Rating Scale Method

1. RATING SCALE
METHOD
( P E R F O R M A N C E A P P R A I S A L T E C H N I Q U E )
P R E S E N T E D BY : N AVA N S O D H I ( P G D M - H R )

2. PERFORMANCE APPRAISAL
A performance appraisal is a regular review of an employee's job
performance and overall contribution to a company. Also known
as an "annual review," "performance review or evaluation,"
or "employee appraisal," a performance appraisal evaluates an
employee’s skills, achievements and growth, or lack thereof.
Companies use performance appraisals to give employees big-
picture feedback on their work and to justify pay increases and
bonuses, as well as termination decisions. They can be conducted
at any given time but tend to be annual, semi-annual or

3. NEED FOR PERFORMANCE APPRAISAL
• Provide information about the
performance ranks.
• Review of the performance of the
subordinates.
• Provide information that helps to
counsel the subordinates.
• Gets information to diagnose
deficiency in employees regarding
KSA.
• To prevent grievance and in
disciplinary activities.

4. PERFORMANCE APPRAISAL
TECHNIQUES
• Ranking Method
• Paired Comparison
• 360 Degree Feedback
• Essay Method
• Management by Objective
• Rating Scales
• Assessment Centre
• Cost Accounting Method

5. RATING SCALES METHOD
Rating Scales Method is commonly used method for
assessing the performance of the employees and well-
known traditional method of performance appraisal of
employees. Many corporations and companies example
in the country India, telecommunications company
likely Airtel and US IT companies
like Dell Corporation are using this method for
evaluating the employees and subsequently take
decisions on concerned employee.

7. ADVANTAGES/DISADVANTAGES OF
RATING SCALES
Structured &
Standardised
Equal Treatment
Easy to use and
Understand
Advantages
Not suitable for
Planning
Limited Reliability
Difficult to evaluate
other aspects.
Dis-
advantages

8. TYPES OF RATING SCALES
Graphic
Rating Scale
•Global
Rating
•Behavioral
Anchored
Rating
Scales
(BARS)

9. GRAPHIC RATING SCALE
Graphic rating scales are used in many surveys, they normally consist of
four or five rating criteria listed, such as-
• Unsatisfactory
• Below expectation
• Satisfactory
• Above average
• Outstanding
Companies like DELL, Maruti Suzuki India Ltd and Airtel are using this
graphic rating scale method to appraise performance of their employees
in there jobs and to take decisions regarding the matters concerned to
employees

11. USES OF GRAPHIC RATING SCALE
• This method is popular because it is simple and does not
require any writing ability.
• The method is easy to understand and use.
• Comparison among pairs is possible.
• This is necessary for decision on salary increases, promotion,
etc.
• It is also subjected to rater’s bias while rating employee’s
behaviour at job.

12. GLOBAL RATING METHOD
Organizations use a single global rating of overall job
performance to evaluate an employee. While this method
would be expedient for the employer and may assist with
decision such as paying bonus and allocating performance
based pay increases, it is unlikely to provide the employee with
any ideas on how to improve their performance.

13. BEHAVIOURALLY ANCHORED RATING
SCALES (BARS)
• The Behavioural Anchored Rating Scale method is normally
used only for the assessment of employee behaviour, for
other performance criteria.
• It aims to assign a score to a range of performance criteria.
• The BARS method focuses only on observable behaviour and
provides examples of this observable behaviour for each
score.
• This makes it easier to have consistent rating across a large
organization.

14. For example when assessing a leader on their passion for people you
may consider –

15. RATING METHODS BIAS
The 5 key rating errors or biases that you will need to be aware of are –
The Halo Effect
Contrast Errors
Recency Bias
Leniency Bias
Self Serving Bias

16. THANK YOU