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Performance appraisal:

Performance appraisal implies systematic evaluation of employees with respect to their performance on the job and their potential development. In other words it is a systematic examination of an employees strengths and weakness in terms of the job

Traditional & modern methods of performance appraisal: Generally performance appraisal can give to employees on two bases. i. ii. Appraisal employees according to taints, attributes and general behavior on the job is known as trait approach. Appraisal of employees according to work and goals achieved by the employees. Is known as appraisal by results. Performance appraisal

TRADITIONAL METHODS a. Straight ranking method b. Paired comparison method Grading method d. Forced distribution method e. Forced choice method f. Check lists method g. Graphic scale method h. Essay method

MODREN METHODS a. Management by objectives b. Human Asset Accounting method c. Behaviorally Anchored rating scales


Traditional Methods:
a).Ranking method: Ranking is the oldest and simplest method of appraisal in which a person is ranked against others on the basis of certain traits and characteristics. This is just like preparing ranks of various examinees in an examination. In the ranking method, various persons are given ranks on the basis of their traits. This is a very simple method when the number of persons to be ranked is small because ranking has to be given on the basis of traits which are not easily determinable, not like marks in an examination b).Paired comparison method: Paired comparison method is a slight variation of ranking system designed to increase its value for use in the large groups. In this method, each person is compared with other persons taking only one at a time. This method provides better comparison of persons. How ever, this increases the work because of large number of comparisons. For example, to rank 50 persons through paired comparison, there will be 1,225 comparisons. This can be calculated by a formula N (N-1)/2 where N is the total number persons to be compared. c).Grading method: In this method, certain categories of abilities or performances are defined well in advance and persons are put in the particular category depending on their traits and characteristics. Such categories may be definitional like outstanding, good, average, poor, very poor, or may be in terms of letters like A, B, C, D etc. with A indicating the best and D indicating the worst. This method is generally useful for promotion based on performance. d).Forced distribution method: This basis assumption in this method is that employees performance level conforms to a normal statistical distribution. For example, 10% employees may be rated as excellent. 20% as above average, 40% as average, 20% below average, And 10% as poor. Like this the force can be distributed and rate their job performance. And give the performance appraisal to employees.

e). Forced- choice method: The forced choice rating method contains a series of group of statements. The rater checks how effectively the statement describes each individual being evaluated. The most common method of forced choice contains two statements both of which may be +ve or ve. Through both of them describe the characteristics of an employee. The statements are like... a) Is punctual and careful. b) Is a hard worker and co-operative. c) Is dishonest and disloyal. Based on these favorable and unfavorable terms the performance can be measuring for the employees. f).Check-lists method: In the check l-list method of appraisal, the rater provides appraisal report by answering a series of questions related to the appraisee. These questions are prepared by personal department and are related to the behavior of the appraisee concerned. Each question has two alternatives, yes or no, as given below. a) Is he/she interested in the job? Yes/No b) Is he/she regular on the job? Yes/No c) Does he/she show uniform behavior to all? Yes/No d) Is he/she willing to help other employees? Yes/No e) Does he/she maintain discipline well? Yes/No These are some of the examples of the questions. An organization may prepare a series of questions relevant to various categories of its personnel. The rater concerned has to tick appropriate answers relevant to the appraisees. When check-list is completed, it is sent to personal department for further processing. g).Graphic scale method: Graphic scale also known as linear rating scale is the most commonly used method of performance appraisal. In this method, a printed appraisal form is used for each appraise. The form contains various employee characteristics and his job performance. Various characteristics include initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability, etc, the rating is done on the basis of scale which is in continuum.

h).Essay Method:

In the essay method, the rater assesses the employees with certain parameters in his own words. Such parameters may be as follows: a) Work performance in terms of quality, quantity and costs; b) Knowledge about the job; The employee performance appraisal can be depend the answering of these type of parameters.

Modern methods:
a).Appraisal by results or management by objectives (MBO): This method has been evolved by Peter Drucker. MBO is potentially a powerful philosophy of managing and an effective way for operationalising the evaluation process. It seeks to minimize external controls and maximize internal motivation through joint goal setting between the manager and the subordinate and increasing the subordinates own control of his work. It strongly reinforces the importance of allowing the subordinate to participate actively in the decisions that affect him directly. b. Human Asset accounting method: The human asset accounting method refers to activity devoted to attaching money estimates to the value of a firms internal human organization and its external customer goodwill. If able, well-trained personnel leave a firm, the human organization is worthless, if they join it, its human assets are increased. If distrust and conflict prevail, the human enterprise is devalued. If team work and high morale prevail, the human organization is a very valuable asset. c. Behaviorally Anchored rating scales: This is a new appraisal technique which has recently been developed. Its supporter claims that it provides better, more equitable appraisals as compared to other techniques.

References: Personnel Management: C.B. MAMORIA, S.V. GANKAR