Performance Appraisal

Topics: Ranking, Non-parametric statistics Pages: 3 (823 words) Published: May 1, 2013
Performance Appraisal Tools and Techniques
Following are the tools used by the organizations for Performance Appraisals of their employees.

Paired Comparison
Forced Distribution
Confidential Report
Essay Evaluation
Critical Incident
Graphic Rating Scale
Forced Choice Method
Field Review Technique
Performance Test
We will be discussing the important performance appraisal tools and techniques in detail. Ranking Method
The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group.

Advantages of Ranking Method
Employees are ranked according to their performance levels.
It is easier to rank the best and the worst employee.
Limitations of Ranking Method
The “whole man” is compared with another “whole man” in this method. In practice, it is very difficult to compare individuals possessing various individual traits. This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. When a large number of employees are working, ranking of individuals become a difficult issue. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements. Forced Distribution method

This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (eg: superior, above average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the...
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