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6.4 Methods, techniques and tools
Several methods and techniques are available for measuring the performance of an employee. The methods and scales differ for various reasons. First, they differ in the sources of traits or qualities to be appraised. The qualities may differ because of difference in job requirements, statistical requirements and the opinion of the management. Second, they differ because of the different kinds of workers, viz., factory workers, executives or salespeople. Third, the variations may be caused by the degree of precision attempted in evaluation. Finally, they may differ because of the methods used to obtain weight for various traits.
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The traditional methods of performance appraisal lay emphasis on the rating of the individual’s personality traits, such as initiative, dependability, drive, responsibility, creativity, integrity, leadership potential, intelligence, judgment, organizing ability etc. On the other hand, modern methods lay more emphasis on the evaluation of work results – job achievements – than on personality traits. Result-oriented appraisals tend to be more objective and worthwhile, especially for counseling and development purposes.
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Methods of Performance Appraisal
6.4.1 Traditional Methods
• Straight Ranking method: It is the oldest and simplest method of performance appraisal by which an employee and his performance are considered as an entity by the evaluator. The relative position of each employee is tested in terms of his/her numerical rank. It may also be done by ranking a person on his/her job performance against that of another member of a competitive group by placing him/her as number one or two or three in the total group i.e. persons are tested in order of merit and placed in simple grouping. But this method has its limitations. Firstly, it is very difficult to compare a single individual with human beings having varying behaviour traits. Secondly, this method only tells us how a person stands in relation to the others in the group, but does not indicate how much better or worse he/she is than another. Thirdly, the task of ranking is difficult when a large number of persons are rated. Fourthly, the ranking system does not eliminate snap judgments, nor does it provide us with a systematic procedure for determining the relative ranks of subordinates.
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• Person-to-person Comparison Method: By this method certain factors are selected for the purpose of analysis (such as leadership, dependability and initiative) and scale is designed by the rater for each factor. A scale of a person is also created for each selected factor. Then each person to be rated is compared with the person in the scale, and certain scores for each factor are awarded to him/her. This method is not of much use because the designing of scales is a complicated task.
• Grading Method: Under this system, the rater considers features and marks them accordingly to a scale. Certain categories of worth are first established and carefully defined. The selected features may be analytical ability, cooperativeness, dependability, self-expression, job knowledge, judgment, leadership and organizing ability etc. The rating scale may be: A – Outstanding; B – Very Good; C – Good or Average; D – Fair; E – Poor. The actual performance of an employee is then compared with these grade definitions and he/
she is allotted the grade which best describes his/her performance. Such type of grading is usually done in the selection of candidates by the Public Service Commissions.
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• Graphic or Linear Rating Scale: This is the most commonly used method of performance appraisal. A printed form is used for each person to be rated. The factors to be rated are: employee characteristics and employee contribution. In employee characteristics are included qualities such as initiative, leadership, cooperativeness, dependability,
industriousness, attitude, enthusiasm, loyalty, creative ability, decisiveness, analytical ability, emotional ability and coordination. In employee contribution are included the quantity and quality of work, the responsibility assumed, specific goals achieved, regularity of attendance, leadership offered, attitude towards superiors and associates, versatility etc. These traits are then evaluated on a continuous scale wherein the rater places a mark somewhere along a continuum.
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However, this method suffers from serious disadvantage for it is arbitrary and the rating is generally subjective. Another limitation is that it assumes that each characteristic is equally important for all jobs.
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• Forced Choice Description Method: Under this method, the rating elements are several sets of pair phrases or adjectives (usually sets of 4 phrases, two of which are positive, two negative) relating to job proficiency or personal qualifications. The evaluator is asked to indicate which of the four phrases is the most and least descriptive of the employee.
The following statements are illustrative of the type of statements that are used:
a) Organizes work well.
b) Lacks the ability to make people feel at ease.
c) Makes little effort.
d) Has a cool, even temperament.
e) Is dishonest and disloyal.
f) Is over-bearing and disinterested in work.
g) Is a hard worker and cooperative.
Two of the above phrases are favourable terms while two are unfavourable. The others are further examples. The favourable terms earn a credit, while unfavourable terms get no credit. The employee also gets plus credit if one of the negative phrases is checked as being the least characteristic.
However, the results of evaluation do not prove useful for counseling and training purposes because the evaluator is ignorant of how he/she is evaluating the individual.
• Forced Distribution Method: This method requires the rater to appraise an employee according to a pre-determined distribution scale. It is assumed that it is possible and desirable to rate only two factors, viz., job performance and chances for promotion. For this purpose, a 5-point performance scale is used without any descriptive statement. Employees are placed between the two extremes of ‘good’ and ‘bad’ job performances.
For example:
Top 10% – Outstanding
Next 20% – Above Average
Next 40% – Average/Good
Next 20% – Fair
Next 10% – Below Average/Poor
In addition to job performance, employees are rated for chances of promotion. A 3-point scale is often used for this purpose:
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a) Very likely promotional material.
b) May or may not be promotional material.
c) Very unlikely to be promotional material.
Though this method is very simple to understand and very easy to apply in an organization, its use in wage administration leads to low morale and low productivity.
• Check List: Under this method, the evaluator does not evaluate employee performance. He/
she supplies reports about it and the final rating is done by the HR department. A series of questions are presented concerning an employee’s behaviour. The rater then checks to indicate if the answer to a question about an employee is positive or negative. The value of each question may be weighted equally or certain questions may be weighted more heavily than others. An example of check list is given below:
(1) Is the employee really interested in his/her job? Yes/No
(2) Is he/she regular in job? Yes/No
(3) Is he/she respected by his/her subordinates? Yes/No
(4) Does he/she show uniform behaviour to all? Yes/No
(5) Does he/she keep his temper? Yes/No
(6) Is he/she always willing to help other employees? Yes/No