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Performance Appraisal

Performance Appraisal

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Published by Nikhil Chowdary

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Published by: Nikhil Chowdary on Jun 17, 2012
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06/17/2012

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Following are the tools used by the organizations for Performance Appraisals of their employees.1.
 
Ranking2.
 
Paired Comparison3.
 
Forced Distribution4.
 
Confidential Report5.
 
Essay Evaluation6.
 
Critical Incident7.
 
Checklists8.
 
Graphic Rating Scale9.
 
BARS10.
 
Forced Choice Method11.
 
MBO12.
 
Field Review Technique13.
 
Performance TestWe will be discussing the important
performance appraisal tools and techniques
in detail.
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 relativeposition of each employee is tested in terms of his numerical rank. It may also be done byranking a person on his job performance against another member of the competitivegroup.
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
iii.
 
The “whole man” is compared with another “whole man” in this method. In
practice, it is very difficult to compare individuals possessing various individualtraits.iv.
 
This method speaks only of the position where an employee stands in his group. Itdoes not test anything about how much better or how much worse an employee iswhen compared to another employee.v.
 
When a large number of employees are working, ranking of individuals become adifficult issue.vi.
 
There is no systematic procedure for ranking individuals in the organization. Theranking system does not eliminate the possibility of snap judgements.
2.
 
Forced Distribution method
 
This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (eg: superior, above average, average) or percentiles (eg: top 10percent, bottom 20 percent etc). Both the number of categories and percentage of employees to be allotted to each category are a function of performance appraisal designand format. The workers of outstanding merit may be placed at top 10 percent of thescale, the rest may be placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.
Advantages of Forced Distribution
i.
 
This method tends to eliminate raters biasii.
 
By forcing the distribution according to pre-determined percentages, the problemof making use of different raters with different scales is avoided.
Limitations of Forced Distribution
iii.
 
The limitation of using this method in salary administration, however, is that itmay lead low morale, low productivity and high absenteeism.Employees who feel that they are productive, but find themselves in lowergrade(than expected) feel frustrated and exhibit over a period of time reluctance towork.
3.
 
Critical Incident techniques
Under this method, the manager prepares lists of statements of very effective andineffective behaviour of an employee. These critical incidents or events represent theoutstanding or poor behaviour of employees or the job. The manager maintains logs of each employee, whereby he periodically records critical incidents of the workersbehaviour. At the end of the rating period, these recorded critical incidents are used in the
evaluation of the worker’s performance. Example of a good critical incident of a
Customer Relations Officer is : March 12 - The Officer patiently attended to a customerscomplaint. He was very polite and prompt in attending the customers problem.
Advantages of Critical Incident techniques
i.
 
This method provides an objective basis for conducting a thorough discussion of an employees performance.ii.
 
This method avoids recency bias (most recent incidents are too much emphasized)
Limitations of Critical Incident techniques
iii.
 
Negative incidents may be more noticeable than positive incidents.iv.
 
The supervisors have a tendency to unload a series of complaints about theincidents during an annual performance review sessions.v.
 
It results in very close supervision which may not be liked by an employee.vi.
 
The recording of incidents may be a chore for the manager concerned, who maybe too busy or may forget to do it.
4.
 
Checklists and Weighted Checklists

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