PERFORMANCE APPRAISAL
4. Checklists and Weighted Checklists
In this system, a large number of statements that describe a specific job are given.
Each statement has a weight or scale value attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behaviour of the individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These statements are then categorized by the judges and weights are assigned to the statements in accordance with the value attached by the judges.
Advantages of Checklists and Weighted Checklists
i. Most frequently used method in evaluation of the employees performance.
Limitations of Checklists and Weighted Checklists ii. This method is very expensive and time consuming
iii. Rater may be biased in distinguishing the positive and negative questions.
iv. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviors.
Modern methods:
Assessment Centre Method
This method is used to test the individual in various social situations by using a number of procedures and assessors. The performance, as well as the potential of an employee, is evaluated by this method by assessing his performance on the job-related simulations.
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It includes all the characteristics which the concerned manager feel is important for a candidate to get success in his job. This method uses different techniques such as business games role play and in-basket exercises. It also includes a personal interview and projective tests to assess the career orientation, motivation and dependence on others of an employee.
To assess the intellectual capacity of an employee, written tests are used. Experienced managers are the ones who evaluate this method and then prepare a summary report for the employees as well as the management. This performance appraisal technique is used to measure the planning ability, organizational skills, and interpersonal skills of an employee.
Human Resource Accounting Method
Organizations, who want to evaluate the net contribution of an employee to the company in terms of monetary aspects, use this performance evaluation method. It is used for assigning, budgeting and reporting the cost of the human capital in an organization which includes the salaries, wages and all other training expenses. Organizations, who consider their human capital as valuable assets, use this method to find out the relative worth of their assets in terms of money. The method assesses the cost of employees and their contribution to the company, ideally, the contribution part should be greater than the cost incurred on them. The difference then shows the performance of the employees.
Behaviorally Anchored Rating Scale (BARS)
This method combines the critical incident and graphic rating scale method. This appraisal technique gives emphasis on the job related behaviours of the employees. The method breakdowns the job into various behaviours which are listed on the rating scale. Then the actual behaviors of the employee are compared with the predetermined behaviors rated on the scale.
Management By Objectives (MBO)
This concept was introduced in 1954, by Peter Drucker, to overcome the flaws of traditional appraisal methods. In this method, the superior and the subordinates of an organization together identify its common goals; firstly the organizational goals are defined based on which individual goals are defined by the employees. The performance of the employees is then reviewed on the basis of achievements of individual goals. The method consists of four steps: setting of goals, setting performance standards, comparing the achieved goals with the goals agreed on, and periodic review to take corrective steps for better performance.
Psychological Appraisal Method of Performance Appraisal
It is one of the new methods of performance appraisal which is widely used by the organizations to assess the employee’s potential for the future performance instead of the past performance, by a psychologist. The psychologist conducts various psychological tests, in- depth interviews, discussions with the supervisors and considers reviews of other evaluations.
This appraisal technique is used to determine the emotional, intellectual, motivational and other concerned characteristics of an employee which are mandatory to predict his/her potential for the future performance.
360 Degree Appraisal
It is another staff appraisal method wherein the details of an employee’s performance are collected from other stakeholders which include the peers, superiors, colleagues and self. It is used to make the appraisal process more objective, participative, and transparent. It is called a 360 degree appraisal because it involves the persons above him, alongside him, below him as well as a self-appraisal to evaluate an employee’s performance.
720 Degree Appraisal
It is also one of the new methods of performance appraisal wherein the assessment is not only done by the stakeholders within the organization but also by the groups outside the organizations including the customers, suppliers, investors, etc. This is one of the methods which is used to determine the success of the organization as whole
All these modern methods of performance appraisal have a broader scope than any of the traditional method and provide a more comprehensive as well as accurate evaluation of a candidate. Amongst all these appraisal techniques, organizations can choose which one will be the best performance appraisal methods for them to identify the performance of their employees.
11.4 Keywords:
Performance Appraisal: A performance appraisal is a regular review of an employee's job performance and overall contribution to a company.
Assessment: the action of assessing someone or something.
Rating scale: Rating scale is defined as a closed-ended survey question used to represent respondent feedback in a comparative form for specific particular features/products/services Employees: a person employed for wages or salary, especially at non-executive level.
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11.5 Self-Assessment Questions:
1. Define Performance Appraisal
2. Explain the process of performance appraisal?
3. Bring out the various traditional methods of performance appraisal in tourism sector
4. Bring out the various modern methods of performance appraisal in tourism sector
11.6 Further readings:
1. Noe, Hollenbek-Fundamentals of Human resource Management, 7th Edition, Mc Graw Hill.
2. K.Aswathappa- Human Resource Management 8th edition Mc Graw Hill 3. Tanuja Agarwala- Strategic Human Resource Management, Oxford Publication 4. P.Subba Rao-Essentials of Human Resource Management and Industrial Relations,
Himalaya Publishing
5. P.Subba Rao, Sohnlal Somani- Human Resource Management, Himalaya Publishing
Lesson Writer Sri I. Satyanarayana Raju
Acharya Nagarjuna University 12.1 Centre for Distance Education
Lesson – 12