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Modern methods of performance appraisal

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I. Contents of getting modern methods of performance

Most employees receive annual performance reviews in which their supervisors---and sometimes
a surprising variety of others---evaluate past performance and set future goals. Performance
evaluations began in the 1940s as a way to help companies decide about promotions and wage
increases. Since that time, performance reviews have become a part of work life for many
people, though no federal or state law requires regular employee evaluations.
The Facts
Employee appraisals serve a number of purposes in modern workplaces.
Most importantly, they provide employees with feedback---both positive and negative---about
their performance. The fast pace of today's workplace often leaves little time for this kind of
Job appraisals also encourage retention by giving employees an opportunity to plan their future
within a company. By talking about an employee's goals and strengths, managers can steer
employees toward responsibilities that will grow their job in a desired direction.
The most traditional job performance appraisal remains the most common. Top-down
evaluations are meetings between an employee and her direct supervisor or supervisors. Topdown evaluations assume that an employee's direct supervisor is the best person to determine
where that employee has been more and less successful in the company. Direct supervisors are
also traditionally responsible for determining whether an employee should receive a raise or a

In recent years, top-down evaluations have been combined with other appraisal methods in
efforts to create a more well-rounded view of employee performance.
There are several different types of modern performance appraisal methods. These methods may
be used with top-down evaluations, with each other or by themselves to determine employee
One modern method, called peer-to-peer appraisal, allows co-workers to evaluate each other's
performance. In offices with strong team environments, co-workers may know better than
supervisors how an employee performs on a day-to-day basis.
Another modern appraisal looks at an employee's performance from several different angles. In
360-degree appraisals, managers, co-workers, vendors, customers, staff members, assistants,
members of other departments and people from related companies may all be called on to share
their thoughts about a particular employee. This approach is designed to give a well-rounded
look at an employee's performance.
Self-assessment appraisals have also become common in modern business environments. Most
commonly used in conjunction with another form of evaluation, self-assessments ask employees
to rate their own performance and set their own performance goals for the coming year.
Modern performance appraisal techniques are more employee-focused, making them popular
with employees whose direct supervisors may have little involvement in the employee's everyday
Because modern appraisal methods draw on a variety of sources, they also create a more wellrounded perspective of an employee's performance. In companies with heavy managerial
turnover or in situations where there may be conflict between employee and manager, these
evaluations can be a more-objective way to judge an employee's performance.
All performance evaluations rely heavily on qualitative data, such as communication skills or
leadership, that cannot be measured with hard data. Because of this, appraisals are necessarily
subjective, a fact that can cause problems if employees are unhappy with their evaluations. One
of the best ways to combat this is to have clearly explained criteria for evaluations and to apply
them across the board, even if the criteria are themselves subjective.

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
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
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
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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