• This concept first used by the U.s Army adopted the man to
man rating system for evaluating military personnel .
• This appraisal system first called merit rating . In earlier fifties
performance appraisal technique began to used for technical ,
profession and managerial person.
• Merit rating is the systematic evaluating of the individual with
respect to his performance on the job and his potential for
• According to Flippo : Performance appraisal is a systematic,
periodic and impartial rating of an employee’s excellence in a
matter of pertaining to his present job and his potential for
“ performance appraisal focus is an judging the caliber of an
employee so as to decide salary increment .
on the other hand , performance appraisal focuses on the
performance and future potential of the employee “
• Performance appraisal is a process consisting of a series of
• It is a systematic examination of an employee’s strengths and
weakness in the term of the jobs .
• It is a scientific study .
• It is an ongoing and continuous process.
• Its main purpose is to secure the information. For making the
• To provide a record of each employee’s performance for the
purpose of determining wages and incentive pay .
• To identify the employees who have been placed the wrong job
transfer them to the job for which they better suited .
• To know the quality of performance of each employee and to
identify their strength and weakness.
• To design training Programme for the improvement of the
quality of personnel .
• To locate employee who have adequate potential for promotion
and development .
• To serve as a feedback of the employee
• It help the supervisor to evaluate the performance of his
employee . It help him to assign that work to individuals one
the best suited .
• It provide the valuable information for the personnel decision
such as pay increase , promotion , demotion , transfer &
• Rating help in guiding & correction of the employee.
• It help in effective recruitment selection , placement &
orientation system of the organization .
• It motivate the employee to improve their performance .
(1). TRADITIONAL METHODS (2). MODERN METHODS
(A). Confidential report (A). Assessment center
(B). Graphic scale (B). Human resource accounting
(C). Strategic ranking (C). Behaviourally anchored
rating scales (BARS)
(D). Paired comparison (D). Management of objective
(E). Forced distribution (E). 360 degree performance appraisal
(f). Check list method
(G) . Critical incident method.
(H). Free essay method .
(I) . Group appraisal method.
(J). Field review .
( k ) . Nominations.
(L) . Work sample test .
• 1. Confidential report : This method mostly
used by government organization . A confidential report is
prepared by the superior . Its covers the strength and weakness
main achievements & failure , personality and behaviour of
• 2. Graphic scale method : A rating scale lists
traits and a range of performance value of each trait like as
Unsatisfactory , poor , fair , average , good, excellent
• 3. Straight ranking method : every
employee is judged as a whole without distinguishing the rates
from his performance .
A list is prepared the basis of their performance. Excellent
the employee at top ant lower employee at bottom.
4 . Paired comparison method : here an
employee is compared with all the others in pairs one at a time .
Comparison to be made on the basis of overall performance
the comparison to be made can be decided on the basis of
following formula .
N(N- 1 )/ 2
5. forced distribution method
here all employee can be divided into 5 categories i.e.
Outstanding above the average , average below , average and
6.Check list method a check list method is a list of
method which describes the character and performance of
employee on the job the rater check to indicate whether the
behaviour of an employee is positive or negative to each
• Critical incident method : This method
attempts to measure worker performance in term of certain
events or incidents that occur in the course of work . T he
supervisor keeps record of critical incidents at different time
and rate him on the basis .
• Free essay method : the supervisor writes a report
the employee which is based on his assessment .
• Field review method : under this method the
expert question the supervisor and obtain all important
information on each employee and take notes in his note books
1.Assessment center : an assessment center is a
group of employee drawn from different work unit . These
employee works together on an assignment similar to the one
they would handling when promoted . The evaluators observes
and evaluate employee to perform their job . It should be done to
determine the potential of the employee.
2.Human resource accounting method :
human resource is the valuable asset of any organization under
this method performance is judged in the terms of the costs and
contribution of employee costs of human resource consists of
human resource planning and recruitment , selection training
• Behaviorally anchored rating
scales (BARS) are scales used to rate performance.
BARS are normally presented vertically with scale points
ranging from five to nine. It is an appraisal method that aims to
combine the benefits of narratives, critical incidents, and
quantified ratings by anchoring a quantified scale with specific
narrative examples of good, moderate, and poor performance
• MBO (management by objectives)
methods of performance appraisal are results-oriented. That is,
they seek to measure employee performance by examining the
extent to which predetermined work objectives have been met.
• Usually the objectives are established jointly by the supervisor
and subordinate. An example of an objective for a sales
manager might be: Increase the gross monthly sales volume
5. 360 degree performance appraisal
In the formatted from of 360-degree performance appraisals, the
performance of an employee will be assessed based on ideas of
many other different people, for example customers, suppliers,
peers and direct reports. If the assessed is a manager, his/her staff
will be often asked for feedback on how that manager is doing his