Modern Methods Assessment centre Human Resource Accounting Behaviourally Anchored rating scale Management by Objectives 360 degree performance appraisal
Traditional Method
1 confidential Reports It relates to the performance , ability and character of the employee during a year. The report is not databased but subjective No feedback is provided to the employees being appraised and therefore credibility is low. The method focuses on evaluation rather than developing the employees.
Graphic Scales
It is the simplest and most popular method for appraising performance. A rating scale which lists traits and a range of performance values for each trait. The supervisor rates each subordinate by circling or checking the score that best describes his performance for each trait. The Assigned values for the traits are then totalled. Scales can be continuous or discontinuous It imposes a heavy burden upon the supervisor.
Grading system
Employees are given grades according to the judgement of the rater. Under this system certain features like analytical ability, cooperativeness, dependability, job knowledge etc are selected for evaluation. A- outstanding , B very good, C- satisfactory D Average, E Below Average etc.
Cont..
The method involves a very lengthy and time consuming procedure. This method is costly in nature Financial burden is increased when diverse jobs are evaluated as a separate procedure must be established in each job.
Modern Methods
Assessment centre It is a central location where the managers may come together to participate in job related exercises evaluated by trained observers. First developed in USA and UK in 1943 Crompton Greaves, Unilever are using the method with high positive results. Earlier it was used for hiring but now they are used for evaluating executive or supervisory potential. It measures interpersonal skills, communication skills, ability to plan and organise, self confidence, resistance to stress, mental alertness.
Management by Objectives
Requires the manager to set specific measurable goals with each employee and then periodically discusses his progress towards these goals. MBO refers to a comprehensive , organisation wise goal setting and appraisal programme . Steps involves 1 Set the organisations goals 2 Set the departmental goals 3 discuss Departmental goals 4 Define expected results 5Performance reviews 6 provide feedback