Define performance appraisal.

What are its objectives discuss different methods of

appraisal and their merits and demerits.( very detailed answer given v.imp q
appeared many times? Preview not available.

Ans . Concept of appraisal

Appraisal is the evaluation of worth, quaky, or merit. Appraisal should measure both
performance in accomplishing goals and plans and performance as a manager. A
generation ago, appraisal programmes tended to emphasise employee's traits, deficiencies
and abilities, but mod-ern philosophy emphasises present performance and future goals.
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The performance appraisal should be systematic. The appraisal is systematic when it

evaluates all performances in the same manner, utilising the same approach, so that the
ratings obtained of separate personnel are comparable. Such appraisals are undertaken
periodically according to plan ; they are not casual or left to chance. Preview not
available.

The essential feature of systematic appraisal is the accurate measurement of performance

because it attempts to reduce, if not altogether eliminate, human bias and prejudices by
means of a system, particularly a system that is subject to impartial review and check. A
performance appraisal may serve the following objectives in the organisation. Preview
not available.

Systematic performance appraisal provides information of great assistance in making and

enforcing decisions about such subjects as pro-motions, pay increases, lay-offs, and
transfers. Preview not available.

A research study has disclosed that performance appraisal is used for promotion in 73 per
cent cases, salary adjustment 69 per cent, stimulating employee improvement 61 per
cent, deciding upon discharge 46 per cent and determining lay-off 27 per cent.'
performance appraisal provides information in advance of time when it may be needed,
thereby avoiding spot judgments when a decision must be made. Moreover, the

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systematic approach provides the information in a form that permits the making of
comparisons. Preview not available.

Trait approach

The trait approach, the first to develop in management history, led to the development of
several kinds of ranking systems and graphic rating scales. Scale became quite
widespread in the 1920's and late 1930's. There are several methods of appraisal under
trait approach : Preview not available.

Man-to-man comparison. This system was used first by us army during war world 1. In
this method, certain personality factors such as leadership, initiative, dependability, and
so on, are selected for purposes of analysis. A scale is developed for each factor. Instead
of comparing a man to another, personnel are compared to key men, one factor at a time.
Thus, a scale of men is created for each selected factor. Preview not available.

This system of measurement is utilised today in job evaluation being known as the `factor
comparison' system. Though, it is highly useful in measuring job, it has very limited use
in measuring people. Preview not available.

Grading. - in the grading system, certain categories of worth are establisned in advance.
These are carefully defined, and personnel are placed in a particular group depending
upon their worth. Tor example, the grades may he defined as outstanding, satisfactory,
and unsatisfactory. Preview not available.
Sometimes, grading system is modified into a forced distribution system in which certain
percentages are fixed for each grade. The basic idea behind this is to put limit for
generalisation on the part Preview not available.

Only one of the statements in each pair is correct in identifying the better performance,
and this scoring key must be kept secret from the rater. In this manner, bias is removed
from the appraisal process. In a research study, it was found that the use of forced-choice
scale effectively eliminated the leniency error while the use of a graphic scale format
enabled bias to be introduced.6 there are certain disadvantages of the forced-choice
scaling, and because of these disadvantages, its use is not widespread. Preview not
available.
Cozan' feels that this method appears to have greater objectivity, four basic requirements
are hard to meet : trained technicians to develop the scales, a different collection of items
for each job group, a fair agreement on the criteria for success and failure and acceptance

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by supervisors who must rate their subordinates without knowing the relative rating they
are giving. Preview not available.

Besides the above methods of appraisal, some other methods are also used, such as
checklist method, selection of critical incident method, and descriptive, method. All these
methods are used as supplementary to above-mentioned methods. Preview not
available.