Performance Appraisal Methods

Methods of Performance Appraisal


Several methods and techniques are used for evaluating employee performance. They may be classified into two broad categories :
a) Traditional Methods
i. Confidential Report
ii. Free Form or Essay
iii. Straight Ranking
iv. Paired Comparisons
v. Forced Distribution
vi. Graphic Rating Scales
vii. Checklist Method
viii. Critical Incidents
ix. Group Appraisal
x. Field Review

b) Modern Methods
i. Assessment Centre
ii. Human Resource Accounting
iii. Behaviourally Anchored
iv. Rating Scales
v. Appraisal through MBO
vi. 360 Degree Appraisal

a) Traditional Methods

i. Confidential Report
• Used in most government organizations.
• A report is prepared by the employee’s immediate superior which covers the strengths and weaknesses, main achievements and failure, personality and behavior of the employee.
• It is descriptive in nature
• Used mainly used for promotions and transfers of employees.
• Employee is not provided with the feedback. Therefore the employees never get to know about his strengths and weaknesses.
• The method focuses on evaluating rather than developing the employee.

ii. Free form or Essay
• The evaluator writes a short essay on the employee’s performance on the basis of overall impression.
• The description should be factual and concrete.
• The drawback is that the method may involve biasness as evaluation is not based on specific performance dimensions related to the job.
• Another drawback is that quality of appraisal depends on the writing ability of the evaluator rather than on employee performance.

iii. Straight Ranking

• In this method, the superior ranks his or her subordinates in the order of their merit, starting from the best to the worst.
• Straight ranking is one of the oldest and Simplest methods.
• The ‘how’ and ‘why’ are not questioned, nor answered.
• The major drawback is that ranking of individuals having varying behaviour patterns or traits is difficult especially when a large number of persons are to be rated.
• The method only indicates how a person stands in relation to others in the group but does not tell how much better or worse he is than another.

For instance
If five persons A, B, C, D , E , F and G are to be ranked, the ranking may be as follows:














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