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Performance Appraisal
by Commerce Solutions in

METHODS OF PERFORMANCE APPRAISAL

Once the employees has been selected, trained and motivated, he is then apprised for his performance. Performance appraisal is the step where the management finds out how effective it has been hiring and placing employees. If any problem is identified, steps are taken to communicate with the employees and to remedy them. So “so a performance appraisal is a process of evaluating an employees performance of a job in terms of its requirement “

Several methods and techniques of appraisal are available for measurement of the performance of the employee. The methods and scales differ for obvious reason. First they differ in sources of traits and qualities to be apprised. The quality may differ because of difference in job requirements. Second they differ because of different kinds of workers who are being rated .third the variation may be caused by the degree of precision attempted in an evaluation. Finally they differ because of the method used to obtain weighting for various traits.
The performance appraisal method is divided into three categories these are
Trait-based method
Behavioral method
Comparative method
Result oriented method
The part concerned with me is the comparative   methods
There are so many methods which are include in comparative method but the most important and most popular are
Straight ranking method
Grading method
Graphing rating method
Forced choice description method
Forced distribution methods
Check list method
Critical incident method
Free from easy method



Straight ranking method
It is the oldest and simplest method of performance appraisal, by which the man and his performance are considered as an entity by the rater. No attempted is to made to fractionalize the rate; the whole man compared with the whole man; that is the ranking of a man in a work group is done against that of another. The relative position of each man is tasted in terms of his numerical rank.
Limitation- this is the simplest method of separating the most efficient from the least efficient and relatively easy to develop and use. But the greatest limitation of his method is the
In practice it is very difficult to compare a single individual with human beings having various behavior traits
The method only tell us how a man stands in relation to the others in the group but does not indicate how much better or worse he is than another
It is difficult task when large number of person are rated
It does not eliminate snap judgment.
Grading method-
Under this system, the rater consider certain feature and marks them accordingly to the scale, train categories of worth are first established and carefully defined. The selected feature may be analytical ability, cooperativeness, dependability, self-expression, job knowledge, leadership, etc they may be
A-out standing     B-very good   C-average   D-fair E-poor 
These are used in the selection of candidates by the public service commission
Limitation- in this method we can’t get the actual performance of the employee. for example if consider that those employee who got 50 to 60 point is in average then the who got 50 point may be de motivated and who got 51 point may be happy with that appraisal .
Graphic Rating Method 
This is the most commonly used method of performance appraisal. Under it a printed form one for each person to be rated. The factors which are including in this method are employee characteristics and employee contribution. In employee characteristics are included are leadership, attitude, enthusiasm, locality creative ability, analytical ability, co-ordination. In the employee contribution are include the quantity and quality of work, the responsibility assumed, specific goal achieved, regularity of attendance. These traits then evaluated on continuous scale where in the rather place a mark somewhere along a continuum
Limitation-
However this method also not free from limitation
The rating is generally subjective often the rating cluster on the high side when this method is used
Another severe limitation is that it assume that each characteristics is equally important for all jobs
Forced choice description method
it attempts to correct a rater tendency to give consistently high or low rating to all the employees under this method the rating elements are several sets of pair phrases or adjective relating to job proficiency and personal qualification the following statement are illustrative of the type of statement that are used
Organize the work well
Lacks the ability to make people feel at ease
Has a cool even temperament
Is punctual and careful
Is a hard worker and co-operative
Limitation-
Trained technicians are required prepare sets of series for each occupational group
Most of the raters become irritated with the test because they are not being trusted
The result of evaluation don’t prove useful for training purposes because the rater is ignorant of how he is evaluating the individual  
Forced distribution method
This system is used to eliminate or minimize rater’s bias so that all the personnel may not be placed at the higher end or lower end of the scale. It requires the rater to apprise an employee according to a predetermined distribution scale under this system it is performance and promo ability. For this purpose a five point performance scale is used with out any descriptive statement. Employees are placed between the two extreme good or bad job performances. For ex 10% given to outstanding, 20% given to good and 40% given to satisfactory.
Limitation-
This method use in wage administration leads to low morale and low productive


Checklist method
Under this method the rater does not evaluate employee performance; he supplies report about it and the final rating is done by personnel department. A series of question are presented concerning an employee to his behavior. The rater then checks to indicate if the answer to a question about an employee is positive or negative. The value of each question may be weighed equally or certain question may be weighed more heavily then others.
Example-
Is the employee really interested in job?                               Yes/no
Is he regular on his job?                                                         Yes/no
Is he equipment maintain in order?                                          Yes/no
Does he ever make mistake?                                                   Yes/no
Does he follow instruction properly?                                           Yes/no
Limitation-
This method suffers from bias on the part of the rater because he can distinguish positive or negative question
Process can be expensive and time consuming
Separate checklist must be developed
Free essay method
Under this method the supervisor makes a free form, open ended appraisal of an employee in his own words and put down its impression about the employee. He takes note of these factors
Relation with fellow supervisor
General organization and planning ability
Job knowledge and potential
Employee characteristics and attitude
Production, quality, and cost control
Physical condition and
Development needs
Limitation-
It contains a subjective evaluation of the reported behavior of an individual may effect such employment decision as promotion, lay-off. Etc. 
Some appraisal may not write a descriptive report
The appraisal may be loaded with flowery language about the quality of rate then the actual evaluation
Critical incident method
The essence of this system is that it attempts to measure workers performance in terms of certain events and episode that occur in the performance rates job. These events are known as critical incident method. The supervisor keeps a written record of the event that can easily recalled and used at the time of performance appraisal
Limitation
Negative incident are generally more noticeable than positive ones
The supervisor may be put off and easily forgotten
Very close supervision may be required and it may not be like by the employee