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TECHNIQUES/METHODSOFPERFORMANCEAPPRAISALS
Numerousmethodshavebeendevisedtomeasurethequantityandqualityofperformanceappraisals.Each
ofthemethodsiseffectiveforsomepurposesforsomeorganizationsonly.Noneshouldbedismissedor
acceptedasappropriateexceptastheyrelatetotheparticularneedsoftheorganizationoranemployee.
Broadlyallmethodsofappraisalscanbedividedintotwodifferentcategories.
PastOrientedMethods
FutureOrientedMethods
PastOrientedMethods
1.RatingScales:Ratingscalesconsistsofseveralnumericalscalesrepresentingjobrelatedperformance
criterionssuchasdependability,initiative,output,attendance,attitudeetc.Eachscalesrangesfromexcellent
topoor.Thetotalnumericalscoresarecomputedandfinalconclusionsarederived.AdvantagesAdaptability,
easytouse,lowcost,everytypeofjobcanbeevaluated,largenumberofemployeescovered,noformal
trainingrequired.DisadvantagesRatersbiases
2.Checklist:Underthismethod,checklistofstatementsoftraitsofemployeeintheformofYesorNo
basedquestionsisprepared.HeretherateronlydoesthereportingorcheckingandHRdepartmentdoesthe
actualevaluation.Advantageseconomy,easeofadministration,limitedtrainingrequired,standardization.
DisadvantagesRatersbiases,useofimproperweighsbyHR,doesnotallowratertogiverelativeratings
3.ForcedChoiceMethod:Theseriesofstatementsarrangedintheblocksoftwoormorearegivenand
theraterindicateswhichstatementistrueorfalse.Theraterisforcedtomakeachoice.HRdepartmentdoes
actualassessment.AdvantagesAbsenceofpersonalbiasesbecauseofforcedchoice.Disadvantages
Statementsmaybewronglyframed.
4.ForcedDistributionMethod:hereemployeesareclusteredaroundahighpointonaratingscale.Rater
iscompelledtodistributetheemployeesonallpointsonthescale.Itisassumedthattheperformanceis
conformedtonormaldistribution.AdvantagesEliminatesDisadvantagesAssumptionofnormal
distribution,unrealistic,errorsofcentraltendency.
5.CriticalIncidentsMethod:Theapproachisfocusedoncertaincriticalbehaviorsofemployeethat
makesallthedifferenceintheperformance.Supervisorsasandwhentheyoccurrecordsuchincidents.
AdvantagesEvaluationsarebasedonactualjobbehaviors,ratingsaresupportedbydescriptions,feedbackis
easy,reducesrecencybiases,chancesofsubordinateimprovementarehigh.DisadvantagesNegative
incidentscanbeprioritized,forgettingincidents,overlyclosesupervisionfeedbackmaybetoomuchandmay
appeartobepunishment.
6.BehaviorallyAnchoredRatingScales:statementsofeffectiveandineffectivebehaviorsdetermine
thepoints.Theyaresaidtobebehaviorallyanchored.Theraterissupposedtosay,whichbehaviordescribes
theemployeeperformance.Advantageshelpsovercomeratingerrors.DisadvantagesSuffersfrom
distortionsinherentinmostratingtechniques.
7.FieldReviewMethod:Thisisanappraisaldonebysomeoneoutsideemployeesowndepartment
usuallyfromcorporateorHRdepartment.AdvantagesUsefulformanageriallevelpromotions,when
comparableinformationisneeded,DisadvantagesOutsiderisgenerallynotfamiliarwithemployeeswork
environment,Observationofactualbehaviorsnotpossible.
8.PerformanceTests&Observations:Thisisbasedonthetestofknowledgeorskills.Thetestsmaybe
writtenoranactualpresentationofskills.Testsmustbereliableandvalidatedtobeuseful.AdvantageTests
maybeapttomeasurepotentialmorethanactualperformance.DisadvantagesTestsmaysufferifcostsof
testdevelopmentoradministrationarehigh.
9.ConfidentialRecords:Mostlyusedbygovernmentdepartments,howeveritsapplicationinindustryis
notruledout.HerethereportisgivenintheformofAnnualConfidentialityReport(ACR)andmayrecord
ratingswithrespecttofollowingitemsattendance,selfexpression,teamwork,leadership,initiative,
technicalability,reasoningability,originalityandresourcefulnessetc.Thesystemishighlysecretiveand
confidential.Feedbacktotheassesseeisgivenonlyincaseofanadverseentry.Disadvantageisthatitis
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highlysubjectiveandratingscanbemanipulatedbecausetheevaluationsarelinkedtoHRactionslike
promotionsetc.
10.EssayMethod:Inthismethodtheraterwritesdowntheemployeedescriptionindetailwithinanumber
ofbroadcategorieslike,overallimpressionofperformance,promoteabilityofemployee,existingcapabilities
andqualificationsofperformingjobs,strengthsandweaknessesandtrainingneedsoftheemployee.
