Performance Appraisal Methods

Performance Appraisal Methods:

Performance Appraisal of the personnel is a universal practice. However, different methods of performance appraisal are in use in different countries. Different grading systems and different variables are used for assessing the quality and quantity of the work done by the personnel. In India, the following five-grade key has been adopted for assessing and recording the performance of the employees.

• Outstanding (Highest).
• Very good.
• Good.
• Fair.
• Poor (Lowest).

The assessment is made by several methods:

(1) Annual Confidential Report (ARC)- Individual performances of the employees are usually assessed on the basis of Annual Confidential Reports given by the superior about the working and abilities of his subordinates. He records in his report his observations about the performance of his subordinates. These reports are recorded in a set form. This form contains several entries which can determine the adequacy or inadequacy of the work done and the quality of the work done. It also has entries or heads for evaluating the general personality of the persons reported upon.

The ACR written by a superior reporting officer is evaluated by a “reviewing officer” and finally endorsed or counter-signed by the next higher officer. This ‘service record rating’ system based on ‘Annual Confidential Reports’ which accounts for the individual’s experience, previous contribution, personal history, personality traits, work assigned, work accomplished, potential, etc., has been accepted in almost all the countries for undertaking performance appraisal of the personnel.

(2) Service Rating-Method or Efficiency- Rating Method- To determine the employees’ efficiency, the ‘service-rating’ or ‘efficiency-rating” method is also used. There are two types of Service-Rating Systems in operation:

• Trait-Rating System.
• PROBST/Graphic System of Personality Inventory.

Trait-Rating System- In this system, personnel qualities like knowledge of work, aptitude, attitude towards others, job performance, etc., of the employee are rated as satisfactory/unsatisfactory or as below job requirement, normal or above job requirement.

PROBST/Graphic Rating System- In this method of performance appraisal, personality factors are given more importance. The following items are taken into consideration for assessing the personalities and potentials of the personnel:

• Number of days of absence.
• Reasons for remaining absent.
• Punctuality.
• Promptness.
• Quickness/smartness/laziness.
• Talkativeness.
• Gentle/blunt/outspoken.
• Accepts/shirks from taking responsibility.
• Obedience/disobedience.
• Reliable/unreliable.
• Personal appearance.
• Fitness for higher positions etc.

Service-Rating is done in several different ways. In advanced countries like the USA, this is done in a very systematic manner through the use of computers. In India, sometimes, the rating is done by awarding marks and sometimes grades, and different columns are specified for different qualities. In some other countries, empirical facts as well as the personal judgement of a superior regarding the performance of his subordinates are recorded for this type of performance appraisal.