Concepts and Methods of Performance Appraisal

7/28/2019 Concepts and Methods of Performance Appraisal

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BYSPRIHA GOYAL

DIVYA KERKETTA


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Meaning

Performance:-how effectively an employee carryout their job responsibility.

Appraisal:- an act of assessing

Performance appraisal:-it is the process ofassessing the performance of an employee and to

understand the abilities of a person for furthergrowth and development.


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According to flippo performance appraisal

is the systematic, periodic and an impartialrating of an employees excellence in matters

pertaining to his present job and his

potential for future job.


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Characteristics

Description of an employees job relevant strengths

and weaknesses Informal or formal

It is not job evaluation

Continuous process

Consistent in the sense that it tries to evaluateperformances in the same manner using sameapproach


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Importance Performance improvement

Compensation adjustment

Promotions

Transfers

Training and development needs

Effectiveness of selection process

Human resource planning


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Methods of performance appraisal

Traditional methods Modern methods

Ranking method

Paired comparison

Graphic rating scale method

Checklist method

Critical incidents method

Grading

Forced choice description

methodEssay method

Field review

Group appraisal

Behaviourally anchored rating

scales

Assessment centres

360-degree apraisal

Management by objective


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Rank method

It is a preparation of merit list. The evaluatorassigns ranks to each employee from best topoorest on the basis of overall performance.

Easy to develop for small no. of employees

Oldest and simplest method

Demerits:

Difficult when large number of person are to berated

It tells us how a person stands in relation to theothers in group but does not indicate how much

better or worse he is than another.


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Paired comparisonIn this method, each person is compared with other person

taking only one at a time.

A chart is made of all possible pairs of employees for each

trait(quality of work, quantity of work, and so on). The rater put a plus(+) sign against the person whom he

considers the better of the two, and the final ranking isdetermined by the number of the times that person is

judged better than others Formula to calculate the number of comparisons.

Here N is the number of persons to be compared.

N (N-1)/2


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Paired comparisonAS

COMPAREDT0

A B C D E FINALRANK

A - - + + 3

B + - + + 2

C + + + + 1

D - - - + 4

E - - - - 5


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Graphic Scale Method

It is a numerical scale indicating different degrees of a particular trait. The rater is given a printed form for each employee to be rated.

The form contains several characteristics(intelligence,quantity of work,quality of work, job knowledge)

The rater records his judgment on the employees traits on the scale.

poor average good excellent

(1) (2) (3) (4)

Quantity of work

Quality of work

Job knowledge

attitude


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Critical Incidents Method

The supervisor keeps a written record of critical eventsand how different employees behaved during suchevents

The rating of an employee depends on his

positive/negative behaviors during these events.Merits:-

It improves the ability of the superior as an observer.

It provides an immense guidelines for counseling.

Demerits:- Time consuming to maintain a written record for each

employee during every major event.

The supervisor may commit errors in recording behavior

of different employees.


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Check-list method

In this method, the rater provides appraisal report byanswering a series of questions related to appraise.These questions are prepared by HR department and arerelated of the appraise is concerned. When this checklist

is completed, it is sent to HR department, then, totalscores are calculated which show the appraisal result ofan employee.

Examples of the questions

1. Is he/she interested in the job? yes/no

2. Is he/she regular on the job? yes/no

3. Does he/she show uniform behavior to all?

yes/no


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Grading Method

Under this method, grades are assigned on the

basis of certain categories of worth which areestablished in advance and carefully defined.

The actual performance of the employees is

measured against these grades


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Forced Choice Description Method Under this method there are 2 pairs of statements in

each group, one may be favourable and the other

pair may be unfavourable and the rater has tochoose one out of each pair.


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Essay or Free Form Appraisal

Method In this method the evaluator writes a report

expressing about the strong as well as weak points

of the employees behavior.

While preparing the essay on the employee, the

rater considers the following factors:

Job knowledge

Potential of the employee

Relations with the co-workers and superiorsUnderstanding of the organisational plans and

policies


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Group Appraisal Method Under this method, employees are rated by a group

of evaluators, consisting of their supervisor and other

supervisors who have some knowledge of their

performance.


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Field Review Method In this method the rater goes to the work field and

take interviews of the supervisors to evaluate and

rate their respective subordinates.


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Modern Methods of

Performance Appraisal


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Behaviorally Anchored Rating

Scales (BARS) This method combines the benefit of traditional

rating scales and critical incident method.

It is an employee appraisal system where raters

distinguish between successful and unsuccessful job

performance by collecting and listing critical job

factors.


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Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions for

increased sales and to have positive relationships with

customers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughout

the year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by the

supervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roam aroundpurposelessly.

Example of BARS


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Assessment Centre Method In this method tests and exercises, assignments

being given to a group of employees to assess their

competencies.

Generally, employees are given an assignment

similar to the job they would be expected to perform

if promoted.


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360 Degree Performance Method It is the most comprehensive appraisal where the

feedback about the employees performance comes

from all the sources i.e. by superiors, peers,subordinates, and self appraisal.


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Management by Objectives (MBO)

Management by objectives is a process whereby

the superior and subordinate managers of anorganisation jointly identify its common goals, define

each individuals major areas of responsibility in

terms of the results expected of him, and use these

measures as guides for operating the unit andassessing the contribution of each of its members.


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Contd.

MBO is a method of mutual goal-setting, measuring

progress towards the goals, taking action to assuregoal attainment and feedback.


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Conclusion

In traditional methods, evaluators lay emphasis on

the rating of the individuals personality traits. But inmodern methods they place more emphasis on the

evaluation of work results i.e job achievements.

Results oriented appraisals are tend to be more

worthwhile.


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Reference Human resource management by Dr.C.B.Gupta

Human resource management by Dr.Ajay Kr. Singal

Human resource managemant by L.M.Prasad


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Concepts and Methods of Performance Appraisal