Traditional Method Of Performance Appraisal

1. Essay evaluation
The superior writes a short essay describing each employee’s performance during the rating period. Evaluation of overall
performance based on strengths/weaknesses of employee performance rather than specific job dimensions. Superior
should have good writing skills.

2. Graphic rating scales

Graphic rating scales is also known as Linear Rating Scale and is one of the oldest widely used and simple technique.
Graphic rating scales compares individual performance to an absolute standard. The appraisers are supplied with printed
forms, one for each employee. These forms contain a number of objectives, behavior and trait based qualities and
characters to be rated like quality & volume of work, job knowledge, dependability, initiative, attitude etc.

3. Checklist method
The checklist is a simple ranking technique in which the supervisor is given a list of statements or words and asked to
check statements representing the characteristics and performance of each employee.
There are three types of checklist methods,
- Simple Checklist
- Weighted checklist
- Forced checklist

Simple Checklist Method: The checklist consist of a large number of statements concerning an employee behavior. The
rater checks to indicate if the behavior of an employee is positive or negative to each statement.
 Simple checklist method:

Is employee regular Y/N

Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N

Weighted checklist method :

weights performance rating

(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5

Relationship 2.0
4. Confidential reports
Assessing the employee’s performance confidentially is a traditional method of performance appraisal. Under this
method, the superior appraises the performance of his subordinates based on his observations, judgement and
intuitions.Superior does not allow the employee to know the report and his performance. The superior writes the report
about his subordinates strengths, weaknesses, intelligence, attitude to work, sincerity, commitment, punctuality,
attendance, conduct ,character, friendliness etc.

5. Ranking method
Under this method, the employees are ranked from best to worst on some characteristics. The rater first finds the
employee with the highest performance and the employees with the lowest performance in that particular job category
and rates the former as the best and the latter as the poorest. Then the rater selects the next highest and next lowest and
so on until he rates all the employees in that group. Ranking can also be used for developmental purposes by letting
employees know where they stand in comparison to their peers they can be motivated to improve performance.

6. Paired comparison method

This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee
with all the other employees in the group, one at a time.

7. Forced distribution method

This method, the rater after assigning the points to the performance of each employee has to distribute his ratings in a
pattern to conform to normal frequency distribution.This method employees are placed in certain ranked categories but
not ranked within the categories. Forced ranking is a method of performance appraisal to rank employee but in order of
forced distribution.
8. Critical incidents method
The supervisor continuously records the critical incidents of the employee performance or behaviors relating to all
characteristics (both positive & Negative) in a specially designed note book. The supervisor rates the performance of his
subordinates on the basis of notes taken by him. The manager maintains logs on each employee, whereby he periodically
records critical incidents of the workers behavior.

Modern Method Of Performance Appraisal

1. Behaviorally anchored rating scales

It combines elements of the traditional rating scales and critical incident methods. Using behaviorally anchored
rating scales, job behaviours from critical incidents-effective and ineffective behaviours are described more
objectively. The method employs individuals who are familiar with a particular job to identify its major components.
Then they rank and validate specific behaviours for each of the components. A behaviorally anchored rating scale is
an employee appraisal system where raters distinguish between successful and unsuccessful job performance by
collecting and listing critical job factors.
2. Assessment centres
This method of appraising was first applied in the German Army in 1930. Later, business and industrial houses
started using this method. It is a system or organisation, where assessment of several individuals is done by various
experts by using various techniques. The major competencies that are judged in assessment centers are interpersonal
skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment
centers are also an effective way to determine the training and development needs of the targeted employees.
3. Management By Objectives (MBO)
MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure
employee performance by examining the extent to which pre-determined work objectives have been met. Usually the
objectives are established jointly by the supervisor and subordinate.

Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to
achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They
are expected to monitor their own development and progress.

4. 360 Degree Feedback Appraisal Systems

360 Degree performance appraisal is the most comprehensive appraisal where the feedback about the employee‘s
performance comes from all the sources that come in contact with the employee on his job. For e.g.: peers, colleagues‘,
supervisors, subordinates, and clients etc, including the employee himself. Such appraisal can provide valuable
information regarding the on the job performance of the employee.

It involves appraisal by those above, below, and to the side of an individual employee, as well as self assessment in
practice. The half yearly or yearly report of work schedule goes from company to their headquarter of all the workers
where their performance is appraised. It contains all demotion, promotion, and other activities related to the
performance.

5. Human Resource Accounting Method

Human Resource Accounting is a method to measure the effectiveness of personnel management activities and the use
of people in an organization. Thus, human resource accounting is primarily involved in measuring the various aspects
related to human asses. Its basic purpose is to facilitate the effective management of human resources by providing
information to acquiring, develop, retain, utilize, and evaluate human resources.