Types of performance appraisal methods

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I. Contents of getting types of performance appraisal methods

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A performance appraisal provides feedback on an employee's performance during the evaluation
period. This feedback is useful to both the employee being appraised as well as the management
of the organization. Several major decisions, such as promotions, wage hikes, transfers and
terminations, are taken on the basis of performance appraisals. Also, allocation of organizational
resources is facilitated by this.
A good appraisal system ensures the communication flow is enhanced, and organizational
diagnosis and development are enhanced. The types of appraisal systems are broadly classified
under two heads: Individual Appraisal Systems and Multiple Person Appraisal Systems.
Individual Appraisal Methods
Under this classification, the employee's performance in the given period is studied. Common
forms of these are Annual Confidential Reports (ACR), Essay Evaluation, Management by
Objectives (MBO) and Check list methods. These forms only study the employee's strengths and
weaknesses in performance.
Confidential Reports
is is perhaps the oldest technique. This is a report prepared by the employee's senior
wherein he highlights the subordinate's strengths and weaknesses of performance in the past year.
The inherent flaw here is that the feedback on the report prepared is not provided to the
employee for whom this has been written because every report is kept confidential.

Critical Incident and Checklist Techniques

In this method, the superiors study and analyze the subordinate's best and worst incidents of
behavior in the past year. That is the most critical incidents are analyzed.
In the Checklist Technique, the supervisor is given a paper that has a set of statements that are
expressive and purposive in nature, and the answers to which are "Yes" or "No." The usual and
typical questions are whether or not the performance was satisfactory and whether or not the
standards were met.
Multiple Persons Appraisal Methods
This classification type compares the performances of all employees in a particular department.
They are pitted against one another to see who has been the best performer and who has been the
worst. Ranking, Paired Comparison, Forced Distribution, Performance Tests and 360-Degree
Appraisal Techniques are all examples of Multiple Person Appraisal Systems.
360-Degree Appraisal Method
Various stakeholders, such as the employee's immediate superior, other superiors who are not the
bosses but who are in contact with the employee on a daily basis, the top management and the
employee's subordinates, all provided data on his performance.
All 360 degrees of the employee's working and working style are analyzed but involve the whole
circle of individuals with whom the employee interacts for work. This feedback is then passed
onto the employee to increase productivity.
Paired Comparison Method
The superior compares each individual to all the other individuals working in his team. The
subordinates are all ranked on the basis of criteria and traits analyzed. The comparison system
could be from the best to the worst or the worst to the best.
Management by Objectives
In this method, the emphasis is on tangible and measurable goals. The key result areas (KRA)
and the means to attain maximum results are concentrated upon. Here, the superior lets her team
know the KRAs and the results expected at the end of the year. Also, the work is delegated, and
the authority responsibility relationship is defined.

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III. Performance appraisal methods

1. 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.

2. 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.

3. 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 Raters biases

4. 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

5.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
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
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.
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.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. 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.

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