Performance Management System

METHODS OF APPRAISAL The last to be addressed in the process of designing an appraisal program is to determine methods of evaluation. Numerous methods have been designed to measure the quantity and quality of employees job performance. Each of the method discussed could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular type or employees. Broadly, all the approaches to appraisal can be classified into I) Past-oriented methods II) Future-oriented methods PAST-ORIENTED METHODS: Rating scales Checklists Forced choice method Forced distribution method Critical incident method Behaviorally anchored scales Performance tests and observations Annual confidential reports Essay method Cost accounting approach

FUTURE ORIENTED METHODS: Management by objectives 360-Degree appraisal Psychological appraisals Assessment centers NEWER OR MODERN METHODS OF APPRAISAL As we have seen, most traditional methods emphasize either on the task or the worker's personality, while making an appraisal. In order to bring about a balance between these two, modern methods have been developed. Of such methods, the most important are: Appraisal by Results or Management by Objectives, Assessment Center Method. Behaviorally Anchored Rating Scales.

Performance Management System

MANAGEMENT BY OBJECTIVES (MBO) OBJECTIVES OF MBO: It is result oriented or it is the performance, which matters the most. It provides responsibility and accountability and recognizes that employees have needs for achievement and self-fulfillment. It meets this need by providing opportunities for participation in goal setting process. 360-Degree Feedback OBJECTIVES OF 360-DEGREE FEEDBACK: The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. Results are also used by some organizations in making administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degreereview." BEHAVIORALLY ANCHORED RATING SCALES (BARS) This is a new appraisal technique, which has been recently developed. THE ASSESSMENT CENTER METHOD The assessment center concept was initially applied to military situations by the German Army in 1930s.the most important feature of this method is job related simulations or mock situations. These simulations involve characteristics that managers feel are important for job success. The evaluators observe and evaluate participants as they perform activities commonly found in these higher-level jobs. STRAIGHT RANKING METHOD It is the oldest and the simplest method of performance appraisal, by which the man and his performance are considered as an entity by the rater. That is the ranking of a man in a work group is done against that of another. The relative position of each man is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against that of another member of a competitive group by placing him as number one or two or three in total group i.e. persons are tested in order of merit and placed in a simple grouping. This is the simplest method of separating the most efficient from the least efficient: and relatively easy to develop and use. PAIRED COMPARISON TECHNIQUE This is an improvement over the straight ranking method. By this technique, each employee is compared with all other persons in pairs one at a time. With this technique, judgment is easier and simpler than with the ordinary ranking method. The number of times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group. 1

Performance Management System

GRAPHIC RATING SCALE This is the most commonly used method of performance appraisal. Under it a printed forms, one for each person to be rated. According to Jucius, these factors are: employee characteristics and employee contribution. In employee characteristics are included such qualities as imitativeness, leadership, cooperativeness, dependability, industry, attitude, enthusiasm, loyalty, creative ability, decisiveness, analytical ability emotional ability, and co-ordination. In the employee contribution are included the quantity and quality of work, the responsibility assumed, specific goals achieved, regularity of attendance, leadership offered, attitude towards superiors and associates, versatility etc. These traits are the evaluated on a continuous scale, wherein the rater places a mark somewhere along a continuum. This method was introduced by Walter D. Scott to get the judgment of superiors on the subjects.

FORCED CHOICE DESCRIPTION METHOD This method evolved after a great deal of research conducted for the military services during World War II. It tries to check a raters tendency to give consistently high or low ratings to all employees. Under this method, the rating elements are several sets of pair phrases or adjectives (usually sets of four phrases two of which are positive, two negative) relating to job proficiency or personal qualifications. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. The following statements are examples of the type of statement that are used; Makes little effort from his own side Organizes the work well Lacks the ability to make people feel at ease Has a cool temperament Is punctual and careful Is dishonest and disloyal Is hard worker and co-operative In the above, phrases are both favorable and unfavorable, while the favorable ones get a plus credit; the unfavorable ones get no credit. CRITICAL INCIDENT METHOD This method was developed following research conducted by the armed forces in the United States during World War II. The essence of this system is that it attempts to measure workers performance in terms of certain events or episodes that occur in

Performance Management System

the performances of the rates job. These events are known as Critical incidents. The basis of this method is the principle that there are certain significant acts in each employees behavior and performance which make all the difference between success and failure on the job. The supervisor keeps a written record of the events (either good or bad) that can easily be recalled and used in the course of a periodical or formal appraisal. Feedback is provided about the incidents during performance review session.