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Various methods of performance appraisal
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I. Contents of getting various methods of performance appraisal
==================
Want to know the right way to motivate employees? Begin by choosing the right performance
appraisal method to judge where the scope for improvement exists within your organization.
Different Methods of Performance Evaluation
Performance Evaluation Techniques Performance appraisal is a critical management tool to
evaluate the performance of employees and their contribution to achieving the organization’s
goals. Different companies employ different performance appraisal methods to assess individual
performance. Each method has its own pros and cons because performance cannot be objectively
quantified 100% accurate in each and every case. Therefore, some amount of subjectivity gets
introduced into each method.
Management by Objectives (MBO)
One of the most contemporary and widely accepted approaches that is used in place of
conventional performance appraisal techniques is MBO. This is a more involved process that
begins from goal setting and ends with evaluation of the results and measurement of deviations
from the goals. It involves constant engagement with employees aiming to enhance their
performance through constant monitoring and correcting deviations along the way. The emphasis
here is on not just assessing the performance, but also providing regular and specific feedback to
the employee so that he gets an opportunity to improve his performance by addressing the
specific issues of concern. A large number of organizations are adopting this method of
performance appraisal because of its more comprehensive approach.
Critical Incident Method
The manager or the supervisor evaluates performance on the basis of certain specific incidents
or behavioral actions, whether positive or negative, within a given period of time. The appraiser
keeps a note of such specific incidents throughout the evaluation period and makes a final
assessment at the end.
Graphic Ratings Method
This is one of the traditional ways to appraise an employee’s performance. The manager keeps
a ratings form where the employee’s behavior and actions are rated on certain specific
parameters outlined in the form. Based on these ratings a final appraisal is prepared by the
manager.
Weighted Checklist Method
In this case, the manager who is intimately familiar with the jobs under evaluation prepares a
comprehensive checklist of what constitutes an effective or ineffective behavior on the job. Each
item on the checklist has a different weightage depending on its significance and impact on the
company’s goals. This helps to achieve a more objective and quantified appraisal of individual
performance.
Performance Ranking Method
In this method, each employee’s performance is not evaluated in isolation, but in comparison
to other employees. The performance is ranked for the entire group of employees from best
performer to the worst performer. In this case, the appraiser compares individual performances to
determine the benchmarks of performance, and then rates each individual based on those
benchmarks.
360 Degree Performance Appraisal
The 360 degree performance appraisal method employs multiple approaches to evaluate
individual performance. The manager makes assessment of an employee based on certain
parameters and also makes comparisons between performances of different employees. This
method also includes confidential feedback of employees and supervisors. Subsequently, all the
data is put together and analyzed to have a comprehensive performance evaluation of an
employee.
==================
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
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.
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.
III. Other topics related to Various methods of performance appraisal (pdf
download)
• Top 28 performance appraisal forms
• performance appraisal comments
• 11 performance appraisal methods
• 25 performance appraisal examples
• performance appraisal phrases
• performance appraisal process
• performance appraisal template
• performance appraisal system
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• performance appraisal questions
• performance appraisal techniques
• performance appraisal format
• performance appraisal templates
• performance appraisal questionnaire
• performance appraisal software
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• performance appraisal interview
• performance appraisal phrases examples
• performance appraisal objectives
• performance appraisal policy
• performance appraisal letter
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Various methods of performance appraisal

  • 1. Various methods of performance appraisal In this file, you can ref useful information about various methods of performance appraisal such as various methods of performance appraisal methods, various methods of performance appraisal tips, various methods of performance appraisal forms, various methods of performance appraisal phrases … If you need more assistant for various methods of performance appraisal, please leave your comment at the end of file. Other useful material for you: • performanceappraisal123.com/1125-free-performance-review-phrases • performanceappraisal123.com/free-28-performance-appraisal-forms • performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal I. Contents of getting various methods of performance appraisal ================== Want to know the right way to motivate employees? Begin by choosing the right performance appraisal method to judge where the scope for improvement exists within your organization. Different Methods of Performance Evaluation Performance Evaluation Techniques Performance appraisal is a critical management tool to evaluate the performance of employees and their contribution to achieving the organization’s goals. Different companies employ different performance appraisal methods to assess individual performance. Each method has its own pros and cons because performance cannot be objectively quantified 100% accurate in each and every case. Therefore, some amount of subjectivity gets introduced into each method. Management by Objectives (MBO) One of the most contemporary and widely accepted approaches that is used in place of conventional performance appraisal techniques is MBO. This is a more involved process that begins from goal setting and ends with evaluation of the results and measurement of deviations from the goals. It involves constant engagement with employees aiming to enhance their performance through constant monitoring and correcting deviations along the way. The emphasis here is on not just assessing the performance, but also providing regular and specific feedback to the employee so that he gets an opportunity to improve his performance by addressing the
  • 2. specific issues of concern. A large number of organizations are adopting this method of performance appraisal because of its more comprehensive approach. Critical Incident Method The manager or the supervisor evaluates performance on the basis of certain specific incidents or behavioral actions, whether positive or negative, within a given period of time. The appraiser keeps a note of such specific incidents throughout the evaluation period and makes a final assessment at the end. Graphic Ratings Method This is one of the traditional ways to appraise an employee’s performance. The manager keeps a ratings form where the employee’s behavior and actions are rated on certain specific parameters outlined in the form. Based on these ratings a final appraisal is prepared by the manager. Weighted Checklist Method In this case, the manager who is intimately familiar with the jobs under evaluation prepares a comprehensive checklist of what constitutes an effective or ineffective behavior on the job. Each item on the checklist has a different weightage depending on its significance and impact on the company’s goals. This helps to achieve a more objective and quantified appraisal of individual performance. Performance Ranking Method In this method, each employee’s performance is not evaluated in isolation, but in comparison to other employees. The performance is ranked for the entire group of employees from best performer to the worst performer. In this case, the appraiser compares individual performances to determine the benchmarks of performance, and then rates each individual based on those benchmarks. 360 Degree Performance Appraisal The 360 degree performance appraisal method employs multiple approaches to evaluate individual performance. The manager makes assessment of an employee based on certain parameters and also makes comparisons between performances of different employees. This method also includes confidential feedback of employees and supervisors. Subsequently, all the
  • 3. data is put together and analyzed to have a comprehensive performance evaluation of an employee. ================== 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
  • 4. 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.
  • 5. 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. III. Other topics related to Various methods of performance appraisal (pdf download) • Top 28 performance appraisal forms • performance appraisal comments • 11 performance appraisal methods • 25 performance appraisal examples • performance appraisal phrases • performance appraisal process
  • 6. • performance appraisal template • performance appraisal system • performance appraisal answers • performance appraisal questions • performance appraisal techniques • performance appraisal format • performance appraisal templates • performance appraisal questionnaire • performance appraisal software • performance appraisal tools • performance appraisal interview • performance appraisal phrases examples • performance appraisal objectives • performance appraisal policy • performance appraisal letter • performance appraisal types • performance appraisal quotes • performance appraisal articles