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Pretty Bhalla, Lovely Professional University                      Unit 6: Methods of Performance Appraisal



                     Unit 6: Methods of Performance Appraisal                                   Notes


             CONTENTS

             Objectives
             Introduction
             6.1   Traditional Performance Rating
             6.2   Newer Rating Methods
             6.3  Results-oriented Appraisal

             6.4   360-degree Feedback or 360-degree Appraisal
             6.5  Balance Scorecard
             6.6  Assessment Centre
             6.7   Common Rating Errors

             6.8  Summary
             6.9  Keywords
             6.10 Self Assessment
             6.11 Review Questions
             6.12 Further Readings

          Objectives


          After studying this unit, you will be able to:
               Explain the methods of performance appraisal
               Identify the common rating errors

          Introduction

          Structure and Sayles have classified performance appraisal into three groups: traditional

          performance rating, newer-rating method and result-oriented appraisal. A brief description of
          each is as follows:

          6.1 Traditional Performance Rating

          Traditional rating involves a completion of a form by the immediate supervisor of the individual
          who is being evaluated. In some cases, attempts are made to accomplish the rating by a committee
          consisting of the immediate supervisor, the supervisor’s superior and one or two more offi cers
          of the company who are familiar with the rates. Although ratings by the committee bring several
          viewpoints together and overcome the superior’s bias, if any, they are highly time-consuming.
          The conventional rating scale form incorporates several factors, such as, job knowledge, judgment,
          organizing ability, dependability, creativity, dealing with people, delegation, and leadership.
          The rating is assigned by putting a tick mark horizontally. Frequently, descriptive phrases are
          given in the form to guide the rater while evaluating the rates. This method is very simple to
          understand and easy to apply. On the basis of ratings on specific factors, it is possible to identify

          areas in which the individual requires further development. The ratings on specific factors can be

          summated to obtain a composite performance score.


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