Performance Appraisal Methods

Categorized as
 Past Oriented Methods
Future Oriented Methods

Past Oriented Methods consists of:

 Rating Scales
 Checklists
 Forced Choice Method
 Forced Distribution Method
Critical Incidents Method
 Behaviorally Anchored Scales
 Confidential Records
 Performance tests and Observation
 Performance Appraisal Methods Cont..

Rating Scales
Consists of numerical scale which represents performance criteria like dependability,
initiative, output, attendance, attitude, cooperation which can be rated from excellent
to poor

Checklists
Similar to questionnaires, checklists consists of statements based on the traits of the
employee and his job, which is prepared into two columns - ‘Yes’ and ‘No’

Total score depends on the no: of ‘Yes’

Sometimes points are being assigned to ‘Yes’ and ‘No’; which is called weighed
checklist

Forced Choice Method

Here rater is expected to select a given statement that describe the ratee and actual
assessment is done by HR department
 Performance Appraisal Methods Cont..

Forced Distribution Method

Here the rater distributes the employee performance on a normal distribution curve

Employee performance are being rated as excellent, good, average, below average,
unsatisfactory

Critical Incidents Method

Method of assessment of employee based on some critical incidents which might
happen regularly are recorded by superiors

Behaviorally Anchored Scales

Here the employee behavior at work are assessed on scales which is rated as
extremely good, slightly good, Neither poor nor good, slightly poor, poor, extremely
poor

Confidential Records
Applicable in assessing Government employees performance considering their
attendance, self expression ability to do work, leadership, initiative, Job knowledge,
reasoning ability, judgment, integrity, responsibility on a four point scale ( Excellent,
Good, Fair, Poor)
 Performance Appraisal Methods Cont..

Future Oriented Methods consists of:

 Management by Objectives
 Psychological Appraisals
 Assessment Centers
 360 Degree system of Appraisal
 Rating Committees
 Self Appraisal
 Performance Appraisal Methods Cont..

Management by Objectives

Psychological Appraisals
Applicable to large organization, where full time industrial psychologists are available

Appraisal consists of in-depth interviews, psychological tests, discussion with

supervisors, review of other evaluation

Psychologists assess employees intellectual, emotional, motivational and work related

characteristics

Assessment Centers
Used for evaluating executive potential

Referred as a central location where managers may come together to have participation in
job related exercises evaluated by trained observers
 Performance Appraisal Methods Cont..

360 Degree system of Appraisal

Defined as the process of assessing the performance of employees by utilizing the service
of superiors, peers, self and customers/suppliers

Developed by General Electric

Practiced in Reliance Industries, Crompton Greaves, Godrej soaps, Wipro, Infosys

Rating Committees
Represents a group consists of immediate supervisor and three or four supervisors which
have regular contact with the employee

Self Appraisal
Process of evaluating performance of employees by himself/herself

Practiced in ITI (Indian Telephone Industries), Texas Instruments

 Performance Appraisal Methods Cont..

360 Degree system of Appraisal

Defined as the process of assessing the performance of employees by utilizing the service
of superiors, peers, self and customers/suppliers

Developed by General Electric

Practiced in Reliance Industries, Crompton Greaves, Godrej soaps, Wipro, Infosys

Rating Committees
Represents a group consists of immediate supervisor and three or four supervisors which
have regular contact with the employee

Self Appraisal
Process of evaluating performance of employees by himself/herself

Practiced in ITI (Indian Telephone Industries), Texas Instruments