MODERN

METHODS OF
PERFORMANCE
APPRAISAL
 BEHAVIOURALLY ANCHORED RATING
SCALES
(BARS)

LSO KNOWN AS BEHAVIOURAL EXPECTATION SCALE

METHOD

OMBINATION OF RATING SCALE AND CRITICAL

INCIDENT TECHNIQUE.
STEPS FOR THE CONSTRUCTION OF BARS:

DENTIFY CRITICAL INCIDENTS

ELECT PERFORMANCE DIMENSIONS

ETRANSLATE THE INCIDENTS

SSIGN SCALES TO INCIDENTS

EVELOP FINAL INSTRUMENTS

ADVANTAGES AND DISADVANTAGES
A
DVANTAGES:
ISADVANTAGES
CCURATE

ELIABLE
IME CONSUMING
ATING IS MORE ACCEPTABLE
CTIVITY ORIENTED THA
SE OF INCIDENTS HELP IN RESULT ORIENTED
PROVIDING FEEDBACK TO THE
EMPLOYEE BEING RATED
 HUMAN RESOURCE ACCOUNTING
METHOD

A IS JUDGED IN TERMS OF COST AND

CONTRIBUTION.

EFERS TO THE ACTIVITY DEVOTED TO ATTACHING

MONEY ESTIMATES TO THE VALUE OF THE FIRM’S
INTERNAL HUMAN ORGANISATIONAND ITS EXTERNAL
CUSTOMER GOODWILL.
ASSESSMENT CENTER METHOD

T MEASURES COMMUNICATIONS SKILLS, ABILITY,INTREPERSONAL

ABILITY,ABILITY TO PLAN AND ORGANISE

ELP TO DETERMINE T&D NEEDS OF THE EMPLOYEES AND PROVIDE

DATA FOR HRP

YSTEMATIC WAY OF RECORDING THE BEHAVIOR

IME CONSUMING

XPENSIVE

EMOTIVATES THE EMPLOYEE

 MANAGEMENT BY OBJECTIVE(MBO)
HIS CONCEPT WAS GIVEN BY PETER DRUCKER IN 1954.

anagement by objectives (MBO) is a systematic and

organized approach that allows management to focus on
achievable goals and to attain the best possible results from
available resources. It aims to increase organizational
performance by aligning goals and subordinate objectives
throughout the organization. Ideally, employees get strong
input to identify their objectives, time lines for completion,
etc. MBO includes ongoing tracking and feedback in the
process to reach objectives
Continued…

he essence of MBO is participative goal setting,

choosing course of actions and decision making.

n important part of the MBO is the measurement and

the comparison of the employee’s actual performance
with the standards set.
PROCESS OF MBO
ADVANTAGES AND DISADVANTAGES
A
DVANTAGES
ISADVANTAGES
NDS MEAN CHAIN

OLE CLARITY IFFICULTY IN GOAL

SETTING
BJECTIVE APPRAISAL

OTIVATION AND COMMITMENT ROBLEM IN

PARTICIPATION
ANEGEMENT DEVELOPMENT

ORDINATION ACK OF UNDERSTANDING

 360 FEEDBACK METHOD
60 degree feedback, also known as 'multi-rater feedback',
is the most comprehensive appraisal where the feedback
about the employees’ performance comes from all the
sources that come in contact with the employee on his job.

360 degree appraisal has four integral components:

1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Superiors
It’s Contribution:

he 1st line supervisor is often in the best position to

SUPERIORS effectively carry out the full cycle of performance
management.

he supervisor may also have the broadest

perspective on the work requirements and be able
to take into account shifts in those requirements.

Cautions to be addressed:
• Superiors should be able to observe and measure all facets of
the work to make a fair evaluation.

• Supervisors should be trained. They should be capable of

coaching and developing employees as well as planning and
evaluating their performance.
 Self
It’s Contribution:
elf-ratings are particularly useful if the
entire cycle of performance management
involves the employee in a self-assessment.
he developmental focus of self-assessment
is a key factor.
pproximately half of the Federal employees
in a large survey felt that self-ratings would
contribute “to a great or very great
extent” to fair and well-rounded PA.
elf-appraisals are particularly valuable in
situations where the supervisor cannot
readily observe the work behaviors and
task outcomes.
Cautions to be addressed:
esearch shows low correlations between self-ratings
and all other sources of ratings, particularly supervisor
ratings. The self-ratings tend to be consistently higher.
This discrepancy can lead to defensiveness and
alienation if supervisors do not use good feedback
skills.
ometimes self-ratings can be lower than others’. In
such situations, employees tend to be self-demeaning
and may feel intimidated and “put on the spot.”
elf-ratings should focus on the appraisal of
performance elements, not on the summary level
determination. A range of rating sources, including the
self assessments, help to “round out” the information
for the summary rating.
 Peers It’s
Contribution:

mployees report resentment when they believe that their extra efforts are required to “make the
boss look good” as opposed to meeting the unit’s goals.

eer ratings have been an excellent predictors of future performance and “manner of
performance”.

he use of multiple raters in the peer dimension of 360-degree assessment programs tends to
average out the possible biases of any one member of the group of raters.

he increased use of self-directed teams makes the contribution of peer evaluations the central
input to the formal appraisal because by definition the supervisor is not directly involved in the
day-to-day activities of the team.

he addition of peer feedback can help move the supervisor into a coaching role rather than a
purely judging role.
 Subordinates
Cautions to be addressed:
It’s Contribution:
formalized subordinate feedback
program will give supervisors a more
comprehensive picture of employee
issues and needs.
mployees feel they have a greater voice
in organizational decision-making.
he feedback from subordinates is
particularly effective in evaluating the
supervisor’s interpersonal skills.
However, it may not be as appropriate
or valid for evaluating task-oriented
skills.
ombining subordinate ratings, like peer
ratings, can provide the advantage of
creating a composite appraisal from the
averaged ratings of several
subordinates.
he need for anonymity is essential when using
subordinate ratings as this will ensure honest feedback.
upervisors may feel threatened and perceive that their
authority has been undermined when they must take into
consideration that their subordinates will be formally
evaluating them.
ubordinate feedback is most beneficial when used for
developmental purposes. But precautions should be
taken to ensure that subordinates are appraising
elements of which they have knowledge.
nly subordinates with a sufficient length of assignment
under the manager should be included in the pool of
assessors. Subordinates currently involved in a
disciplinary action or a formal performance improvement
period should be excluded from the rating group.
Organizations currently undergoing downsizing and/or
reorganization should avoid this source of PA.
 CUSTOMERS
It’s Contribution:
•Customer feedback should serve as
an “anchor” for almost all other
performance factors.
•Including a range of customers in PA
program expands the focus of
performance feedback in a manner
considered absolutely critical to
reinventing the organization.
Cautions to be addressed:
•Generally the value of customer
service feedback is appropriate for
evaluating team output (there are
exceptions).
•Customers, by definition, are better at
evaluating outputs as opposed to
processes and working relationships.
•It is a time-consuming process.
Advantages
To the team:
To the individual:
Increases communication
Helps individuals to understand how others
Higher levels of trust
perceive them. 
Better team environment
Uncover blind spots 
Supports teamwork
Quantifiable data on soft skills
Increased team effectiveness

To the organization:
Reinforced corporate culture by linking survey items to
organizational leadership competencies and company
values
Better career development for employees 
Promote from within 
Improves customer service by involving them
Conduct relevant training