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Study Notes for Performance Appraisal Methods Part -2

By BYJU'S Exam Prep

Updated on: September 13th, 2023

                                                                                                                                                                                                                                                                                         

The presented article is in continuation of our previous article UGC NET Study Notes for Performance Appraisal Methods Part -1. You can also read Traditional methods of Performance Appraisal” in our previous article UGC NET Study Notes for Performance Appraisal Methods Part -1.

Modern methods

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The modern methods of performance appraisal are as follows:

1. Management by Objectives(MBO): This method was developed by Peter Drucker. In this method, certain tasks(objectives) based on their job role are given to the employees and a team is assigned to monitor the tasks.

  • This will help the organization to know the skill gap of the employees.
  • This will help the organization to plan the training modules.
  • The setting of objectives to determine the true potential of the employees is a difficult and time-consuming task.

2. 360-degree appraisal: In this method, an employee is appraised by the supervisors, the clients, the subordinates, the customers, including themselves.

  • This will help the organization to know about the strong and weak areas of the employees.
  • The employees can freely express their views and suggest any changes in the training methods.

3. Assessment centres: In this method, a group of employees are selected and are asked to perform a few tasks individually and a few tasks in teams.

  • These tasks are mainly aimed to check the teamwork, leadership qualities and skill set of the employees.
  • The tasks are mostly related to their job responsibilities.
  • This method is used to decide whether an employee is to be promoted or trained.

4. Behaviourally Anchored Rating Scales (BARS): In this method, all the critical incidents are identified and are divided into different groups based on their departments.

  • The employees are rated on their behaviour towards the incidents rather than on the traits.
  • This will enable the organization to know the involvement of the employees.

Summary

  • Performance appraisal is one of the important processes of performance management that involves assessment of the job performance by taking a few characteristics into consideration.
  • In the Ranking method, the employees are ranked based on their performance levels and other characteristics.
  • In the Grading method, different grades are given to the employees based on their contribution to the organization.
  • In the Paired comparison method, the appraiser compares two employees and marks the better performer. This method is continued until all the employees are compared with one another in this manner.
  • In the Forced choice method, the appraiser is given a set of statements and asked to select one statement which defines the employee.
  • In the Graphical rating method, the appraiser rates different characteristics of the employees in the form of points like 1, 2, 3, 4, 5, 6, 7 or in the form of excellent or average or bad, etc.
  • In the Forced distribution method, the appraiser distributes the employees into five levels like excellent, very good, average, very bad and worst performers.
  • In the Checklist method, all the characteristics are given in the question form and two options yes and no is given to the appraiser for every question. The appraiser has to tick the yes box when the given characteristic is found and no box when it is not.
  • In the Essay method, the appraiser writes about the characteristics of the employee in his own words in the form of an essay.
  • In the Critical incidents method, the performance of the employees during critical incidents is taken into consideration.
  • In the Field review method, the appraiser takes the help of subordinates and supervisors to rate an employee.
  • In the Management by Objectives(MBO) method, certain tasks(objectives) based on their job role are given to the employees and a team is assigned to monitor the tasks.
  • In the 360-degree appraisal, an employee is appraised by the supervisors, the clients, the subordinates, the customers, including themselves.
  • In the Assessment centres method, a group of employees are selected and are asked to perform a few tasks individually and a few tasks in teams.
  • In the Behaviourally Anchored Rating Scales (BARS) method, all the critical incidents are identified and are divided into different groups based on their departments and the behaviour of the employees towards incidents is rated.

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