Modern Performance Appraisal Techniques
1. Appraisal by Results or Objectives
1. Appraisal by Results or Objectives
One of the most promising tools of appraisal of employees, particularly at managerial level, is the system of evaluation of managerial performance against the setting and accomplishing of verifiable objectives. The basic idea is that the organization is concerned with the achievement of objectives through the contributions of individuals rather than on the basis of their traits. It draws its roots from management by objectives.
2. Behaviorally Anchored Rating Scales (BARS)
The dissatisfaction with traditional judgmental techniques used for performance appraisal has led an increasing number of organizations to move towards behaviorally based techniques around 1960s. At the initial stage, some behaviorally oriented techniques like Behavioral Expectancy Scales (BES) were
developed which were replaced by the more refined scales known as behaviorally anchored rating scales (BARS). Bars approach gets away from measuring subjective personal traits and instead measures observable, critical behaviors that are related to specific job dimensions. Various steps involved in developing BARS are as follows:
1. Identification of Performance Measures: The outcome of the effective job performance is identified by knowledgeable people, viz., superiors, jobholders and HR personnel or combination of them. They identify the important dimensions of the job.
2. Identification of Critical Behaviors: The behavior which is essential for the effective performance of job is a critical behavior. They are generated from different dimensions of the job and related to various critical incidents of the job.
3. Re-translation of Critical Behaviors: Critical behaviors identified are re-translated by a different group of personnel. In this process, critical behaviors are classified into clusters and those approved by majority are kept for further development and others discarded. The idea is to keep the behaviors into a manageable limit. It ensures reliability.
4. Scaling of Critical Behaviors: The critical behaviors as identified above are given scales in numbers with their description. It may range from 1 to 9 demonstrating the perceived level of performance. The value of scale is determined on the basis of estimates provided during the re-translation process.
5. Development of the BARS Instrument: The result of arranging scales for different dimensions of the job (Known as behavior anchors) produces a vertical scale for each dimension. It is used for performance appraisal.
3. Assessment Centers
The concept of assessment centers was initially applied to military situations in the German army in 1930's and the War office selection Board of the British army in 1960's. From the army, this concept traveled to business filed during 1960's. an assessment center is a central location where managers come together and participate in a number of simulated exercises, on the basis of which they are evaluated by panel or raters. The evaluation process goes through
2-3days. The Task Force on Development of Assessment Center Standards has recommended that a technique can be considered as assessment center only if it meets the following requirements.
1. Multiple assessment techniques must be used and at least one of these techniques must be a simulation.
2. Multiple trained assessors must be used.
3. Judgements must be based on pooled information from all assessors.
4. Evaluation must be made at a time separate from the observation of behavior.
5. Simulation exercises used in this method should first be tested for their reliability, validity and objectivity.
6. The dimensions, attributes, characteristics, or qualities evaluated by the programme must be determined by an analysis of relevant job behavior
4. 360-Degree Appraisal
Another method which can be used to appraise the performance of an employee is to use 360-degree appraisal. First developed and used in a more formal way by General Electric Company of USA in 1992, this method has attracted attention of many more companies. 360-degree appraisal is the process of systematically gathering data on a person's skills, abilities and behaviors from a variety of sources-the manager peers, subordinates and even customers and clients. In 360-degree appraisal, besides appraising the performance of the assesses, his other attributes such as talents, behavior, values, and technical considerations are also appraised.
by: Abey Francis
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