Page 136 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 8: Performance Management System

3. Forced choice Method: The rater is given a series of statement about the employee these Notes
are arranged in the blocks of two or more, and the rater indicates which statement is most
or least descriptive of the employee. For example,
(a) Learns fast---------------------------------------works hard.
(b) Absent often------------------------------------others usually tardy.
The HR department does actual assessment. The advantage is the absence of personal bias
in rating. Disadvantage is that the statement may not be properly framed.
4. Critical Incident Method: It focuses on certain critical behaviours of an employee that
make all the difference between effective and non-effective performance of a job. Such
incidents are recorded by the superiors as and when they occur.
One of the advantages of this is that the evaluation is based on actual job-behaviour. It also
increases the chance that the subordinate will improve because they learn more precisely
what is expected of them. As an disadvantage, negative incidents are generally more
noticeable than positive ones.
5. Behaviorally Anchored Rating Scales: In this the scale represent a range of descriptive
statements of behaviour varying from the least to the most effective. A rater must indicate
which behaviour on each scale best describes an employee's performance. BARS the
following feature:
(a) Areas of performance to be evaluated are identified and defined by the people who
will use the scales.

(b) The scales are anchored by description of actual job behavior that supervisors agree,
represent specific level of performance.
(c) All dimensions of performance to be evaluated are based on observable behaviours
and are relevant to the job being evaluated since BARS are tailored made.
(d) Since the raters who will actually use the scale are actively involved in the
development process, they are more likely to be committed to the final product.
Unfortunately, this also suffers from distortions inherent in most rating techniques.
6. Field Review Method: This is an appraisal by someone outside the assessee's own dept.,
usually someone from corporate office or HR dept. Two disadvantage of this are:
(a) An outsider is not familiar with conditions in an employee's work environment.
(b) He does not have an opportunity to observe employee behaviour of performance
over a period of time.
7. Performance Test: With a limited number of jobs, employee assessment may be based
upon a test of knowledge and skills. The test may be paper & pencil or an actual
demonstration of skills the test must be reliable & validated to be useful. Practically it
may suffer if the costs of test development or administration are high.

8. Annual Confidential Report: ACR is mostly used in government deptts example ITI,
military organizations, etc., it has 14 items namely - attendance, self-expression, ability to
work with others, leadership, initiative, technical ability, ability to reason, name, to a few.
Twelve of these are filled on a four-point grade scale (excellent, good, fair, poor).
Justification is required for outstanding or poor rating. Overall rating on a five-point scale
was separately given (Outstanding, Very good, Good, Average, Poor). Recommendation
for performance was also given.

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