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Types of performance appraisal
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I. Contents of getting types of performance appraisal
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A performance appraisal, or performance review, is a formal interaction between an employee
and her manager. This is when the performance of the employee is assessed and discussed in
thorough detail, with the manager communicating the weaknesses and strengths observed in the
employee and also identifying opportunities for the employee to develop professionally. In most
instances, a performance appraisal is completed quarterly or annually.
360-Degree Feedback
A common performance appraisal method is the 360-degree feedback. In this scenario, whoever
conducts the appraisal, such as a human resources manager, interviews an employee’s
supervisor, peers and any direct reports. This technique allows an appraiser to gain a complete
profile of the employee. In addition to gauging the worker’s job performance and technical skill
set, an appraiser receives in-depth feedback on the employee's behavior. Measuring areas
of subjectivity, such as character and leadership skills, allows an employer to manage an
employee’s development.
Management By Objectives
Management by objectives (MBO) is another modern method of performance appraisal. This
technique was first promoted in the 1950s by management theorist Peter Drucker. MBO requires
a manager and employee to agree upon specific, obtainable objectives with a set deadline. For
example, a sales manager may be required to increase his revenue by 25 percent within three
months. Once this goal is set, the responsibility is on the sales manager to direct himself towards
the objective. With this technique, success or failure is easily defined.

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Ratings Scale
An alternate type of performance appraisal is the ratings scale. This methodology requires an
employer to develop an in-depth grading system, similar to the way students in school are
assessed. This scale is then used to evaluate an employee’s success within a variety
of areas, such as technical skill set, teamwork and communication skills. There is typically a
minimum required grade an employee must receive in order for the performance appraisal to be
considered a success. Those that do not make the grade are often put on a performance
improvement plan. This method is viewed by some management theorists as an egalitarian way
of measuring individual performance.
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III. Performance appraisal methods
1.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
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. 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.
ii. 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.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate

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the possibility of snap judgements.
2. 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 – Rater’s biases
3. 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
4. Critical Incidents Method

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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.
5. 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.
6. 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.

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