AdvantageItisextremelyusefulinfilinginformationgapsabouttheemployeesthatoftenoccurinabetter
structuredchecklist.DisadvantagesItitshighlydependentuponthewritingskillsofraterandmostofthem
arenotgoodwriters.Theymaygetconfusedsuccessdependsonthememorypowerofraters.
11.CostAccountingMethod:Hereperformanceisevaluatedfromthemonetaryreturnsyieldstohisor
herorganization.Costtokeepemployee,andbenefittheorganizationderivesisascertained.Henceitismore
dependentuponcostandbenefitanalysis.
12.ComparativeEvaluationMethod(Ranking&PairedComparisons):Thesearecollectionof
differentmethodsthatcompareperformancewiththatofothercoworkers.Theusualtechniquesusedmay
berankingmethodsandpairedcomparisonmethod.
RankingMethods:Superiorrankshisworkerbasedonmerit,frombesttoworst.Howeverhowbest
andwhybestarenotelaboratedinthismethod.Itiseasytoadministerandexplanation.
PairedComparisonMethods:Inthismethodeachemployeeisratedwithanotheremployeeinthe
formofpairs.Thenumberofcomparisonsmaybecalculatedwiththehelpofaformulaasunder.
Nx(N1)/2
FutureOrientedMethods
1.ManagementByObjectives:Itmeansmanagementbyobjectivesandtheperformanceisrated
againsttheachievementofobjectivesstatedbythemanagement.MBOprocessgoesasunder.
Establishgoalsanddesiredoutcomesforeachsubordinate
Settingperformancestandards
Comparisonofactualgoalswithgoalsattainedbytheemployee
Establishnewgoalsandnewstrategiesforgoalsnotachievedinpreviousyear.
AdvantageItismoreusefulformanagerialpositions.
DisadvantagesNotapplicabletoalljobs,allocationofmeritpaymayresultinsettingshorttermgoalsrather
thanimportantandlongtermgoalsetc.
2.PsychologicalAppraisals:Theseappraisalsaremoredirectedtoassessemployeespotentialforfuture
performanceratherthanthepastone.Itisdoneintheformofindepthinterviews,psychologicaltests,and
discussionwithsupervisorsandreviewofotherevaluations.Itismorefocusedonemployeesemotional,
intellectual,andmotivationalandotherpersonalcharacteristicsaffectinghisperformance.Thisapproachis
slowandcostlyandmaybeusefulforbrightyoungmemberswhomayhaveconsiderablepotential.However
qualityoftheseappraisalslargelydependupontheskillsofpsychologistswhoperformtheevaluation.
3.AssessmentCenters:ThistechniquewasfirstdevelopedinUSAandUKin1943.Anassessment
centerisacentrallocationwheremanagersmaycometogethertohavetheirparticipationinjobrelated
exercisesevaluatedbytrainedobservers.Itismorefocusedonobservationofbehaviorsacrossaseriesof
selectexercisesorworksamples.Assesseesarerequestedtoparticipateininbasketexercises,workgroups,
computersimulations,roleplayingandothersimilaractivitieswhichrequiresameattributesforsuccessful
performanceinactualjob.Thecharacteristicsassessedinassessmentcentercanbeassertiveness,persuasive
ability,communicatingability,planningandorganizationalability,selfconfidence,resistancetostress,energy
level,decisionmaking,sensitivitytofeelings,administrativeability,creativityandmentalalertnessetc.
DisadvantagesCostsofemployeestravelingandlodging,psychologists,ratingsstronglyinfluencedby
assesseesinterpersonalskills.Solidperformersmayfeelsuffocatedinsimulatedsituations.Thosewhoare
notselectedforthisalsomaygetaffected.
Advantageswellconductedassessmentcentercanachievebetterforecastsoffutureperformanceand
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progressthanothermethodsofappraisals.Alsoreliability,contentvalidityandpredictiveabilityaresaidtobe
highinassessmentcenters.Thetestsalsomakesurethatthewrongpeoplearenothiredorpromoted.
Finallyitclearlydefinesthecriteriaforselectionandpromotion.
4.360DegreeFeedback:Itisatechniquewhichissystematiccollectionofperformancedataonan
individualgroup,derivedfromanumberofstakeholderslikeimmediatesupervisors,teammembers,
customers,peersandself.Infactanyonewhohasusefulinformationonhowanemployeedoesajobmaybe
oneoftheappraisers.Thistechniqueishighlyusefulintermsofbroaderperspective,greaterself
developmentandmultisourcefeedbackisuseful.360degreeappraisalsareusefultomeasureinterpersonal
skills,customersatisfactionandteambuildingskills.Howeveronthenegativeside,receivingfeedbackfrom
multiplesourcescanbeintimidating,threateningetc.Multipleratersmaybelessadeptatprovidingbalanced
andobjectivefeedback.

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