Performance Appraisal Methods-I

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YlETHODS OF PERFORMANCE APPRAISAL

2.1 Group Order Ranking

2.2 Group Rating

2.3 Essay Method

2.4 Check List

2.5 Critical Incidents

2.6 Graphic Rating Scale Method (Conventional Rating Method)

. 2.7 Work Standards Approach

2.8 Field Review

2.9 Forced Choice Rating

2.10 Forced Distribution Method

2.11 Paired Comparison Method

2.12 Confidential Report Method

2.13 Assessment Centre

2.14 The Appraisal Interview

2.15 M.B.O. (Management By Objectives)

2.16 Behavioural Observation Scales (BOS)

2.17 Behavioural Checks (BCs)

2.18 Behaviourally Anchored Rating Scales (BARS)

2.19 Intangible Assets Valuation or Intangible Assets Monitoring Approach or Human Resourc

Accounting method.

2.20 Balanced Score Card Approach

2.21 360 Degree Assessment and Feedback System (Multirater Assessment and Feedbac

System) - MAFS

2.22 Self Appraisal- Self Appraisal for Managerial Effectiveness

2.23 Selection (choice) of the Appropriate Performance Appraisal Methods.


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The group order ranking requires the evaluator to place employees in to a particular classification,

such as "top one tenth" or "second one fifth". This method is often used in reconsidering students to

graduate schools. Evaluators are asked to rank the students in the top 5 per cent, the next 5 per cent,

the next 15 per cent and so forth. But when used by managers to appraise subordinates, managers deal

with all their subordinates. So if a rater has twenty subordinates, only four can be in the top fifth and

of course, four must also be relegated to the bottom fifth.

Advantages

The advantage of this group ordering is that it prevents raters from inflating their evaluations,

so everyone is rated near the average-outcomes that are nqt unusual with the group-wise rating scale.

Disadvantages

1. The predominant disadvantage surfaces when the number of employees being compared

is small. At the extreme, if the evaluator is looking at only four employees, it is possible

that they may all be excellent, yet the evaluator may be forced to rank them into top

quarter, second quarter, third quarter and last quarter. Theoretically, as the sample size

increases, the validity of relative scores as an accurate measure increases but occasionally

the technique is implemented with a small group, utilising assumptions that apply to large

groups.

2. Another disadvantage which plagues all relative measures is the "zero - sum- game".

This means, any change must add up to zero. For example, ifthere are twelve empJoyees

in a department perfonning at different levels of effectiveness, by definition, three are inthe top quarter, three in the second quarter, and so forth, the sixth last employee, for

instance would be in the second quartile. Ironically, if two of the workers in the third and

fourth quartiles leave the department and are not replaced, then our sixth best employee

now falls into the third quarter. Because comparisons are relative and an employee who

is mediocre may score high only because he or she is the "best of the worst". In contrast,

an excellent perfonner, who is matched against "stiff competition" may be evaluated

poody, when in absolute terms his or her performance is outstanding.!

In practice, it is often found that some raters use high standards than others when rating

technique may be used. In such a case, a member from thepersonnd" department meets the raters

(appraisers) in each supervisory unit and discusses each employee's rating so that the group can arrive

at a coiicensus. This method also helps the raters to develop similar standards for evaluation. Such a

group judgement technique is fairer than individual rating and helps the personnel department to assess

the relative degree of toughness or leniency in the rater, although it is a very time consuming method.2


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In the essay method, the appraiser writes a free-fonn of essay describing the subordinate's

rfonnance in a number of broad categories. Some categories that can be included.in these fonn

e:

(a) overall appraisal of the employees perfonnance;

(b) the employee's promotability;

(c) the jobs the employee can currently perfonn;

(d) the employee's strengths and limitations;

(e) additional training needs; and

(f) potential and areas of improvement. Sometimes, essay appraisals supplement othe

appraisal methods rather than substituting for them.

dvantages

he advantages claimed for essay method can be summed up asfollows:

1. This approach gives the appraiser facilities requiring attention to a specific set offactors

2. Essays can provide detailed feedback and establish useful performance related

communication between a manager and his subordinate.

3. An essay, if constructed by some one who has complete knowledge of another's

perfonnance can have substantial value.

4. The strength of the essay appraisal lies in its simplicity.

5. The essay appraisal can provide considerable infonnation, much of which can easily bfed back and assimilated by the employee.

6. It requires no complex form or extensive training to c0111plete.

isadvantages

he disadvai'ltages of the essay method can be summed up asfollows:

1. Because of the open endedness of this method, it is difficult to compare essay appraisal

made by different supervisors.

2. This method is excessively dependent upon the writing skills of the supervisors.

3. It is a time consuming method.

4. The narrative essays suffer from the problems cited for the MBO (Management B

Objectives) method.

5. Specifically the product of the appraisal session tends to be more developmental tha

administrative (that is evaluative) value.

6. Narrative accounts tend to be highly individualised, rendering comparisons among

individuals. .

7. Since most organisations employ perfonnance appraisals as an aid to administrative

decision-making, the narrative technique may have limited usefu1riess for m~n

organisations.3

8. Because the essays are constructed, they are likely to compare individuals across th

organisations


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9. Some rates are better written than others. So a "good" or "bad" evaluation may be

determined by the rates, writing skills or by the employee's actual level of perfonnance.

10. This method provides only qualitative data and decision-making improves when usefu

quantitative data are generated. Quantitative data ~an be compared and ranked more

objectively.

Under this method, the rater is presented with a test of positive or negative adjectives or descriptive

behavioural statements and is asked to check of all those that apply to the person being rated. A score

can be developed by tallying tbe positive checks. The following are the illustrative check list statements

Displayed unpleasant behaviour to sales person.

Absented from work frequently.

Talked rudely and abruptly on the telephone.Created a disturbance with loud talking.

Reprimanded a requisitioner in the presence of others.

Accepted inferior quality goods from a supplier.

Failed to follow the chain of command.

Helped a requisitioner prepare a purchase order.

Displayed courteous behaviour to a salesperson.

Rejected inferior quality goods.

Developed a new procedure that reduced pap~r work.

Rejected a bid that was unreasonably priced.Helped fellow employees to solve their problems.

Suggested a new procedure.

Remained punctual at his work

Co-operates with co-workers

Keeps work spot neat and clean

Can be expected to complete the work on time

Maintains detailed records

Reluctant to even work over time

Cannot accept constructive criticismSupervisor's orders are usually followed

Approaches the customers promptly

Suggests additional merchandise to customers

Keeps busy when not serving a customer

Loses temper in public

Volunteers to help other employees

Fig. 2.1 : Check List

Source: B.P. Singh and P.L. Tameja, Personnel Management and Industrial Relations, Dhanpat Raand Sons, New Delhi, 1990, p. 194,

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Performance Appraisal Methods-I