methods of performance appraisals are discussed here with relation to Human Resource Management

2. PERFORMANCE APPRAISAL
 It is a formal structured system of measuring ,
evaluating job related behaviors and outcomes to
discover reasons of performance and how to
perform effectively in future so that employee ,
organization and society are benefited.
 It is a systematic evaluation of an individual with
respect to performance on the job and individual’s
potential for development.

3. PERFORMANCE APPRAISAL METHODS
Performance
Appraisal
Methods
Past Oriented
Methods
Future
Oriented
Methods

4. PAST ORIENTED METHODS
Rating scale method
Checklist method
Forced choice method
Forced distribution method
Critical incident method
BARS
Field review method
Confidential report
Essay method
Cost accounting method
Comparative evaluation approaches

5. FUTURE ORIENTED METHODS
Management by Objective
Psychological approach
Assessment center
360 degree feedback

6. RATING SCALE METHOD
 Simplest and most popular technique.
 A typical rating system consists of several numerical
scale each representing a job related performance
criterion such as output, attendance, attitude..
 Scale ranges from excellent to poor.
• Low cost and easy to use.
• Rater does not need any training to
use the scale.
Advantage
• Rater’s biases are likely to influence
the evaluation.Disadvantage

7. RATING SCALE

8. CHECKLIST
 Under this method, a checklist of statement on the
traits of employee and his job is prepared in two
columns i.e.,
 Yes column
 No column

9. FORCED CHOICE METHOD
 Rater is given series of statement , arranged in blocks
of two or more.
 The rater indicates which statement is most or least
descriptive of the employee.
Advantage
Absence of
personal bias.
Disadvantage
Statements may
not be properly
framed.

10. FORCED CHOICE PERFORMANCE
EVALUATION FORM

11. FORCED DISTRIBUTION METHOD
 This method operates under assumption that
employee performance level conforms to normal
statistical distribution.
 It is assumed that employee performance level
conform to bell shaped curve.

12. CRITICAL INCIDENT METHOD
 It is focused on certain critical behaviors of
employee that makes all the difference in the
performance.
 Superiors record the incidents as and when
they occur.
Advantage
• Evaluations are based on actual job
performance
• Ratings are supported by description
Disadvantage
• Overly close supervision.
• Too much of feedback.

13. Ex: A Fire, sudden breakdown, accident
Workers Reaction Scale
A
B
C
D
E
Informed supervisor immediately
Became anxious on loss of output
Tried to repair the machine
Complained for poor maintenance
Was happy to forced test
5
4
3
2
1
CRITICAL INCIDENT METHOD

14. BEHAVIOURALLY ANCHORED
RATING SCALE (BARS)
 This rating scale determines effective and
ineffective behaviour of the employees.
 The rater must indicate which behaviour
describe employee performance.
 BARS provide results which subordinates
could use to improve performance.

15. BARS

16. CONFIDENTIAL REPORT
 It is a descriptive report.
 Prepared at the end of the year.
 Maintained mostly in government departments.
 Does not offer any feedback to employees.

17. ESSAY METHOD
The rater writes a narrative description on
employees strength, weakness, performance ,
potential and suggestions for improvement.
 It evaluates performance from the monetary returns
the employee yields to his/her organization.
 Performance of employee is evaluated based on
relationship between cost and benefit.
COST ACCOUNTING METHOD

18. COMPARATIVE
EVALUATION
APPROACHES
Ranking Method
Superiors ranks the
subordinate in order of
merit, starting from best
to worst.
Paired Comparison
Method
Each employee is
compared with every
other employee, at one
time
COMPARATIVE EVALUATION
APPROACHES
 The comparative evaluation approach compare one
worker’s performance with co worker.

19. FUTURE ORIENTED METHODS
Management by Objective:
 The performance is rated against the achievement of
objectives stated by the management. It goes on as-
 Establish goals and desired outputs for each
subordinate.
 Setting performance standard.
 Comparison of actual goals with standard set.
 Establish new goals and new strategies for goals not
achieved in previous year.

20. PSYCHOLOGICAL APPRAISALS
 These appraisals are more directed to assess
employees potential for future than the past
performance.
 It is done in the form of in-dept interviews,
psychological tests , discussions with superiors and
review of other evaluations.
 It is more focused on employees emotional,
intellectual, motivational and other personal
characteristics affecting his performance.
 The quality of these appraisals depends upon the
skills of psychologists who perform the evaluation.

21. ASSESSMENT CENTERS
 It is the central location where managers may come
together to have their participation in job related
exercises evaluated by trained observers.
 It is more focused on observation of bahaviours
across a series of selected exercises.
 Assesses are requested to participate in in-basket
exercises, work groups and other similar activities
which require same attributes for successful
performance in actual job.

22. 360-Degree Feedback
 It is the technique which is the systematic collection
of performance data on an individual or group,
derived from a number of stakeholders like
immediate supervisors, team members, customers,
peers and self.
 It is useful to measure inter-personal skills, customer
satisfaction and team building skills.
 At the same time receiving feedback from multiple
sources can
be threatening.

23. Conclusion
Provides a review of past performance.
Establishes lines of communication.
Better understanding of goals and requirements.
Reflection on areas of weakness and strengths.
Indication for salary increment.
Focus on developing individual performance.
Identify action plan for future development.