Modern Performance Appraisal Methods

Modern Performance Appraisal Methods Performance appraisal methods are basically of two types – traditional methods and modern methods. Each method has advantages and disadvantages and different methods are found suitable to different organizations. There is not a single method for performance appraisal that is unique and suitable to assess the performance of employees of any organization. The classification by De Cenzo and Robins created three types of performance appraisal methods – absolute, relative and objective.

Another classification of the appraisal methods brought two categories – past-oriented and future-oriented. The appraisal methods are also classified into six categories – rating scales, comparison, critical incidents, essay, MBO and combination. The classification of performance appraisal methods into two categories – traditional and modern – is used more widely. This classification was made by Strauss and Sayles. While the modern methods emphasize on evaluation of the results achieved by the employee in his job, the traditional methods give importance to rating of the employee’s personal traits like creativity, reliability, initiative, intelligence, leadership qualities and integrity. The modern methods are considered as more objective.

Modern Methods For Performance Appraisal 1.

Management By Objectives (MBO)

In the MBO method, the manager sets common goals with each of his subordinates and discusses with the subordinates periodically the progress made. Though MBO is a method for evaluation of performance, this method is not for that purpose alone. In this method the manager and his subordinates sit together, plan, organize, discuss, argue and control. The main drawback of MBO method is that the objectives are not clear and cannot be measured. Another disadvantage of this method is that since this method consists of four steps – setting the goal, performance standard, comparison – it consumes much time. When the manager tries to set higher goals the subordinates try for a lower goal. As a result of this, unrealistic goals are set. When the human resource management software India prefers external controls, MBO method for performance appraisal becomes ineffective.

2.

BARS (Behaviorally Anchored Rating Scales)

The BARS method is considered as a better method for performance appraisal when compared to the traditional methods. There is consistency in this type of evaluation. This method provides better feedback, clear standards and correct gauge. However, this method also has limitations. The distortion of rating scales affects the accuracy of this method.

3.

Assessment Centres

The Assessment Centres are used to assess the executive capability of the employees. The managers come together at the centres and participate in various exercises that are specially designed and organized. The performance of the managers will be assessed by the senior managers.

Psychologists and HR specialists assist the senior managers in the

assessment process. The exercises include in-basket tasks, work groups, role playing and simulations. The feedbacks about strengths and weaknesses are provided to the participants at the end of the program. The advantages of this method are that the evaluation will be more accurate, less chance for biasedness, ensures right selection and right promotion, etc. This method also has a few limitations. The process is highly expensive as well as time-consuming. The method will cause suffocation to those who perform well and will be demeaning for those who put poor performance. This method will cause unhealthy competition among the managers and will adversely affect those who are not called to the Assessment Centre.

The concept of Assessment Centres as a method for performance appraisal was introduced in India recently and many leading corporate firms have adopted this method for performance evaluation.

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