Methods Of Performance Appraisal

MODERN
MODERNMETHODS
METHODSOF
OFPERFORMANCE
PERFORMANCEAPPRAISAL
APPRAISAL
Assessment
AssessmentCentre
CentreMethod
Method
Human
HumanResource
ResourceAccounting
AccountingMethod
Method
Behaviourally
BehaviourallyAnchored
AnchoredRating
Rating
Appraisal
Appraisalthrough
throughManagement
Managementby
byObjectives
Objectives(MBO):
(MBO):
The
The360
360Degree
DegreeAppraisal
Appraisal

1. Assessment Centre Method:

This method was used for the first time in 1930 by the German army
and then in 1960s by the British army. The performance of an employee
an also his potential for a new job is evaluated in this method by assessing
his performance on job related simulations.Techniques like business games
role playing are used in this method.

2. Human Resource Accounting Method

Human resources are a valuable asset for any organization and it can
be valued in monetary terms. This method evaluates the performance of an
employee in terms of costs and contributions. For e.g..
RAN
K

RATING

CONTRIBUTION TO COST OF
EMPLOYEE % OF SURPLUS/DEFICIT

Extremely good
performance

Over 200

Good Performance

150-200

Slightly Good
Performance

100-150

Neither Poor nor

good

Slightly Poor
Performance

0-100
0

3. Behaviorally anchored rating scale

This method combines the graphic rating scale and the critical incident
method. It determines in advance the critical areas of the performance and
the most effective behaviour to achieve the results.

4. Appraisal through management by objectives (MBO):

This concept was introduced by Peter Drucker in 1954 who named it
management by objectives and self control. It is an effective way it is also
known as goal setting approach to appraisal These measures are use for
operating the unit as well as for appraising the performance of the
employees.

MBO PROCESS

5. The 360 degree appraisal

The 360 degree method of performance appraisal is used to make the
appraisal process more transparent, objective and participative. It is called
a 360 degree method because it involves the evaluation of an employee by
persons above him, below him and alongside him.The following four are

the main components of 360 degree appraisal.

Self appraisal
Appraisal by superiors
Appraisal by subordinates
Potential appraisal

STRATEGIES FOR IMPROVING EMPLOYEES

PERPORMANCE
1. Communicate clear goals and expectations
from the employees.

2. Share information.

3. Encourage Innovation

4. Sense of belonging.

5. Encourage open communication.

6. Share Problem Solving

7. Delegation.

8. Incentives.

THANK
THANK YOU
YOU