Top 15 Methods used for Performance Appraisal of Employees

Some of the methods used in performance appraisal of employees are as follows:

1. Checklist method:

A checklist is a list consisting of statements of traits, qualities and behavior of employees. It has two columns ‘Yes’ and ‘No’ representing positive and negative responses.

2. Forced distribution method:

In this method, the employee is evaluated on the basis of the pattern of a normal curve with the assumption that the performance level conforms to a normal distribution.

3. Forced choice method:

In this method, the rater is given a series of statement to evaluate the employee. The rater can select any statement that clearly describes the employee.

4. Graphic rating scale:

The most commonly used method in which the rater is presented with a set of traits in a printed appraisal form. Various characteristic such as job knowledge, quality of work, initiative and diligence are rated within a scale of 0 to 9. The employee receives comments from the rater, so that they can improve on the weak points.

5. Essay method:

The supervisor writes an application describing the employee’s performance after taking into certain parameters, such as work performance, strength, weakness, employee’s poten­tial, and areas in which he needs to be trained.

6. Field review method:

An outsider from any other office (HR department) interviews the man­agers and line supervisors to appraise the subordinates working under them. The managers are interviewed about the level of performance, growth potential and positive and negative features of employees.

7. Paired comparison method:

According to this method, the supervisor is given a series of cards, each of them containing the names of two employees. The supervisor chooses the better one of them by comparison. The number of comparisons are divided with a formula N (N- 1)/2

Where N = number of employees to be compared.

8. Grading method:

On the basis of skills, knowledge and traits, employees are graded as outstand­ing, good, fair, average, poor, and unsatisfactory.

9. Ranking method:

The superior gives rank to the employees in order of their merits and demerits. It is very difficult when evaluation of a large number of employees has to be done.

10. Critical incident method:

This method emphasizes critical incident and behaviour of employees used for distinguishing between good and bad performances.

11. Behaviourally anchored rating scales (BARS):

This method is based on the behaviour of the employees on job. The behaviour of an employee is measured against a scale of performance level.

The steps under BARS are as follows:

a. About six to ten performance dimensions are identified and defined by the raters and the ratees.

b. The dimensions are anchored with positive and negative critical incidents.

c. Each ratee is then rated on the dimensions.

d. Ratings are feedback using the terms displayed on the firms.

12. Balanced scorecard:

This method was developed by Robert Kaplan and David Norton. It brings the linkages among financial customer, processes and learning. According to this method strate­gies are translated into clear-cut objectives. All employees should understand how their duties are aligned with higher-level objectives.

Employees should be provided with feedback on how they are accountable for achieving objectives, to what extent they achieved them, and reasons for failure. The scorecard of every employee indicates what all adjustments and performance improvements are required.

13. Human resource accounting:

Human resource accounting deals with the cost and contribution of the employees in an organization. The cost of the employee includes the cost of manpower planning, recruitment, selection and training whereas the contribution is the value added by the employee. The performance of an employee is positive if his contribution is greater than cost and vice versa.

14. Management by objectives method:

Management by objectives is a method in which the superior and subordinate managers of an organization jointly identify its common goals and define each individual’s major areas of responsibility in terms of results expected from them. Thus, it focuses attention on setting goals and accomplishment of the same. During appraisal, superiors and subordinates update and alter goals, as and when required.

15. 360-degree appraisal:

Any person having through knowledge about the job contents can appraise an employee. According to this method all parties related to role of individual in an organization will be rating an employee. Thus, performance appraisal by supervisors, peers, subordinates, customers, employees themselves, other users of services, and consultants is known as 360-degree appraisal.

Submitted by : Dr. Kingston, Category : Human Resource Development, Tag : Employee Management