METHODS OF METHODS OF PERFORMANCE PERFORMANCE

APPRAISALAPPRAISAL

Appraisal methods are divided into Appraisal methods are divided into two two

I.I. Traditional MethodsTraditional Methods

II.II. Modern MethodsModern Methods

Graphic Rating ScalesGraphic Rating Scales GRS is also known as Linear Rating GRS is also known as Linear Rating

Scale and is one of the oldest widely Scale and is one of the oldest widely used and simple techniqueused and simple technique

GRS compares individual performance GRS compares individual performance to an absolute standard.to an absolute standard.

The appraisers are supplied with printed The appraisers are supplied with printed forms, one for each employee.forms, one for each employee.

These forms contain a number of These forms contain a number of objectives, behavior and trait based objectives, behavior and trait based qualities and characters to be rated like qualities and characters to be rated like quality & volume of work, job quality & volume of work, job knowledge, dependability, initiative, knowledge, dependability, initiative, attitude etc.,attitude etc.,

Rating Scales are of two typesRating Scales are of two types

1.1. Continuous Rating ScaleContinuous Rating Scale

2.2. Discontinuous Rating ScaleDiscontinuous Rating Scale

Under continuous rating scale continuous order Under continuous rating scale continuous order

Like 0,1,2,3,4 and 5 are used.Like 0,1,2,3,4 and 5 are used.

Under discontinuous rating scale appraiser Under discontinuous rating scale appraiser assigns assigns

the points to each degree. Performance regarding the points to each degree. Performance regarding

each character is known by the points given by each character is known by the points given by the the

rater. The points are added to find out the overall rater. The points are added to find out the overall

performance.performance.

RANKING METHODRANKING METHOD Under this method, the employees are Under this method, the employees are

ranked from best to worst on some ranked from best to worst on some characteristics.characteristics.

The rater first finds the employee with The rater first finds the employee with the highest performance and the the highest performance and the employees with the lowest performance employees with the lowest performance in that particular job category and rates in that particular job category and rates the former as the best and the latter as the former as the best and the latter as the poorest.the poorest.

Then the rater selects the next highest Then the rater selects the next highest and next lowest and so on until he rates and next lowest and so on until he rates all the employees in that group.all the employees in that group.

PAIRED COMPARISION PAIRED COMPARISION METHODMETHOD

This method is relatively simple. This method is relatively simple. Under this method, the appraiser Under this method, the appraiser ranks the employees by comparing ranks the employees by comparing one employee with all the other one employee with all the other employees in the group, one at a employees in the group, one at a time.time.

FORCED DISTRIBUTION FORCED DISTRIBUTION METHODMETHOD

Under this method, the rater after Under this method, the rater after assigning the points to the assigning the points to the performance of each employee has performance of each employee has to distribute his ratings in a pattern to distribute his ratings in a pattern to conform to normal frequency to conform to normal frequency distribution.distribution.

Under this method employees are Under this method employees are placed in certain ranked categories placed in certain ranked categories but not ranked within the categories.but not ranked within the categories.

CHECKLIST METHODSCHECKLIST METHODS The checklist is a simple ranking The checklist is a simple ranking

technique in which the supervisor is technique in which the supervisor is given a list of statements or words and given a list of statements or words and asked to check statements asked to check statements representing the characteristics and representing the characteristics and performance of each employee.performance of each employee.

There are three types of checklist There are three types of checklist methods,methods,

1.1. Simple ChecklistSimple Checklist

2.2. Weighted checklistWeighted checklist

3.3. Forced choice methodForced choice method

i.i. Simple Checklist Method: The Simple Checklist Method: The checklist consist of a large number checklist consist of a large number of statements concerning an of statements concerning an employee behavior.employee behavior.

• The rater checks to indicate if the The rater checks to indicate if the behavior of an employee is positive behavior of an employee is positive or negative to each statement.or negative to each statement.

CRITICAL INCIDENTS CRITICAL INCIDENTS METHODMETHOD

The supervisor continuously The supervisor continuously records the critical incidents of the records the critical incidents of the employee performance or behaviors employee performance or behaviors relating to all characteristics (both relating to all characteristics (both positive & Negative) in a specially positive & Negative) in a specially designed note book.designed note book.

The supervisor rates the The supervisor rates the performance of his subordinates on performance of his subordinates on the basis of notes taken by him.the basis of notes taken by him.

ESSAY OR FREE FORM ESSAY OR FREE FORM APPRAISALAPPRAISAL

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

Evaluation of overall performance Evaluation of overall performance based on strengths/weaknesses of based on strengths/weaknesses of employee performance rather than employee performance rather than specific job dimensions.specific job dimensions.

Manager should have good writing Manager should have good writing skills.skills.

GROUP APPRAISALGROUP APPRAISAL Under this method an employee is Under this method an employee is

appraised by group of appraisers.appraised by group of appraisers. The group consist of The group consist of Immediate supervisorImmediate supervisor Managers or head of the departmentsManagers or head of the departments ConsultantsConsultants■ The immediate supervisor enlightens The immediate supervisor enlightens

other members about the job other members about the job characters, demands, standards of characters, demands, standards of performance etc., then the other group performance etc., then the other group members appraise the employee members appraise the employee performance.performance.

