YlETHODS OF PERFORMANCE APPRAISAL

2.1 Group Order Ranking 2.2 Group Rating 2.3 Essay Method 2.4 Check List 2.5 Critical Incidents 2.6 Graphic Rating Scale Method (Conventional Rating Method) . 2.7 Work Standards Approach 2.8 Field Review 2.9 Forced Choice Rating 2.10 Forced Distribution Method 2.11 Paired Comparison Method 2.12 Confidential Report Method 2.13 Assessment Centre 2.14 The Appraisal Interview 2.15 M.B.O. (Management By Objectives) 2.16 Behavioural Observation Scales (BOS) 2.17 Behavioural Checks (BCs) 2.18 Behaviourally Anchored Rating Scales (BARS) 2.19 Intangible Assets Valuation or Intangible Assets Monitoring Approach or Human Resources Accounting method. 2.20 Balanced Score Card Approach 2.21 360 Degree Assessment and Feedback System (Multirater Assessment and Feedback System) - MAFS 2.22 Self Appraisal- Self Appraisal for Managerial Effectiveness 2.23 Selection (choice) of the Appropriate Performance Appraisal Methods.

The group order ranking requires the evaluator to place employees in to a particular classification, such as "top one tenth" or "second one fifth". This method is often used in reconsidering students to graduate schools. Evaluators are asked to rank the students in the top 5 per cent, the next 5 per cent, the next 15 per cent and so forth. But when used by managers to appraise subordinates, managers deal with all their subordinates. So if a rater has twenty subordinates, only four can be in the top fifth and of course, four must also be relegated to the bottom fifth. Advantages The advantage of this group ordering is that it prevents raters from inflating their evaluations, so everyone is rated near the average-outcomes that are nqt unusual with the group-wise rating scale.

Disadvantages
1. The predominant disadvantage surfaces when the number of employees being compared is small. At the extreme, if the evaluator is looking at only four employees, it is possible that they may all be excellent, yet the evaluator may be forced to rank them into top quarter, second quarter, third quarter and last quarter. Theoretically, as the sample size increases, the validity of relative scores as an accurate measure increases but occasionally the technique is implemented with a small group, utilising assumptions that apply to large groups. Another disadvantage which plagues all relative measures is the "zero - sum- game". This means, any change must add up to zero. For example, ifthere are twelve empJoyees in a department perfonning at different levels of effectiveness, by definition, three are in the top quarter, three in the second quarter, and so forth, the sixth last employee, for instance would be in the second quartile. Ironically, if two of the workers in the third and fourth quartiles leave the department and are not replaced, then our sixth best employee now falls into the third quarter. Because comparisons are relative and an employee who is mediocre may score high only because he or she is the "best of the worst". In contrast, an excellent perfonner, who is matched against "stiff competition" may be evaluated poody, when in absolute terms his or her performance is outstanding.!

2.

In practice, it is often found that some raters use high standards than others when rating technique may be used. In such a case, a member from thepersonnd" department meets the raters (appraisers) in each supervisory unit and discusses each employee's rating so that the group can arrive at a coiicensus. This method also helps the raters to develop similar standards for evaluation. Such a group judgement technique is fairer than individual rating and helps the personnel department to assess the relative degree of toughness or leniency in the rater, although it is a very time consuming method.2

In the essay method, the appraiser writes a free-fonn of essay describing the subordinate's perfonnance in a number of broad categories. Some categories that can be included.in these fonns are: (a) (b) (c) (d) (e) (f) overall appraisal of the employees perfonnance; the employee's promotability; the jobs the employee can currently perfonn; the employee's strengths and limitations; additional training needs; and potential and areas of improvement. Sometimes, essay appraisals supplement other appraisal methods rather than substituting for them.

Advantages
The advantages claimed for essay method can be summed up as follows:
1. 2. 3. 4. 5. 6. This approach gives the appraiser facilities requiring attention to a specific set offactors. Essays can provide detailed feedback and establish useful performance related communication between a manager and his subordinate. An essay, if constructed by some one who has complete knowledge of another's perfonnance can have substantial value. The strength of the essay appraisal lies in its simplicity. The essay appraisal can provide considerable infonnation, much of which can easily be fed back and assimilated by the employee. It requires no complex form or extensive training to c0111plete.

Disadvantages
The disadvai'ltages of the essay method can be summed up as follows:
1. 2. 3. 4. 5. 6. 7. Because of the open endedness of this method, it is difficult to compare essay appraisals made by different supervisors. This method is excessively dependent upon the writing skills of the supervisors. It is a time consuming method. The narrative essays suffer from the problems cited for the MBO (Management By Objectives) method. Specifically the product of the appraisal session tends to be more developmental than administrative (that is evaluative) value. Narrative accounts tend to be highly individualised, rendering comparisons among individuals. . Since most organisations employ perfonnance appraisals as an aid to administrative decision-making, the narrative technique may have limited usefu1riess for m~ny organisations.3 Because the essays are constructed, they are likely to compare individuals across the organisations.

8.

9. 10.

Some rates are better written than others. So a "good" or "bad" evaluation may be determined by the rates, writing skills or by the employee's actual level of perfonnance. This method provides only qualitative data and decision-making improves when useful quantitative data are generated. Quantitative data ~an be compared and ranked more objectively.

Under this method, the rater is presented with a test of positive or negative adjectives or descriptive behavioural statements and is asked to check of all those that apply to the person being rated. A score can be developed by tallying tbe positive checks. The following are the illustrative check list statements: Displayed unpleasant behaviour to sales person. Absented from work frequently. Talked rudely and abruptly on the telephone. Created a disturbance with loud talking. Reprimanded a requisitioner in the presence of others. Accepted inferior quality goods from a supplier. Failed to follow the chain of command. Helped a requisitioner prepare a purchase order. Displayed courteous behaviour to a salesperson. Rejected inferior quality goods. Developed a new procedure that reduced pap~r work. Rejected a bid that was unreasonably priced. Helped fellow employees to solve their problems. Suggested a new procedure. Remained punctual at his work Co-operates with co-workers Keeps work spot neat and clean Can be expected to complete the work on time Maintains detailed records Reluctant to even work over time Cannot accept constructive criticism Supervisor's orders are usually followed Approaches the customers promptly Suggests additional merchandise to customers Keeps busy when not serving a customer Loses temper in public Volunteers to help other employees
Fig. 2.1 : Check List

Source: B.P. Singh and P.L. Tameja, Personnel Management and Industrial Relations, Dhanpat Rai and Sons, New Delhi, 1990, p. 194,