Techniques of performance appraisal

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I. Contents of getting techniques of performance appraisal

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The techniques of appraisal have been divided into two categories: The modern and the
traditional techniques. While the traditional methods base their findings on the personality trades
of an individual like creativity, responsibility, and leadership, the modern techniques laid more
stress on the evaluation of work results. The traditional methods or techniques are:
1. Confidential report: It is used for promotion and transfer of an employee and is prepared by
the immediate superior who describes in detail the strength and weaknesses along with major
achievements and failures of the employee. The personality and behavior of the employee also
find mention in this report.
2. Essay or free form method: As the name suggests the appraiser write a short essay detailing
the performance of the employee. It is a very time consuming method and is prone to buys also
as specific performance dimensions are not considered. The quality of appraisal also depends on
the writing skills of the appraiser. It is also difficult to compare two Essay appraisals as there is
no common criterion for the appraiser.
3. Strayed ranking method: This is the old and simplest method of performance appraisal. In this
method ranks are assigned relatively to all the employees working in the same unit and doing the
same job without analyzing their performance. The method biased as the ranking is not based on
the specific performance measures of a job. It can be cumbersome if the number of employees is
very large. The other limitations of this method are that it only tells how an employee stands in
comparison with other employees.

4. Forced distribution method: In this method the evaluator is required to distribute his rating in
the form of normal frequency distribution. Employees are shown in categories that range from
poor to excellent by the evaluator. This method was evolved by Joseph Tiffin but it also suffers
from certain limitations as the performance criteria related to a job are not used and the reasons
for assigning a category to particular employee are not clear.
5. Graphic or linear rating scale: In this method a numerical scale is used which indicates
different degrees to a particular trait. These traits can be initiative dependability creativity
attitude loyalty emotional stability and co-ordination. The evaluator gives a particular ranking on
each trait to every employee. Two types of rating scales are used: Continuous and discontinues.
In first type degree of a trait is measure along a continuum like 0 1 2 3. IN discontinues rating
scale boxes are used to show the different degrees of the traits like (I) no interest (II) indifferent
(III) Interesting (IV) enthusiastic (V) very enthusiastic.
6. Critical incident method: This method was developed after a research by the armed forces of
United States of the 2nd world war. It is based on a principal that there are some significant acts
in the behavior and performance of every employee which can lead to the success of failure on
the job. The supervisor keeps a record of these events which can be good or bad and also records
the behavior of the employee during such an event. The ratings of the employee depend on the
positive or negative behavior during these events. This method also has certain limitations like it
is cumbersome and time consuming and a lot of important information is lost while coating the
incident after a considerable gap of time. Continues record keeping is also not possible as such
events keep on happening frequently. The bios by the supervisor in reporting these incidents can
also not be ruled out completely.
7. Group appraisal method: Employees are rated by a group of people comprising the immediate
supervisor of the employee and other supervisor who have the knowledge of the employee work
along with the concerned head of the department and a personnel expert. This group determines
the standards and then measures the actual performance of the employee. It suggests creative
measures after analyzing the causes of poor performance. Though it is a time consuming method,
it is free from bias.
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III. Performance appraisal methods

1. 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.

2. 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.

3. 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 Raters biases

4. 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

5.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
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
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.
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.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. Critical Incidents Method

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.

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