This document discusses and compares traditional and modern methods of performance appraisal. It outlines 6 modern methods: assessment centre, appraisal by results (MBO), human asset accounting, behaviorally anchored rating scales (BARS), and 360-degree feedback. For each method, it provides a brief description and highlights their advantages as providing frequent feedback, being more developmental, and grouping rewards organizationally rather than individually. It also notes potential disadvantages like being subjective and a waste of time if not done correctly.

1. Critical review of Modern Performance
Appraisal Methods
1)Pooja Thatikonda - 201743
2)Priyanka Thorat - 201744
3)Sudhir Upadhyay - 201745
4)Veerlaxmi - 201746
5)Dinesh Yadav - 201748
6)Abhishek Chukka - 201780
Presented By:-

2. 1. What is Performance Appraisal ?
2. Why performance appraisal important for an organization and
its Objective ?
3. Difference between Traditional and Modern method of
Appraisals
4. What are modern methods of Performance Appraisal ?
5. Advantages & Disadvantages.
6. Conclusion
Learning Objectives

5. Difference between Traditional and Modern method of Appraisals
Categories Traditional method of
Appraisals
Modern Method of
Appraisals
Guiding Values
Individualistic,Control
oriented, Documentary
Systematic,
Developmental,
Problem solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low
Rewards Individualistic Grouped,
Organizational

6. Modern Method of Performance Appraisal
1. Assessment Centre
2. Appraisal by Results or MBO
3. Human Asset Accounting Method
4. Behaviorally Anchored Rating Scales ( BARS)
5. Multi rater or 360-Degree Feedback

7. Assessment Centre
At an Assessment Centre, usually off site , multiple
rater’s or evaluators evaluate employees performance on
various exercises.
4 -Types of Assessment Exercises:-
1)Leaderless group discussion
2)Interviews
3)In- Baskets
4)Role plays

8. MBO ( Management By Objective)
A process whereby the superior and subordinate of the
organization jointly identify its common objectives, define
each individual’s major areas of responsibility.
1. Establishment of Goals
2. Setting the performance standard
3. Actual level of job attainment is compared with the goals
agreed upon.
4. Establishing new goals and new strategies for goals not
previously attained.

9. Human Asset Accounting Method
1. Human resources are a valuable asset for any
organization and it can be valued in monetary terms.
2. This method evaluates the performance of an
employee in terms of costs and contributions.
3. HR costs include expenses incurred on HR planning,
recruitment, selection, induction and training.
4. The difference between this costs and the contribution
by an employee reflects the performance of that
employee.

10. Behaviorally Anchored Rating Scales (BARS)
1. This method combines the graphic rating scale and the critical
incident method.
2. It consists of predetermined critical areas of job performance
or sets of behavioral statements describing important job
performance qualities as good or bad.
3. Behaviorally Anchored Rating Scales (BARS) are designed
to bring the benefits of both qualitative and quantitative data
to the employee appraisal process.
4. In this method, an employee’s actual job behavior is judged
against the desired behavior by recording and comparing the
behavior with BARS.

13. Advantages of Modern Method of Appraisal
1. They provide a record of performance over a period of time.
2. They provide an opportunity for a manager to meet and discuss
performance with an employee.
3. Provide the employee with feedback about their performance and
how they completed their goals.
4. Provide an opportunity for an employee to discuss issues and to
clarify expectations with their manager.
5. Offer an opportunity to think about the upcoming year and
develop employee goals.
6. Can be motivational with the support of a good reward and
compensation system.

14. Disadvantages of Modern Method of Appraisal
1. If not done appropriately, can be a negative experience.
2. Are based on human assessment and are subject to rater errors and
biases.
3. If not done right can be a complete waste of time.
4. Can be stressful for all involved.

15. Conclusion
1. Performance appraisal is a systematic and objective way of judging
the relative worth of ability of an employee in performing his/her task
2. It helps to identify those who are performing their assigned tasks well
and those who are not and the reasons for such performance.
3. Modern method of appraisal provide real time performance feedback
of employee.
4. employee appraisal should be a continuous process and should not be
limited to a formal review once a year.