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1. Different performance appraisal methods
In this file, you can ref useful information about different performance appraisal methods such as
different performance appraisal methods methods, different performance appraisal methods tips,
different performance appraisal methods forms, different performance appraisal methods phrases
… If you need more assistant for different performance appraisal methods, please leave your
comment at the end of file.
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I. Contents of getting different performance appraisal methods
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Different methods of performance appraisal are followed in different organizations to achieve the
above objectives. Since some methods of performance appraisal are complicated and calls for
adequate knowledge in quantitative techniques, many organizations follow traditional methods
of appraisal while others consider modern methods as the basis for evaluating job performance of
their employees.
Traditional methods of performance appraisal may be categorized broadly under the following
heads:
1. Straight Ranking Method:
This is the oldest and simplest method of performance appraisal by which employees are tested
in order of merit, giving some numerical rank and are placed in a simple grouping. Such
grouping separates employees under each level of efficiency, which may vary from the most
efficient to the least efficient.
Since, it is a blunt quantification of performance; it does not account for behavioural parameters
and only considers an individual employee’s level of efficiency in relation to others. For such
obvious deficiency, this system does not provide any scientific basis for performance appraisal of
employees.
2. Paired Comparison Technique:

2. This is a somewhat better method of performance appraisal as each employee is compared with
others in pairs at a time. For each performance trait, an individual employee’s performance is
tallied with others in pairs, and then the rank order is decided.
This system is also not suitable in those cases where the number of employees is usually high.
For better comprehension, a sample table of comparison on trait reliability is presented below:
3. Man-to-Man Comparison:
Under this method, certain factors are selected for analysis like, leadership, initiative,
interpersonal relationship, etc., and a scale is designed by a rater for each such factor. After
rating such factors individually, the aggregate performance of an individual employee is decided,
and such aggregative performance is also given a scale.
Likewise, an individual employee is considered with others. This method is somewhat like factor
comparison method and is widely used in job evaluation. Since developing uniform rating scale
is a complicated task, this factor is not much in use for performance appraisal of employees.
4. Grading Method:
Under this method, certain features worth understanding the performance of an employee are
identified. Such features may be leadership, communication power, analytic ability, job
knowledge, etc. The raters mark/rate such features according to a scale and match the
employees’ performance in comparison to his/her own developed grade definition.
5. Graphic or Linear Rating Scale:
Such a rating scale is normally a continuous scale which enables a rater to mark somewhere
along a continuum. Usually, a printed form is given to a rater along with the factors to be rated,
giving a continuous scale against each such factors.
This method, therefore, enables quantification of performance scores and also helps to analyse its
significance using statistical techniques. Since making a rating cluster is difficult for obvious
difference in individual characteristics of each job, this system may not always ensure objective
appraisal.
6. Forced Choice Description Method:
It is a combination of objective and subjective judgement on an individual employee’s
performance against each rating element. Positive and negative phrases are given asking the rater
to indicate applicability of such phrases as objectives in describing the employee whose
performance is rated. For its obvious complexity, this system is not much in use.

3. 7. Forced Distribution Method:
It is a method to evaluate employees’ performance according to a predetermined distribution
scale. To take an example, under such a method, the rate is asked to distribute 5 per cent of the
total employees on top of the scale, indicating their superior performance and promotability, 10
per cent may be put immediately under this level, indicating their good performance and future
promotability. This system is easy to understand and can be applied in organizations without
much hassles.
8. Checklist Method:
It is a mere process of reporting employees’ performance, compiling yes/no responses. Final
rating is done by the personnel vis-a-vis HRD department based on such reports. Since this is not
an objective method of appraisal, it is not free from bias.
9. Free Easy Method:
It is open-ended qualitative appraisal of employees’ performance, giving an opportunity to the
rater to put down his impression in subjective form on the important job factors. Since it is
descriptive and essay type, it is likely to be biased, and judgmental errors may crop in.
10. Critical Incident Method:
This method measures employees’ performance in terms of certain ‘events’ or ‘critical incidents’
instrumental for success or failure on the job. Such critical incidents are identified by the rater
after in-depth study of the employees’ working. As negative incidents get more focus and since
recording of incidents demands for the utmost care, this method is not free from defects.
11. Group Appraisal Method:
It is an evaluation of an employee by multiple judges. The immediate supervisor of the employee
and a few other top-level personnel discuss the performance standards and then evaluate the
performance of the employee. The greatest advantage of this method is that it is relatively free
from bias, even though it is time consuming.
12. Field Review Method:
This type of review is conducted by the HR department by interviewing the supervisor of an
employee to understand the subordinate employees’ performance. Normally, for such type of
appraisal, the appraiser, i.e., the representative of the human resource department, gets equipped
with certain questions and asks those questions about the employees, whose performances are to
be reviewed, to their respective supervisors, more in the form of informal interview.
Since this process of appraisal is an indirect method of appraising the performance, it may not
always reflect the true performance level of the subordinate employees. Such an interview

4. always has sensitizing effect on the interview, whose responses may be some opinionated
generalization.
Moreover, this method keeps the key managerial personnel always busy for appraisal. Despite
such defect, organizations prefer to have this type of appraisal for lower-level employees, since
this process is simple and easy to administer.
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III. Performance appraisal methods
1.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. The “whole man” is compared with another “whole man”
in this method. In practice, it is very difficult to compare
individuals possessing various individual traits.
ii. This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. Rating Scale

5. Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages – Rater’s biases
3. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings
4. Critical Incidents Method
The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

6. 5. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.
6. Behaviorally Anchored Rating Scales
statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.
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