Hrm Appraisal

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    Performance Management System

    METHODS OF APPRAISAL

    The last to be addressed in the process of designing an appraisal program is to

    determine methods of evaluation. Numerous methods have been designed to

    measure the quantity and quality of employees job performance. Each of themethod discussed could be effective for some purposes, for some organizations.

    None should be dismissed or accepted as appropriate except as they relate to the

    particular needs of the organization or of a particular type or employees. Broadly,

    all the approaches to appraisal can be classified into

    I) Past-oriented methods

    II) Future-oriented methods

    PAST-ORIENTED METHODS:

    Rating scales

    Checklists

    Forced choice method

    Forced distribution method

    Critical incident method

    Behaviorally anchored scales

    Performance tests and observations

    Annual confidential reports

    Essay method

    Cost accounting approach

    FUTURE ORIENTED METHODS:

    Management by objectives

    360-Degree appraisal

    Psychological appraisals

    Assessment centers

    NEWER OR MODERN METHODS OF APPRAISAL

    As we have seen, most traditional methods emphasize either on the task or the

    worker's personality, while making an appraisal. In order to bring about a balance

    between these two, modern methods have been developed. Of such methods, the most

    important are:

    Appraisal by Results or Management by Objectives,

    Assessment Center Method.

    Behaviorally Anchored Rating Scales.

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    Performance Management System

    MANAGEMENT BY OBJECTIVES (MBO)

    OBJECTIVES OF MBO:

    It is result oriented or it is the performance, which matters the most. It provides

    responsibility and accountability and recognizes that employees have needs forachievement and self-fulfillment. It meets this need by providing opportunities for

    participation in goal setting process.

    360-Degree Feedback

    OBJECTIVES OF 360-DEGREE FEEDBACK:

    The results from 360-degree feedback are often used by the person receiving the

    feedback to plan training and development. Results are also used by some

    organizations in making administrative decisions, such as pay or promotion. When

    this is the case, the 360 assessment is for evaluation purposes, and is sometimes called

    a "360-degreereview."

    BEHAVIORALLY ANCHORED RATING SCALES (BARS)

    This is a new appraisal technique, which has been recently developed.

    THE ASSESSMENT CENTER METHOD

    The assessment center concept was initially applied to military situations by the

    German Army in 1930s.the most important feature of this method is job related

    simulations or mock situations. These simulations involve characteristics that

    managers feel are important for job success. The evaluators observe and evaluate

    participants as they perform activities commonly found in these higher-level jobs.

    STRAIGHT RANKING METHOD

    It is the oldest and the simplest method of performance appraisal, by which the man

    and his performance are considered as an entity by the rater. That is the ranking of a

    man in a work group is done against that of another. The relative position of each man

    is tested in terms of his numerical rank. It may also be done by ranking a person on

    his job performance against that of another member of a competitive group by placing

    him as number one or two or three in total group i.e. persons are tested in order of

    merit and placed in a simple grouping.

    This is the simplest method of separating the most efficient from the least efficient:

    and relatively easy to develop and use.

    PAIRED COMPARISON TECHNIQUE

    This is an improvement over the straight ranking method. By this technique, each

    employee is compared with all other persons in pairs one at a time. With this

    technique, judgment is easier and simpler than with the ordinary ranking method. The

    number of times each individual is compared with another is tallied on a piece ofpaper. These numbers yield the rank order of the entire group.

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    Performance Management System

    GRAPHIC RATING SCALE

    This is the most commonly used method of performance appraisal. Under

    it a printed forms, one for each person to be rated. According to Jucius,these factors are: employee characteristics and employee contribution. In

    employee characteristics are included such qualities as imitativeness,

    leadership, cooperativeness, dependability, industry, attitude, enthusiasm,

    loyalty, creative ability, decisiveness, analytical ability emotional ability,

    and co-ordination. In the employee contribution are included the quantity

    and quality of work, the responsibility assumed, specific goals achieved,

    regularity of attendance, leadership offered, attitude towards superiors and associates,

    versatility etc. These traits are the evaluated on a continuous scale, wherein the rater

    places a mark somewhere along a continuum. This method was introduced by Walter

    D. Scott to get the judgment of superiors on the subjects.

    FORCED CHOICE DESCRIPTION METHOD

    This method evolved after a great deal of research conducted for the military services

    during World War II. It tries to check a raters tendency to give consistently high or

    low ratings to all employees.

    Under this method, the rating elements are several sets of pair phrases or adjectives(usually sets of four phrases two of which are positive, two negative) relating to job

    proficiency or personal qualifications. The rater is asked to indicate which of the four

    phrases is most and least descriptive of the employee.

    The following statements are examples of the type of statement that are used;

    Makes little effort from his own side

    Organizes the work well

    Lacks the ability to make people feel at ease

    Has a cool temperament

    Is punctual and careful Is dishonest and disloyal

    Is hard worker and co-operative

    In the above, phrases are both favorable and unfavorable, while the favorable

    ones get a plus credit; the unfavorable ones get no credit.

    CRITICAL INCIDENT METHOD

    This method was developed following research conducted by the armed forces in the

    United States during World War II. The essence of this system is that it attempts tomeasure workers performance in terms of certain events or episodes that occur in

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    Performance Management System

    the performances of the rates job. These events are known as Critical incidents. The

    basis of this method is the principle that there are certain significant acts in each

    employees behavior and performance which make all the difference between success

    and failure on the job.

    The supervisor keeps a written record of the events (either good or bad) that caneasily be recalled and used in the course of a periodical or formal appraisal. Feedback

    is provided about the incidents during performance review session.

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