Page 135 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes 8.2 Performance Appraisal Process

Figure 8.1: Performance Appraisal Process

Objectives of Performance
Appraisal

Establish Job Expectation

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use Appraisal Data for
Appropriate Purpose

8.3 Methods of Performance Appraisal

8.3.1 Past-oriented Scale

1. Rating Scale: The typical rating scale system consists of several numerical scales, each
representing a job-related performance criterion such as dependability, initiative, output,
attendance, attitude, cooperation etc., each scale ranges from excellent to poor.. the number
of points attached to the scale may be linked to salary increase, whereby so many points
equal a rise of some percentage.
Nearly all type of job can be evaluated and large number of employees can be evaluated
in a very short time. Disadvantage includes the rater's biases to influence evaluation.
Furthermore, numerical scoring gives an illusion of precision that is really unfounded.
2. Checklists: Under this method, a checklist of statements on statements on the traits of the
employee and his or her job is prepared in two columns i.e., 'YES' column and 'NO'
column. All that the rater is to do is to tick the 'YES' if the answer is positive and tick 'NO'
if the answer is 'NO'. The HR dept. gives point for every "YES' when points are allotted the
technique becomes a weighted checklist.
The advantages are economy, ease of administration, limited training of rater &
standardization. The disadvantage includes improper weights by the HR department.

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