Methods of Performance Appraisal

1. INSTITUTE FOR EXCELLENCE IN HIGHER
EDUCATION (IEHE),BHOPAL
TOPIC: TRADITI0NAL METHODS OF PERFORMANCE APPRAISAL
SUBJECT :PERSONNEL MANAGEMENT AND INDUSTRIAL RELATIONS
CLASS: BCOM MANAGEMENT “B” 3rd YEAR
ASSIGNED BY: MADE BY:
DR.PREETI MISHRA ABDUL ALI KHAN(220102)
(DEPARTEMENT OF COMMERCE) MOHD UNEEB (220129)
MOHD HAMZA SIDDIQUI(220128)
RAJARSHITA PANDEY(220153)
SAMIKSHA PATEL (220138)

2. Performance Appraisal
PERFORMANCE APPRAISAL IS THE SYSTEMATIC
EVALUATION OF THE PERFORMANCE OF EMPLOYEES AND
TO UNDERSTAND THE ABILITIES OF A PERSON FOR
FURTHER GROWTH AND DEVELOPMENT.

3. IMPORTANCE OF PERFORMANCE
APPRAISAL
 Creates Career Growth Opportunities
 Improves Employee Performance
 Helps Determine Training Requirements
 Helps Highlight Areas For Improvement
 Develops Team Bonding
 Helps Communicate The Company Vision Clearly

4. TRADITIONAL METHODS OF
PERFORMANCE APPRAISAL
 Confidential Report
 Straight Ranking Method
 Free Form or Essay
Method
 Paired Comparison
Method
 Forced Distribution
System
 Graphic Rating Scales
 Checklist Method
 Critical Incidents method

5. CONFIDENTIAL REPORT
 This method is mostly used in government organizations
to make decisions regarding promotion and transfer of
the employees. The senior prepares the confidential
report on the performance, behavior and other traits of
the employee. The report is supposed not to be revealed
to anyone. It is sent in a sealed cover to the concerned
officials who appraise the employee on the basis of this
report and take decisions accordingly

6. STRAIGHT RANKING METHOD
 In this technique, the evaluator assigns relative ranks to
all the employees in the same work unit doing the same
job. The evaluator provides a rank to the employees from
good to poor on the basis of their performance.

7. PAIRED COMPARISON METHOD
 This traditional method of appraisal is a modification to
the straight ranking method. Under this method, unlike
the straight ranking method, all the employees are put to
relative comparisons. After the comparison, the employee
gets a rank on the basis of his status of being better than
other employees.

8. FREE FORM OR ESSAY METHOD
 Under this method, the evaluator writes a short essay on
the employee’s performance on the basis of overall
impressions. It provides a good amount of information
about the employee. This method suffers some
drawbacks like biases due to the high level of
subjectivity, the dependence of evaluation on the writing
ability of the evaluator , etc.

9. FORCED DISTRIBUTION METHOD
 In this technique, the rater distributes his rating in the form of a
normal frequency distribution. Its basic purpose is to eliminate the
rater’s bias of central tendency. This method is extremely easy to
apply and understand. One of the disadvantages of this method is
that the rater cannot explain why an employee is there in a particular
category.

10. GRAPHIC RATING SCALE
 It is a numerical scale which states different degrees of a particular
trait. under this method, the company or organization provides a form
to each evaluator. Each form contains many characteristics relating
to the personality and performance of the employee. Hence, the rater
records his judgment on the employee’s trait on the scale.

11. CHECKLIST METHOD
 A checklist is nothing but a list of statements that describe the
characteristics and performance of employees on the job. the rater
ticks/checks to indicate if the employee possesses any specific
trait/quality or not. Hence, the number of ticks describe the rating or
result of the employee.

12. CRITICAL INCIDENTS METHOD
 Critical incident method gives emphasis on critical behaviors of
employees such as the reaction of employee to a certain situation. So
in this method, the performance is evaluated against a list of critical
behaviors.