This method is widely This method is widely used for the purpose used for the purpose of promotions, of promotions, demotions and demotions and retrenchment retrenchment appraisal.appraisal.

CONFIDENTIAL CONFIDENTIAL REPORTSREPORTS

Assessing the employee’s performance Assessing the employee’s performance confidentially is a traditional method of confidentially is a traditional method of performance appraisal.performance appraisal.

Under this method, the superior Under this method, the superior appraises the performance of his appraises the performance of his subordinates based on his observations, subordinates based on his observations, judgement and intuitions.judgement and intuitions.

Superior does not allow the employee to Superior does not allow the employee to know the report and his performance.know the report and his performance.

The superior writes the The superior writes the report about his subordinates report about his subordinates strengths, weaknesses, strengths, weaknesses, intelligence, attitude to work, intelligence, attitude to work, sincerity, commitment, sincerity, commitment, punctuality, attendance, punctuality, attendance, conduct ,character, conduct ,character, friendliness etc.,friendliness etc.,

MODERN METHODSMODERN METHODS

Behaviourally Anchored Behaviourally Anchored Rating ScaleRating Scale

Assessment CentreAssessment CentreHuman Resource Human Resource AccountingAccounting

Management by ObjectivesManagement by Objectives360 Degree Appraisal360 Degree Appraisal

BARSBARS It combines elements of the traditional It combines elements of the traditional

rating scales and critical incident rating scales and critical incident methods.methods.

Using BARS, job behaviours from critical Using BARS, job behaviours from critical incidents-effective and ineffective incidents-effective and ineffective behaviours are described more behaviours are described more objectively.objectively.

The method employs individuals who are The method employs individuals who are familiar with a particular job to identify familiar with a particular job to identify its major components.its major components.

Then they rank and validate specific Then they rank and validate specific behaviours for each of the components.behaviours for each of the components.

HOW TO CONSTRUCT HOW TO CONSTRUCT BARSBARS Step I: Collect Critical Incidents: Job Step I: Collect Critical Incidents: Job

holder and supervisors who have holder and supervisors who have knowledge of the job describe specific knowledge of the job describe specific examples of effective and ineffective examples of effective and ineffective behaviours related to job performance.behaviours related to job performance.

Step II: Identify performance Step II: Identify performance Dimensions: The people were assigned Dimensions: The people were assigned of developing the instrument cluster of developing the instrument cluster pertaining to the incidents into a small pertaining to the incidents into a small set of key performance dimensions. set of key performance dimensions. Generally between 5-10 dimensions Generally between 5-10 dimensions account for most of the performance.account for most of the performance.

Examples of performance dimensions include Examples of performance dimensions include technical competence, relationship with technical competence, relationship with

customer customer handling or paperwork and meeting day-to-day handling or paperwork and meeting day-to-day deadlines.deadlines. Step III: Reclassification of Incidents: Another Step III: Reclassification of Incidents: Another group of participations who are knowledgeable group of participations who are knowledgeable about the job is instructed to translate or about the job is instructed to translate or reclassify the critical incidents generated reclassify the critical incidents generated previously. They are given the definition of job previously. They are given the definition of job dimension and told to assign each critical dimension and told to assign each critical incident to the dimension that it best describes.incident to the dimension that it best describes.

Step IV: Assigning Scale Values to the Step IV: Assigning Scale Values to the Incidents: Each incident is then rated on a Incidents: Each incident is then rated on a one-to-nine scale with respect to how well one-to-nine scale with respect to how well it represents performance on the it represents performance on the appropriate dimension. A rating of 1 appropriate dimension. A rating of 1 represents ineffective performance; the top represents ineffective performance; the top scale value indicates very effective scale value indicates very effective performance. The second group of performance. The second group of participants generally assigns the scale participants generally assigns the scale values.values.

Step V: Producing the final instrument: Step V: Producing the final instrument: About 6-7 incidents for each performance About 6-7 incidents for each performance dimension will be used as behavioural dimension will be used as behavioural anchors.anchors.

ASSESSNENT CENTREASSESSNENT CENTRE This method of appraising was first applied This method of appraising was first applied

in the German Army in 1930.Later, business in the German Army in 1930.Later, business and industrial houses started using this and industrial houses started using this method.method.

This is not a PA TechniqueThis is not a PA Technique It is a system or organisation, where It is a system or organisation, where

assessment of several individuals is done by assessment of several individuals is done by various experts by using various techniques.various experts by using various techniques.

In basket, role playing ,case studies, In basket, role playing ,case studies, simulation etc are used to evaluate the simulation etc are used to evaluate the employees.employees.

Human Resources Human Resources AccountingAccounting

HR Accounting deals with cost and HR Accounting deals with cost and contribution of human resources to contribution of human resources to the organisation.the organisation.

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