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Methods of performance appraisal

Detailed explanation about methods of the performance appraisal, and the definition of performance appraisal with detailed information.

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Methods of performance appraisal

  1. 1. METHODS OF PERFORMANCE APPRAISAL Name: Y.Nageshwar Reddy Class:BBA IInd year
  2. 2. Performance Appraisal. Performance appraisal can be described as a systematic evaluation of performances of several employees so that they can understand all abilities of a person and their development and growth. Performance appraisal is also done in a very systematic manner which includes measuring the pay of employees and comparing it with all plans and targets.
  3. 3. Methods Of Performance Appraisal  The methods of performance appraisal are as follows A. TRADITIONAL METHODS. B. MODERN METHODS.
  4. 4. A.Traditional methods are as follows 1. Ranking Method 2. Paired Comparison 3. Grading Method 4. Forced Distribution Method 5. Forced-Choice Method 6. Check-List Method 7. Critical Incidents Method 8. Graphic Rating Scale Method 9. Essay Method 10. Field Review Method 11. Confidential Report
  5. 5. 1. Ranking Method: It is the oldest and simplest formal systematic method of performance appraisal in which employee is compared with all others for the purpose of placing order of worth. The employees are ranked from the highest to the lowest or from the best to the worst. 2. Paired Comparison: In this method, each employee is compared with other employees on one- on one basis only. The rater is provided with a bunch of slips each coining pair of names, the rater puts a tick mark against the employee whom he insiders the better of the two.
  6. 6. 3. Grading Method: In this method, certain categories of worth are established in advance and carefully defined. There can be three categories established for employees: outstanding, satisfactory and unsatisfactory. The employee is, then, allocated to the grade that best describes his or her performance. 4. Forced Distribution Method: This method assumes that employees performance level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for rating a large number of employees’ job performance and promo ability. It tends to eliminate or reduce bias.
  7. 7. 5. Forced-Choice Method: Under this method, the rater is forced to answer the ready-made statements as given in the blocks of two or more, about the employees in terms of true or false. Once he is done with the list, it is forwarded to the HR department for the final assessment of the employee.
  8. 8. 6. Check-List Method: The basic purpose of utilizing check-list method is to ease the evaluation burden upon the rater. In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’ are prepared by the HR department. The check-list is, then, presented to the rater to tick appropriate answers relevant to the appraise. Each question carries a weight-age in relationship to their importance.
  9. 9. 7. Critical Incidents Method: The critical incident method requires the rater to record statements that describe extremely good or bad behavior related to job performance. The statements are called critical incidents and are usually recorded by the supervisor during the evaluation period for each subordinate. Recorded incidents include a brief explanation of what happened.
  10. 10. 8. Graphic Rating Scale Method: The graphic rating scale is one of the most popular and simplest techniques for appraising performance. It is also known as linear rating scale. In this method, the printed appraisal form is used to appraise each employee.
  11. 11. 9. Essay Method: Essay method is the simplest one among various appraisal methods available. In this method, the rater writes a narrative description on an employee’s strengths, weaknesses, past performance, potential and suggestions for improvement. Its positive point is that it is simple in use. It does not require complex formats and extensive/specific training to complete it.
  12. 12. 10. Field Review Method: This is an appraisal done by someone outside employees, own department usually from corporate or HR department. Advantages: Useful for managerial level promotions, when comparable information is needed. Disadvantages: Outsider is generally not familiar with employees work environment, Observation of actual behaviors not possible.
  13. 13. 11. Confidential Report: It is the traditional way of appraising employees mainly in the Government Departments. Evaluation is made by the immediate boss or supervisor for giving effect to promotion and transfer. Usually a structured format is devised to collect information on employee’s strength weakness, intelligence, attitude, character, attendance, discipline, etc.
  14. 14. B.Modern methods are as follows. 1. Management by Objectives (MBO) 2. Behaviourally Anchored Rating Scales (BARS) 3. Assessment Centers 4. 360 – Degree Appraisal 5. Human Resource Accounting
  15. 15. 1. Management by Objectives (MBO): The concept of MBO can be described as a “process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each its members”.
  16. 16. 2. Behaviourally Anchored Rating Scales (BARS): Behaviourally Anchored Rating Scales (BARS) are designed to bring the benefits of both qualitative and quantitative data to the employee appraisal process. BARS compare an individual’s performance against specific examples of behaviour that are anchored to numerical ratings.
  17. 17. 3. Assessment Centers: An assessment center is a central location where the managers may come together to participate in job related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, by observing and later evaluating their behaviour.
  18. 18. 4. 360 – Degree Appraisal: In 360-degree appraisal system, an employee is appraised by his supervisor, subordinates, peers, and customers with whom he interacts in the course of his job performance. All these appraisers provide information or feedback on an employee by completing survey questionnaires designed for this purpose.
  19. 19. 5. Human Resource Accounting: Human resource method attaches money values to the value of a firms internal human resources and its external customer good will. Under this method, performance is judged in terms of costs and contributions of employees. Difference between the cost and contribution will reflect the performance of the employees.
  20. 20. THE END

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Detailed explanation about methods of the performance appraisal, and the definition of performance appraisal with detailed information.

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