Friday, August 19, 2011

Different Performance Appraisal Methods

This blog post is about different performance appraisal methods that are used in different organizations. Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. It is done to determine who needs more training, who will be promoted, demoted, transferred etc. It motivates the employees to learn and grow.

There are two methods for the performance appraisal

A. Traits Appraisal

Performance is measured on the basis of qualities of employees. Emphasis is made on quantity and quality of work done, skill, intelligence, dependability, adaptability etc. There are several variants for appraisal method.

i. Ranking Method: This is the method in which employees are ranked on the basis of more or less effective and are compared inter-personally. This method is useful when numbers of employees are less.

ii. Rating-scale Method: In this rating scale is used to measure the employees’ qualities and attributes. For example, the quality “initiative” is divided into five degrees on the scale: exceptional, above average, average, below average, and poor. Rater tick marks the one degree that he feels more suitable for the employees.

iii. Graphic scale Method: this method is similar to the rating scale method, in this degree and attributes are indicated on the graph or chart.

iv. Check-list Method: Listing of number of statements about the performance and behavior of employees. Rater verify the statement whether it applies or does not apply to the employee.

v. Critical Incidental Method: This method involves employee appraisal on the basis of events or incidents and analyze employee reactions on a particular situation.

B. Modern Methods of Performance Appraisal

There are some modern methods used for performance appraisal particularly for managerial personnel.

i. Appraisal by Results: It implies evaluation of the managerial performance in terms of objectives. In this process, appraisal to measure how managers are able to set the objectives and in how much time that can be achieved.


  1. The basis of appraisal is to measure the performance against target.
  2. It is a participative technique, as target that needs to be achieved is already discussed with the superior.
  3. It aims at developing the performance.
ii. Appraising Managers as Managers: This is the approach that is used to evaluate the performance of the managers in terms of basic functions and tasks of management.