Performance Appraisal Methods

Methods Meaning Advantages Disadvantages

TRAIT METHODS These are designed - It is easy to - It can be
to measure the develop. notoriously biased
extent to which an - Use meaningful and subjective.
employee possesses dimensions - High potential of
certain - Are easy to use rating errors
characteristics that
are vied as
important for the
job and the
organization in
general
Graphic Rating A trait approach to - Adaptability - Rater’s biases
Scale Method performance - Easy to use
appraisal whereby - Low cost
each employee is - Large number of
rated according to a employees covered
scale of - No formal training
characteristics. required
Mixed-Standard It is a modification - The statements - Time-consuming
Scale Method of the basic rating are randomly mixed
scale model tending to reduce
wherein the rater is rate errors by
given three specific making it less
descriptions of each obvious.
trait – superior,
average and
inferior.
Force-Choice It requires the rater - Absence of - The cost of
Method to choose from personal biases establishment is
statements, often in because of forced high and it is
pairs, that appear choice. difficult to maintain
equally favorable or its validity.
equally unfavorable. - It cannot be used
as effective as
others.
- Statements may
be wrongly framed.
Essay Method It requires the - It provides - It is very time-
appraiser to additional consuming.
 comprise a descriptive - The quality of
statement that best information about performance
describes the an employee’s appraisal could be
employee being performance. affected by the
appraised. - Helps the supervisor’s writing
supervisors to point skills and
out the employee’s composition style.
unique - It tends to be
characteristics. subjective and
might not focus on
the relevant aspects
of a person’s job
performance.
BEHAVIORAL These have been - Use specific - Can be time-
METHODS developed to performance consuming
specifically describe dimensions - Can be costly to
which actions - Are useful in develop
should or should providing feedback - Have some
not be exhibited on potential in rating
the job. They are error
often used to
provide employees
with developmental
feedback.
Critical Incident It occurs wen - Evaluations are - Negative incidents
Method employee behavior based on actual job can be prioritized
results in unusual behaviors. - Feedback may be
success or unusual - It also helps a too much and may
failure in some part manager counsel appear to be
of the job. employees when punishment
they are having
performance
problems while the
problem is still
minor.
- It also increases
the objectivity of
the appraisal.
Behavioral It is one of the - Ease of - Rater’s biases
Checklist Method oldest appraisal administration - Use of improper
techniques. It - Limited training weighs by HR
consists of having required - Does not allow
the rater check the - Standardization rater to give relative
statements on a list ratings
 that the rater
believes are
characteristic of the
employee’s
performance or
behavior.
Behaviorally It consists of a - It can yield more - It requires
Anchored Rating series of five to ten accurate ratings. considerable time
Scale (BARS) vertical scales – one - Personnel outside and effort to
for each important the HR department develop.
dimension of can participate wit - A scale designed
performance HR staff in its for one job might
identified through development. not apply to
job analysis. - It has a high another.
degree of content
validity.
Behavior It is designed to - Less subjective - A supervisor
Observation Scale measure how judgment cannot always be
(BOS) frequently each of - Job relevant and observing the
the behaviors has legally defensible worker he/she is
been observed. - Very useful for rating,
feedback purposes - Affected by error
and bias
RESULTS METHOD Many organizations - Have less - Time-consuming
evaluate subjectivity bias - May use deficient
employees’ - Encourage mutual criteria
accomplishments – goal setting -May use
the results they - Are good reward contaminated
achieve through and promotion criteria
their work. decisions
Productivity Sales persons are - Results appraisals - Can be
Measures evaluated on the can directly align contaminated by
basis of their sales employee and external factors that
volume. Production organizational employees cannot
workers are goals. influence.
evaluated on the - Can encourage
basis od number of employees to “look
units they produce. good” on a short-
Executives are term basis, while
frequently ignoring long-term
evaluated on the ramifications.
basis of company
profits and growth
rate.
Management by Managers or It is more useful for - Not applicable to
Objectives employers set a list managerial all jobs
of objectives and positions. - Allocation of merit
make assessments pay may result in
on their setting short-term
performance on a goals rather than
regular basis and long-term goals
finally make
rewards based on
the results
achieved.