Learning & Teaching Fellow (retired)
Performance appraisal, also known as employee appraisal, is a method by which the performance of an employee is evaluated (generally in terms of quality, quantity, cost and time).
Traditional Methods of Performance Appraisal
1. ESSAY APPRAISAL METHOD
This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
In this method of performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur. 5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the performance of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
7th February 2008 From India, Madras
your performance appraisal presentation is really nice.. and i need 360 degrees performance appraisal material. If ua have that material pals mail me that @
thanks in advance
+91 98481 04265 :D :D
9th February 2008 From India, Madras
Some materials on the same topic,,
10th February 2008 From India, Coimbatore
Thanks for your views.
In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.
The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."
11th February 2008 From India, Madras
You can visit http://www.abanet.org/irr/hr/spring04/forced.html for more examples.
You can go for
Dauten, D, "Performance appraisals accomplish little", Star Tribune, 1995
Drinan, T, Cater, M, "Human Resource management", Hodder Education, 1995
Ferris G, Rosen, S, "Handbook of human resource management", Blackwell Business Publishing,1995
20th February 2008 From India, Madras
In your post you had mention regarding the Checklist Method, is it possible for you to send me some material on the same. As I am working for a Hospitality company & we are trying to design a Performance Management System for the oganisation, so wanted to perpare cheklists for the managers to asses their team or each team members on. Would be of a great help if you can assist me on the sam.
Thanks a lot in advance, and sorry for botheration.
20th June 2008 From India, New Delhi
Pl go to www.openlearningworld.com/.../Methods%20of%20Performance%20Appraisal.html <link updated to site home> ( Search On Cite | Search On Google )
You will find a brief example of different methods. If you need any more, pl drop me a private message.
Have a nice day.
20th June 2008 From United Kingdom
performance appraisals and sample appraisal form templates and 360 degree appraisals free tips, performance evaluation, employee evaluation tips found at
360 deg appraisal forms - Google Search=
28th June 2008 From United Kingdom
I am working in a startup IT company & my director suggested to start with the performance appraisal of employees. SO can anybody suggest me which method will be useful for that & provide a detail example bcoz i am new to PMS.
Thanks in Advance.
27th April 2017 From India, undefined