These may include knowledge, initiative, loyalty, leadership and judgment. The top 10 performance appraisal methods based on the above-mentioned criteria are listed below: 1. The superior is asked to rate the performance of the employees on the basis of these scales. Volume of work under normal working conditions b. It is particularly useful where you do not have objective data to base this on.
But it has also some limitation. Disadvantages of Essay Evaluation: i. For instance, the workers of outstanding merit may be placed at the top 10% of the scale. There are various applications of appraisals like compensation, performance improvement, promotion, termination, test validation, and much more. This can lead to awkwardness as people do not strictly fall within the lowest, the highest or average performers. Psychological appraisals: These appraisals involve assessment of the intellectual abilities, emotional stability, reason and analytical skills, sociability etc.
This is a fair method of evaluating because the employee knows the odds that he is measured against. Performance mechanism is a method of assessing the contribution of employees at different levels of the organization during a particular period of time. He merely reports and final rating is made by the personnel department. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. The evaluators are given a graph and asked to rate the employees on each of the characteristics. When a large number of employees are working, ranking of individuals become a difficult issue. This is a fast and easy method of evaluation, making it cost-effective to administer.
Management By Objectives Method 9. Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. To be effective, the standards must be visible and fair. The method has certain drawbacks such as while choosing from one of the statements, the rater is unable to introduce personal bias or halo effect. Alternation Ranking Method: Ranking employees from best to worst on a trait or traits is another method for evaluating employees. This technique is not only used for performance appraisals but also utilized in job interviews.
He may assign biased weights to the questions. Employees may not have a solid sense of self-awareness to provide quality information, which is why this method is usually not an exclusive appraisal. Is the employee helpful to his peers Questions such as these are used in rating. Goals remain inflexible and rigid. Checklist method Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Bias: The tendency to allow individual differences such as age, race, and sex to affect the appraisal rates these employees receive. The employee characteristics include qualities such as initiative, leadership, dependability, cooperativeness, enthusiasm, loyalty, decisiveness, emotional stability, maturity, analytical ability, co-ordination and co-operation.
The problem with this method is that it lacks total job evaluation elements. It is based on the description of the employee by the superior. It involves using situational exercises like an in-basket exercise, role-playing incident, game and many other similar exercises. Once the categories have been developed and statements of effective and ineffective behavior have been provided, the evaluator prepared a log for each employee. One of the risks is that superiors may rate all their people within the middle range. Certain percentage may be fixed for each grade such as 10% of the total personnel must go into the top grade, 20% to the second and so on. To illustrate the method, let us say we have five employees: Ms.
They increase unhealthy cutthroat competitiveness; b. The ratings are done on standardized forms. It is a fair process from the point of view of the organisation and the employee, because it directly indicates the profitability of the company. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. Checklist method: In this method a checklist consisting of objective statement is prepared such as 1.
Behaviourally Anchored Rating Scale This is latest a modern appraisal technique, which has been developed recently. Under this method, the ranking of an employee in a work group is done against that of another employee. Trait Focussed Appraisals This technique is useful for reinforcing positive work ethics and culture in the organisation. It can be used by startups for evaluating employees serving at senior level. This method eliminates personal bias to a large extent as multi raters evaluate the performance, but this is a very time consuming process. With this method, predetermined percentages of rates are placed in performance categories.