Page 78 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 6: Methods of Performance Appraisal

The quality of an appraiser is much more crucial than the appraisal methods. It is desirable Notes
to make the immediate superior a party to the appraisal program.
Performance is a thing of the past, while potential includes the possible knowledge, skills
and attitudes the employee may possess for better performance.

6.9 Keywords

360-degree Feedback or Appraisal: It is the most comprehensive appraisal where the feedback
about the employees’ performance comes from all the sources that come in contact with the
employee on his job.
The Balance Scorecard: It creates a template of measurement of organizational performance as
well as individual performance and enables organizations to clarify vision and strategy before
initiating action.
Traditional Rating: It involves a completion of a form by the immediate supervisor of the
individual who is being evaluated.

6.10 Self Assessment

Fill in the blanks:

1. In …………………. method of appraisal, the immediate superior to the employees, fill up a
performance review forms.
2. In ………………. method, the employees are assessed relatively to the other employees
working in his group.
3. Internal customers are also known as ……………… whose feedback on employee
performance is instrumental in improving team spirit.
4. An employee’s current evaluation is largely influenced by his previous performances. This

type of error is known as ………………… .
5. Performance appraisal is present oriented, whereas ……………. appraisal is future
oriented.
State whether the following statements are true or false:

6. Performance appraisal can be either formal or informal.
7. MBO may be viewed as a system of management rather than an appraisal method.
8. A 360-degree appraisal is generally found less suitable for the managers.
9. Traditional rating involves a completion of a form by the immediate supervisor of the
individual who is being evaluated.
10. The 360-degree feedback is time consuming and cost consuming assessment process.

6.11 Review Questions

1. Contrast traditional rating method and new rating method of appraisal.
2. “MBO is a tool that is inextricably connected with team building so that the work
commitment of team members can be increased and their desire to excel in performance
can be inspired.” Discuss.
3. How 360 degree feedback system add values?

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