NATIONAL UNIVERSITY OF MODERN LANGUAGES

Department of Management Sciences Lahore,

Campus.

Assignment # 3:

• HRM

Prepared by:

• Muhammad Mursaleen

Roll no:

• LCM-3891

Section:

• BBA-IV-B
Submission date:

• 25-May-2021
Submitted to:

• Miss Erum Batool

Write down advantages and disadvantages of each method of
performance
measurement tool?
There are 8 methods of
performance management for
employee Appraisal:

Graphical rating scale:

A graphic rating scale lists the
traits each employee should
have and rates workers on a
numbered scale for each trait.
The scores are meant to separate employees into tiers of performers, which can
play a role in determining promotions and salary adjustments. 

Advantages:

 The method is easy to understand and quite user friendly.

 It allows behaviors to be quantified making appraisal system much easier.
 Its time and cost-effective for HR department.

Disadvantages:
 Responses Are Open To Interpretation
 Final Scores Can Be Deceiving
 ‘Average’ Results Can Be Difficult to Interperate.
 Recent Events Can Influence Answers.

Alteration ranking method:

This method is implemented by ranking the
highest performer, then the lowest performer,
then the second-highest performer, the second
lowest and so on until a list of names is
 deduced giving a ranking of employees from the highest performer to the
lowest.

Advantages:

 Its fast
 Easy to complete
 Results in a numerical evaluation
 Identifies the top performer

Disadvantages:

 In applying this method that employees are often compared to each other
only on an overall performance rather than on specific job criteria.
 High Stress and High Turnover
 Loses Effectiveness Over Time
 Not easy to practically compare each of the employees & for large
organizations.

Paired comparison method:

Paired comparison involves pair-
wise comparison .i.e., comparing
entities in pairs to judge which is
preferable or has a certain level of
some property. All employees are
compared against each other on all
performance criteria, and the
employee with the most affirmative
answers is ranked highest.

Advantages:

 Paired comparison method quick and easy to use if few employees are to be
rated
  It provides ease to the manager to compare two employees or two groups of
employees with each-other at a time instead of comparing all employees to
one another.
 Took less time to divide the task among the employees for paired
comparison.

Disadvantages:

 It take too much time with a large number of employees.

 Employees are often compared with each other on an overall performance.
 All the employees are assigned with the same task.

Forced distributed method:

Forced distribution is a method of
employee performance appraisal that many
companies use. We also call it the forced
distribution method, stacked ranking,
or bell-curve rating.

Advantages:

 It can boost productivity.

 Among companies that adopt the
method, managers have hard
conversations with employees. These
are conversations they might not otherwise have had.
 It provides a sound and defensible rational for all important personnel
actions including pay raises, promotions, bonuses, developmental
opportunities, layoffs and terminations.
Disadvantages:
 Forced distribution often causes worker morale problems. Many employees
who find themselves with a middle ranking, feel that they should be higher
up.
 Hard working employees especially resent not being in the top categories.
  The system can also lead to declining talent in the company. By having too
many top-ranked workers in a company, it subsequently becomes difficult to
maintain a top rating.
 Therefore, people hire personnel with a lower ranking. This means taking on
employees who are less productive so that they can retain their high ranking.
 There is also a greater risk of burnout.

(MBO) Management
By Objective:
Management by objectives
(MBO) is a strategic
management model that
aims to improve the
performance of an
organization by clearly
defining objectives that are
agreed to by both
management and employees.

Advantages:

 Employees taking pride in their work with goals that they know they can
achieve.
 It also aligns employees with their strengths, skills, and educational
experiences.
 MBO also leads to increased communication between management and
employees.
Disadvantages:
 MBO is focused on goals and targets, it often ignores other parts of a
company, such as the culture of conduct, a healthy work ethos, and
areas for involvement and contribution.
 MBO puts increased strain on employees to meet the goals in a
specified time frame.
  If management solely relies on MBO for all management
responsibilities, it can be problematic for areas that don't fit under
MBO.

Critical Incident Method:

Critical incident method or critical
incident technique is a performance
appraisal tool in which analyses the
behavior of employee in certain
events in which either he performed
very well and the ones in which he
could have done better. In critical
incident method the observer
observes critical human behaviors,
skills used, incidents that occur on the job.

Advantages:

 Flexible method that can be used to improve when there is multiple task.
 Data is collected from the respondent's perspective and in his or her own
words.
 Does not force the respondents into any given framework
 Identifies even rare events that might be missed by other methods which
only focus on common and everyday events.
 Useful when problems occur but the cause and severity are not known.
 Inexpensive and provides rich information

Disadvantages:
  The Critical Incident Technique will rely on events being remembered by
users and will also requires the accurate and truthful reporting of them.
Since critical incidents often rely on memory, incidents may be lack in
accuracy or may even go unreported.
 The method has a built-in bias towards incidents that happened recently,
since these are easier to recall.
 Respondents may not be familiar to or willing to take the time to tell (or
write) a complete story when describing a critical incident.
 Since this method is based on incidents it does not say anything about the
everyday situation so it is not very representative.

(BARS) Behavioral Anchored

Rating Scale Method:
Behaviorally Anchored Rating Scale
(BARS) is a scale used to rate the
performance of employees. It is an
appraisal mechanism that seeks to
combine the benefits of narratives,
critical incidents and quantified
ratings by anchoring a quantified
scale with specific narratives of performance ranging from good, satisfactory and
poor performance.

Advantages:
 These rating scales have been found to be extremely reliable. Even when
different people rate the individual’s performance, the numerical ratings
remain the same. That’s because what’s being measured is performance
against specific behaviors.
 Behaviors are outlined in the scale, it is clear to see whether the person is
demonstrating these. There is little room for argument on this scale as
everything is outlined clearly.
  As BARS is designed extremely accurately, errors are unlikely to occur.
When comparing an individual to the performance dimensions, it is
improbable that you will make a mistake. This accuracy only adds to the
reliability of the test as well.

Disadvantages:
 It is terrific that each appraisal is individualized to the staff member, this is
time-consuming. The time cost alone makes this appraisal process
extremely costly, especially for massive companies with many employees.
 If one manager in the organization is not interested in conducting this
process, there is no way they will get it done. It requires a lot of time and
devotion to add all of the detailed information.
 Some performance dimensions can seem remarkably similar or even overlap
entirely. This makes it hard to rate people on these dimensions, and there
may be a lack of discriminant validity.

360 Degree feedback:

360 degree feedback or assessment is a feedback system where an employee
receives feedback from all the people around him related to business. In 360
degree feedback, a feedback about the employee is received from everyone with
whom he has interacted with in the course of executing his job responsibilities.
360 degree feedback is obtained from peers, teammates, subordinates, direct
reports and even external parties like suppliers and vendors.
Advantages:

 It helps in evaluating the overall

performance of an employee
 360 degree feedback gives a complete
view of the work the employee has
done, and just based on some
supervisors review
 This feedback shows all the
competencies of an employee across
various domains and verticals of
business
Disadvantages:

 Favoritism can affect the feedback of certain employees who otherwise

must be working well
 360 degree feedback mostly gives qualitative feedback and might overlook
the quantitative performance of an employee
 Unfair feedback from some people may lead to an ambiguous ratings of the
employee's performance.

Thankyou