Presentation on Performance Appraisal Methods

D Upasani Roll No-1046

By Mayur Div-A

What Is Performance Appraisal?

Performance Appraisal refers to all those procedures that are used to evaluate the

Personality

Performance Potential of its group members.

Objectives of Performance Appraisal

Provides basis for promotion/transfer/termination Identify those employees who deserve promotion Or those who require transfer or termination

Methods of Performance Appraisal

Numerous methods have been devised to measure the quality and quantity of employees job performance. Each of the methods discussed could be effective for some purposes. Broadly, these methods are classified into Traditional Methods Modern Methods

Traditional Methods
Straight Ranking Method:-

The evaluator rates the employee from highest to lowest on some overall criteria

Paired Comparison Method: Each employee is compared with all other employees in a group For several traits paired comparisons are made. For Example Leadership

Dependability

 Critical Incident Method: A method in which the manager writes down positive and negative performance behavior of employees throughout the performance period. Weighted Checklist Method:

A checklist is a set of objectives or descriptive statements about the employee and his

 Graphic Rating Method: A form is used to evaluate the Performance of the employees. A variety of traits may be used in this device, the most common being the quality and quantity of work. Forced Choice Description Method: This method uses several sets of paired phases, two of which may be positive or negative. A rater is asked to indicate which of the four phases most and least descriptive of the employee.

 Forced Distribution Method: Two Criteria used for rating are:o Job Performance o Promotability A worker is placed between two extremes of good and bad performance. Group Appraisal Method: Employee is appraised by a group of appraisers. The group discusses the standards of performance and actual performance of the workers.

 Free from Essay Method: A Detailed report is prepared about the performance and general behaviour of employees. following factors are considered while preparing a report. o Relations with subordinates o Managerial Ability o Job Knowledge, Skills and potential. Field Review Method: The Appraiser goes on the field and obtains the information about work

Modern Methods
Assessment Centre:

It involves a Paper and pencil test, interviews and situational exercises.

Useful to measure Interpersonal Skills and Managerial Skills of Employees.

 Management By Objectives Method: MBO emphasizes collectively set goals that are tangible, verifiable and measurable.

Concentrates on Key Result Areas (KRA). More Attention is given towards responsibility, accountability and achievement of

 360 Appraisal Method: is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.

Measures Behaviors and Competencies. Focuses on subjective areas such as team work, character and leadership effectiveness.

 Human Asset Accounting Method:-

Gives more importance to the Human Capital in terms of money.

Takes into consideration the replacement cost of people and the role an organization plays in investing in people.

Takes into consideration the Value and Role people play