The document discusses various modern methods of performance appraisal, including management by objectives, critical incident reports, 360 degree feedback, and rating scales. It provides details on how management by objectives works, involving setting goals, performance standards, comparing performance to goals, and periodic reviews. Several other methods are also explained briefly, with advantages and examples given for the 360 degree feedback approach.

1. S.M.PATEL INSTITUTE OF COMMERCE
(GLS UNIVERSITY)
PROJECT
HUMAN RESOURCE MANAGEMENT
TOPIC
MODERN METHODS OF PERFORMANCE APPRAISAL

2. Performance
Appraisal
Performance appraisal may be defined as the systematic evaluation of an
employee’s performance on the job in terms of requirement of the job .
 According to Tiffin and McCormick , ‘performance appraisal is a systematic
evaluation of personnel by their supervisors or others who are familiar with
their work performance’.
 In the words of shubin , ‘It is a systematic appraisal of employee’s personality
traits and performance on the job and is designed to determine his
contribution and relative worth to the firm.
Main features
 It is the evaluation of employee on the basis of his ability and skills.
 It is a instrument of discovering hidden genius.

4. Methods of performance Appraisal
A number of methods are used for performance appraisal.
1) Management by objectives (MOB).
2) Critical Incident .
3) 360* degree feedback.
4) Rating scale .
5) Forced choice.

5. Management by Objectives
Management by objective is the latest concept of performance appraisal. The concept of
MOB was popularized by Peter Drucker in 1954 in his book. “The practice of
management”. Peter drucker stressed that business performance requires that each job
can be directed towards the objective of the whole business.

6. Management by objectives can be described
as a process consisting of following steps :-
1). The Management has to set the goals for the whole organization.
First and then set goal for each subordinate. In most of the business enterprise, the superior
and subordinate work together to determine the goals. In practice goals are regarded as
standards with which actual performance of individuals is compared to know there efficiency.
In some companies actual goals are set only by superior and subordinatice who are asked to
achieve them.
2). The second step in M.O.B is to set performance standards for each
subordinates for a particular time period.
For this it is necessary that managers consult their assistants , who consult their foreman and
the foremen in turn consult their employee’s. In this way every one become aware of his
responsibility. Everyone knows what has been done , what remains to be done as he is aware
of what is excepted of him.
3). The third step is to compare the performance of each individual with the
goal agreed upon.
If the goal is not achieved , the evaluator will try to find out reasons and also need for
training. Sometimes goals are not achieved because of coordination of organization over
which the employee has no control. This will lead to either revision of goals or revision of
organization conditions.

7. 4). The last step in the periodic review of goals not achieved.
For this goals may be revised and goal setting method also may be changed. The
employees who have achieved or exceeded his goals , are involved in the system of
revision of goals. For these who could not achieve the goals are not degraded but
are encouraged to improve their performance.

8. •The critical incident method was developed by J.C.Flangan and R.K.Burns. Under this method the
behavior of each employee on happening of a significant incident is recorded. Only important events or
incidents are taken note of. The behavior of employee in such event is noted.
A list of critical incidents must be prepared and given to the rater, particularly to
supervisor who observes the bheviour of his workers. Of course it is difficult to
prepare a list of critical incident and require expert knowledge and a long
experience. One firm observed the ‘dependability’ of its employees with the
following check list :
I. Left work without leave,
II. Reported late to work,
III. Stopped machine before quitting time etc.
list of critical incidents are prepared to evaluate the productivity, accuracy n
work , sense of responsibility , ability , willingness to work of employees and
their behavior is noted on the occurrence of such incidents.

9. 1) Talked rudely on the telephone.
2) Accepted inferior quality goods from a supplier.
3) Displayed a courteous behavior to a salesman.
4) Helped fellow workers to solve their problems.
5) Create disturbance with loud talking.
6) Refused to work overtime when asked for.
7) Remained punctual in his work.
It is argued in favour of this method that :-
 It is a objective method of evaluating employees. Personal prejudice of raters
do not play any role.
 The superior is not required to evaluate employees impartially .

10. This method was first developed by General Electronics Co. of the U.S.A. in 1992. In
India also these method is used now by Hindustan unilever Ltd. ,Colgate Palmolive ,
Infosys technologies , wipro , Thomas Cook etc.
In this system the appraisers may be any person who has thorough about the job done
by contents to be apprised , standards of contents and who observes the employee
while performing a job. The appraisers should have the thorough knowledge of the job
content. He must have a capacity to judge what is important and what is less
important. Performance employees can be done by employee’s supervisor , peers ,
subordinates , users of service or customers and consultants. As his performance is
appraised all round the employees i.e by persons who daily come into his contract and
observe his performance daily and in all respects , is called 360* appraisal method.
All these appraisers collect information after observation of employees ‘ performance
the information is given in a survey questionnaire form through the computerized
system designed for this purpose. These reports are then presented to supervisors and
employees themselves. This system of performance appraisal is more realistic and
correct .

12. Name Roll.no.
Jayesh sharma 15757
Ishan sharma 15755
Gaurav sharma 15753
Herik varneshiya 15882
Kunal varneshiya 15881
Divyansh sharma 15752
Harshvardhan sharma 15754
Ajay ranwani 15920
Anshi Tewari

13. Bibliography
 Microsoft powerpoint 2013.
 Human resource management text book.
 Internet for pictures and extra information.