Question

Explain the main methods of performance appraisal.

State two methods of performance appraisal.

Name any one modern method of performance appraisal.

List four methods of staff appraisal.

Answer 1

Traditional Method

1. Ranking Method
2. Paired Comparison
3. Grading
4. Forced Distribution Method
5. Forced Choice Method
6. Checklist Method
7. Critical incident methods
8. Graphic Scale method
9. Essay method
10. Field Review Method

Modern Method

1. Management by Objectives
2. Behaviorally anchored rating scales
3. Assessment Centres
4. 360-degree appraisal
5. Cost accounting method

Answer 2

1. Employee Ranking: Under the method, the supervisor compares an employee with all other employees in the group on the basis of their job performances. The best employee is given the first rank, the second best the second rank, and so on. All employees are ranked on an overall basis.
2. Graphic Rating Scales: In this method, a graphic scale is established that measures different degrees of a quality or factor to be rated. Generally, several degrees are used for each factor, ranging from highest to lowest. The rater can estimate the degree to which each quality or trait is present in an employee by observing his behavior on the job.
3. Merit Grading: In this method, certain grades (categories) of merit are decided. The raters are required to distribute the ratings into predetermined scales. Employees are rated on the basis of overall performance. The ratings must be distributed in such a way that a normal frequency distribution is created. In other words, the appraiser is asked to distribute the ratings as 10% ‘poor’, 20% ‘below average’, 40% ‘average’, 20% ‘above average’ and 10% ‘outstanding’.
4. Checklist Method: This method is also known as the ‘forced choice method’. It was developed by psychologists for the U.S. Army in World War II. It combines rating with a scoring system. Under it, the rater is given a form consisting of four possible statements about a person.