Paired comparison method of performance appraisal

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I. Contents of getting paired comparison method of

performance appraisal
==================
Performance appraisal is a systematic process that evaluates an individual employees
performance in terms of his productivity with respect to the pre-determined set of objectives. It is
an annual activity, which gives the employee an opportunity to reflect on the duties that were
dispatched by him, since it involves receiving feedback regarding their performance. It also
evaluates the individuals attitude, personality, behaviour and stability in his job profile. There
are various applications of appraisals like compensation, performance improvement, promotion,
termination, test validation, and much more. Various performance appraisal methods are
followed by organisations to ensure fair appraisals to their employees. Appraisals facilitate
communication between the management and the employees, which helps in conveying the
expectations of the management to the employee and vice versa. The frequency of appraisals
varies. Most MNCs offer them annually, some opt for shorter cycles like half yearly, or quarterly,
or even monthly, if the employees performs exceptionally at his job. It is subjective to the
performance appraisal method that is used, and the purpose of the appraisal. In case of startups, it
has been observed that shorter cycles are preferred, so that they can motivate their employees
more frequently to perform better.
The criteria for performance appraisal methods are based on various aspects like productivity,
quality of work, duration of service and training. Productivity is measured mostly in the case of
manufacturing i.e. the number of units manufactured or delivered by the employee. In case of
quality of work, precision of the work done is taken into consideration. Duration of services is

used as a criterion by Government entities, where they assume the longest serving employee to
be the deserved one for an appraisal. When an employee is hired in an organisation, his appraisal
is subjective to the speed at which he grasps things and information he is exposed to.
The top 10 performance appraisal methods based on the above-mentioned criteria are listed
below:
Assessment Centre Method
The purpose of this method is to test candidates in social situations. It can be used by startups for
evaluating employees serving at senior level. This method of evaluation is helpful for assessing
managers, who have to deal with their subordinate, peers and supervisors for day-to-day
business. It helps employers understand the capacity and the capability of the individual in social
settings. It involves using situational exercises like an in-basket exercise, role-playing incident,
business game and many other similar exercises. It gives the employer an insight to the
personality of the employee like openness, tolerance, introversion/extroversion, acceptability,
etc.
Behaviourally Anchored Rating Scale
This is latest a modern appraisal technique, which has been developed recently. It is claimed that
the Behaviourally Anchored Rating Scale method is one of the most equitable technique
compared to other methods of appraisals. It is a combination of narrative techniques like essay
evaluation and quantifiable techniques like rating scale. It is comparatively more expensive than
other techniques, but it usually guarantees precision and effectiveness.
Critical Incident Technique
This technique is similar to the essay evaluation method. It involves making statements that
describes both the positive and the negative reactions to stimulus by the employee at his work
place. The statements are recorded cumulatively in a given period of time, so that one can
evaluate how good the employee is at his job. His proficiency will be determined by how he
deals with his day-to-day activities. The appraiser in this method is usually the direct supervisor
or manager under whom the employee is serving. This technique is not only used for
performance appraisals but also utilized in job interviews. The interviewer gives scenarios to the
interviewee and asks them, how they would react to the given scenarios.
Essay Evaluation
The essay method is an affordable and effective way of appraising employees, especially in
startups. This method involves writing a detailed descriptive essay of the performance by the
employees direct supervisor or manager. The essay concentrates on describing the various
strengths, weaknesses, attitude and behaviour of the individual towards job duties. This method
is less structured and thus gives the appraiser an opportunity to explore and describe niche
qualities or shortcomings of the employee that need to be worked on. It is far less complicated to
execute compared to the other methods, only if biases could be kept at bay.

Human Asset Accounting Method

This is a very commercial and practical performance appraisal method for organisations. In this
scenario, the human capital is associated with the amount of revenue that individual generates, or
the number of happy customers, or the number of leads generated in sales. It is a fair process
from the point of view of the organisation and the employee, because it directly indicates the
profitability of the company. This method is adopted by most startups, since it is easy to execute
and track. Therefore, the amount of business generated by an employee determines whether he
deserves to be promoted or terminated.
Management By Objective
A rather interactive and fair form of appraisal, the Management By Objective method is less time
consuming and of course cost effective. The technique involves setting up of objectives and
goals for the employee either by the employer, or his manager, or both employee and employer.
This performance appraisal method helps the employee to perform better, because he is well
aware of his goals and already knows the quality and quantity that needs to be delivered. It has
been observed that when both employee and employer together decide the objectives, the
probability of the individual meeting the goal is much higher. This is a fair method of evaluating
because the employee knows the odds that he is measured against. It doesnt involve giving
constant feedback to the employee, because he is being constantly self introspective, thereby
saving time and efforts of the employer.
Paired Comparison Method
This method bears more relevance and importance in startups/SMBs, which have small teams. It
compares each employee with every individual present in the same team and depending on their
comparative performance to the employee who has performed the best, appraisals are given. It is
considered reliable because it follows a systematic method of comparative evaluation. This
technique is most apt when, the organisation plans on giving appraisal only to the best employee
in the team.
Rating Scale
This performance appraisal method can be used by startups and small businesses that are scaling
and are trying to set up processes in place. It is process-based and involves the organisation to set
pre-determined objectives that employees are expected to meet. Individuals are then rated by
their supervisors or managers. It is similar to the grading system that is usually followed in
schools, but is effective and systematic. Employees are evaluated for their skills, teamwork,
communication skills, precision, etc. And they are expected to meet a basic score. If they do not
meet the score then they are sent for performance improvement training which would help them
cope up with their shortcomings.
Trait Focussed Appraisals

This technique is useful for reinforcing positive work ethics and culture in the organisation. It
considers attributes like helpfulness, dependability, punctuality, etc for being appraised by the
organisation. It motivates employees to be competitive in a fair manner and yet be available for
helping out colleagues if need be. Startups should consider giving their employees trait focussed
appraisals once in a while, because it reinforces positive culture in the organisation.
360 Degree Feedback
This method involves getting a feedback about the employee from every individual who interacts
with him during his working hours. They can be his peers, his subordinates, his superiors,
customers who have interacted with him and even he himself would be interviewed about his
perception of himself and his duties at the workplace. This performance appraisal method would
be very useful for startups, because the best way to review an employees overall performance
and get an insight about his behaviour, personality and attitude this is the best method to follow.
Although it is a little time consuming, but it is cost effective and precise. It keeps biases out of
play due to multiple opinions, so that the review isnt affected by biases of one person.
Appraisals are the means to an employees career development. Therefore, effective performance
appraisal methods not only help the employee grow, but also the organisation. If the employee is
given feedback regularly and frequently, the organisation will be at the receiving end of the profit
too. Performance reviews are important because they help identify and set goals for the
employee, recognize performance over time, guide progress, identify the problem areas or
weaknesses, improve performance and discuss career development in the company. Companies
should give promotions and appraisals frequently because it keeps the employees motivated to
perform better, thereby maximizing the efficiency of the employee, and the productivity of the
company.
==================

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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