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Managing Human Element at Work

Notes
Figure 5.2: Performance Appraisal Methods

PERFORMANCE APPRAISAL TECHNIQUES

TRADITIONAL METHODS MODERN METHODS

1. Unstructured method 1. BARS Behavioural Anhored
2. Straight ranking method Rating Scale method
3. Paired comparison method 2. Result Oriented Appraisal
4. Man-to-man comparison method or
5. Grading method MBO method
6. Graphic rating method 3. Assessment centre method
7. Forced choice method 4. Human Resource Accounting
8. Checklist method method
9. Weight checklist method 5. Psychological Appraisal
10. Free essay method method
11. Critical incidents method 6. 360 degree appraisal
12. Field review method
13. Confidential reports

Straight Ranking Method

In this technique, the evaluator assigns relative ranks to all the employees in the same work
unit doing the same job. Employees are ranked from the best to the poorest on the basis
of overall performance. This method is also highly subjective and lacks fairness in assessing
the real worth of an employee.

Paired Comparison Method
Ranking becomes more reliable and easier under the paired comparison method. This
method is an attempt to improve upon the simple ranking method. Under this method
employees of a group are compared with one another at one time. If there is a group of five
employees A, B, C, D-and E then A’s performance is compared with that of B’s and a decision
is taken as to whose performance is better. Similarly, A’s performance is compared with C,
D, and E and decisions regarding comparatively better performance are taken. Comparison
is made on the basis of overall performance. The number of comparisons to be made can
be decided on the basis of the following formula:

N(N–1)/N, where N is the number of persons to be compared.
This method is illustrated in figure 5.3.

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