This document outlines various traditional and modern methods used for performance appraisals. The traditional methods include unstructured, ranking, paired comparison, grading, and checklist. Paired comparison involves systematically comparing each employee to determine rankings. Grading assigns employees to predefined performance categories. Checklists have descriptive statements to assess qualities. Modern methods discussed include behavioral anchored rating scales, management by objectives, psychological appraisals, and 360 degree feedback. Forced distribution requires raters to appraise employees according to a predetermined scale. Critical incident method uses logs of effective and ineffective employee behaviors recorded over time.

1. Methods of Performance Appraisal
There are two types of Performance Appraisal methods
1. The Traditional Methods

Unstructured method

Straight ranking method

Paired comparison method

Man-to-man analysis

Grading Method

Checklist method

Critical Incidents method

Field Review method

Confidential report

2. 2. Modern Methods

BARS( Behaviorally Anchored Rating
Scales)

MBO(Management By Objectives)

Psychological Appraisals

360 Degree feedback

3. Paired Comparison
• The paired comparison method involves
comparing each employee with each other
employee in the group.
• Based on the comparison a Ranking systemis
developed.
• This Ranking system is considered more reliable
as it is based on a systematic method of
comparison and evaluation.
• This method is not applicapable when the group
is large

4. Example;
For instance, when there are 5 employees to
be compared, then A's performance is
compared with that of B's and decisions is
arrived at as to who is better or worse.
Next, B is compared with all the others
except for A as that comparison is already
made. So B is compared with C, D and E.
By this method,the number of decisions to
be made can be determined with the help of
the formulae n(n-2). So 5(5-2)=5(3)=15,
hence 15 decisions are to be made on the
basis of the comparison.

5. Grading System
• In this method, the performance of the
employee are determined in advance and
defined as categories.
• The Categories can be Grade 'A' for an
outstanding performance, Grade 'B' for an
excellent performance and C can be for
average and D for poor.
• Jet airways follows this traditional
method till date for their cabin crew
evaluation and appraisal.

6. Forced Distribution
• In this method, the rater is asked to appraise
according to a predetermined distribution scale.
• Normally the two criterias used here for rating
are the job performance and promotability.
• Employees are placed between the two
extremes of 'good' and 'bad' performances.
• Here the favorable qualities earn a plus credit
and the unfavorable qualities earn the reverse.
• This method tends to eliminate the raters
bias.

7. Example
For Instance, the workers of outstanding
merit maybe placed at the top 10% of the
scale.
The rest maybe be placed as
20%-good
40%- outstanding
20%- fair
10%-poor
The forced distribution method assumes that
all top grade workers should go to the
highest 10% grade, 20% employees should
go to the next highest grade and so on.

8. Checklists Method
• This method is the simplest form of
appraisals, as a set of objectives or
descriptive statements about the
employee and his behavior is assessed.
• The rater assesses the qualities
possessed by the employee and checks
the checklist, otherwise he leaves the
item blank on the list.

9. Example
• Is the employee really interested in the
task
assigned? yes/no
• Is he respected by his colleagues?
yes/no
• Does he respect his superiors?
yes/no
• Does he follow the given instructions
• appropriately?
yes/no
• Does he make mistakes frequently?
yes/no

10. Critical Incident Method
• In this method, the manager prepares list of
statements of very effective and ineffective
behavior of an employee.
• Critical incidents or events represent the
outstanding or poor behavior of employees on
the job.
• Generally, the manager maintains logs on
each employee, whereby he periodically
records critical incidents of the workers
behavior.
• At the time of evaluation, these recorded
incidents are used.

11. Example
Record of a sales assistant
Good critical incident
July, 20- The sales assistant patiently attended to the
customer's complaint. He was polite, prompt,
enthusiastic in solving the customer's problem.
Bad critical incident
July, 20- The sales assistant stayed 45 minutes over
on his break during the busiest part of the day. He
failed to answer the store manager's call thrice. He is
lazy, negligent and uninterested in work.
All travel agents follow this method. Travel agents
mainly impose this method on the marketing team
and specialized teams like MICE, Domestic tour team,
International tours team, etc,. This method is
particularly done during peak seasons to evaluate the
employees responsiveness and interest in work.

12. Free Essay Method
• This method involves a written essay by
the superior on the employees
performance.
• It is an open ended process and suffers
from subjectivity.
• Here the rater is asked to express the
strong as well as weak points of the
employees behavior.
• The rater generally considers the
following factors;
1.Job knowledge and potential of the
employee.

13. 2. Employees understanding of the company's programmes,
policies and objectives
3. The employees relation with co-workers and superiors
4. The employees general planning, organizing and
controlling ablility,
5. The attitudes and perceptions of the employee in general.
• This method is a non-quantitative technique.
• It is highly subjective as the supervisor may write a
biased essay.
• Some evaluators may be poor in writing essays on
employees performance.
• This method is very time consuming for the evaluator.
• The assessment is hurried in this method due to time
constraints.

14. Thank You