual participant in a clear way designed to promote understanding, acceptance and ultimately behaviour.  It makes the employee feel much more accountable.
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