Performance Appraisal Methods

Foreign specialists offer more types of method classification. Their classification is as follows:

☛ Traditional and modern methods.

☛ Objective methods or performance-oriented methods and judgmental methods.

☛ Scaling methods, narrative methods.

☛ Comparative, rating, narrative and behavioral methods.

Three groups of methods may be distinguished according to the time horizon:

☛ Methods focusing on the past that are targeted at past events.

☛ Methods focusing on the present state that evaluate the current situation.

☛ Methods focusing on the future that are oriented towards future forecasts.

The following characteristics of the appraisal process are discussed:

1) Observation, reward opportunities, and systemic issues such as function and expectations within the context of the organization.

2) The appraiser's automatic attention processes, categorization and memory, and information search and recall.

3) Appraisee's automatic and controlled modes of behavior.

The intention to find an optimal way of employee performance appraisal led to the development of a number of methods. Methods differ in terms of their laboriousness, time demands, costs and usability, e.g. for the purposes of reward of employees subject to the appraisal. A significant criterion for the distinction of methods and their suitability for specific situations is time or whether the method is aimed at the evaluating of work already carried out or the identification of future results.

The performance appraisal process is construed as a function of 3 interacting systems: organizational context, the appraiser's information processing system, and the behavioral system of the appraisee. It is argued that aspects of each system constrain the ability of the appraisal process to produce accurate, unbiased, and reliable assessment of individual behavior and performance.

A performance appraisal that measures the relative performance of employees in a group. This is a method of performance evaluation that results in a rank ordering of employees to come up with a best employee. This type of approach measures the relative performance of employees in a group.

Checklist appraisal method's questionnaire is prepared and scored by the HR department. The main disadvantage of checklist appraisal method is the rater is not given the flexibility to add or delete the statements.

A performance appraisal that rates the degree to which the employee has achieved various characteristics. The graphic rating scale is the most common type of appraisal used.

Various characteristics such as job knowledge or punctuality are rated by the degree of achievement. The rate usually receives a score of 1 to 5, with 5 representing excellent performance.

In this method the employee's behavior and performance dimensions are analyzed and used for evaluating the performance of the employee. The HR department is involved in the process of preparing the BARS. Based on the Employee's performance and behavior, employees are anchored in different slots of good, average and poor. The rater is required to give corresponding ratings to the employee.

Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager. The appraisal is based on whether or not the employee has met his or her objectives.

This multi-source feedback method provides a comprehensive perspective of employee performance by utilizing feedback from the full circle of people with whom the employee interacts:

☛ Supervisors

☛ Subordinates

☛ Co-workers

360 degree feedback is effective for career coaching and identifying strengths and weaknesses.

Here are some limitations of performance appraisal methods:

☛ Personal Bias

☛ Halo Effect

☛ Horn Effect

☛ Lack of Uniform Standards

☛ Appropriate Appraisal Technique

☛ Wrong Appraisal by Superior

☛ Stress on Individual and not on Performance

☛ Central Tendency

☛ Lack of Importance to Self-Development

☛ Lack of Communication and Participation with Employees

☛ Time-Consuming and Huge Paperwork

The biggest limitation of performance appraisal is subjectivity. Due to human element in appraisal, there is always a fear of one's own opinion coming in the way of appraisal.

The tendency of a superior to rate a subordinate lower than his performance justifies due to some recent/earlier failures.

The tendency of an individual to rate an employee consistently high due to some earlier good performance rather than his existing performance is called as carrying a halo around oneself.

The standards used by different departments in the organization may not be the same, hence, rating becomes unscientific and employees suffer. Some rates are too liberal while others are too strict causing lack of uniformity.

Ranking appraisal method is difficult to adopt, in case of evaluating large number of employees.

The disadvantage of this method is that their quality depends on the supervisor's writing skills.