Performance Appraisal Methods

Performance Appraisal Methods

1. Definition

   • Formal; structured system of measuring and evaluating job related behaviours

2. Objectives

   • Promotions
   • Identify training needs
   • Provide opportunity for developement
   • Give feedback to improve subsequent performance
   • Document criteria used to allocate rewards
   • Improve Communication
   • Evaluation of HR programmes

3. Appraisal standards

   • Absolute Standards
     • Measured against pre-determined desired goals/behaviour
   • Relative standards
     • Involves comparing employee's performance with other employees
   • Objectives
     • Evaluated on how well they achieve goals

4. Appraisal Methods

   • Graphic Rating Scale
   • Alternation Ranking Method
   • Paired Comparison Method
   • Forced Distribution Method
   • Critical Incident Method
   • Narrative Form
   • Behaviourally Anchored Rating Scale (BARS)
   • 360 Degree Appraisal
   • Management By Objectives (MBO)
     • Process in which managers & employee jointly set objectives for the employees, periodically evaluate performance and reward according to results
     • MBO Process
       • Step 1: Initial Meeting
         • Step 2: Drafting Objectives
           • Step 3: Review & Approval By Manager
             • Step 4: Action Planning By Employee
               • Step 5: Periodic Review