Technic of Performance Appraisal
According to (Muraly, 1994 cited in
Mukherjee, 2012, p.140). Negative impact of favorable evaluation directly pave
the way for raising suspicions in the minds of the employees. The main goal of
the PA in organizations is to improve employee performance (Murphy and Cleveland,
1991 cited in Dijk and Schodl, 2015, p.716).
Performance Appraisal can be generally categorized into two groups: Traditional (Past oriented) methods and Modern (future oriented) methods. Other researchers have classified the existent methods to three groups; absolute standards, relative standards and objectives . (Turgut & Mert, 2014).
DIFFERENT TECHNIQUES OF PERFORMANCE APPRAISAL
Two types of measures are used in performance
appraisal: Objective measures, which are directly quantifiable and Subjective
measures which are not directly quantifiable.
Performance Appraisal can be broadly classified into two categories as Traditional Methods and Modern Methods (Turgut & Mert, 2014).
Traditional Methods
Traditional Methods are relatively older methods of
performance appraisals. This method is mainly based on studying the personal qualities
of the employees. It may include knowledge, initiative, loyalty, leadership and
judgment.
Ranking Method
In order to Dessler. (2011), ranking
method is mainly based on ranking of employees from best
to worst on a particular trait, choosing highest, then lowest, until all
ranked
Graphic Rating Scales
Paterson developed
a graphic scale
to provide the reliability, consistency
over time, usefulness
and practicality. Bradshaw
in 1931 discussed improvements to the graphic
rating scale that
included “behaviorism” to anchor the
scales and help better illustrate the trait. In 1972, Flynn told
that the five to nine scale points result in the highest quality of ratings. According to Dessler. (2011), Graphic Rating
Scale is a scale that lists a number of traits and a range of performance for
each. The employee is then rated by identifying the score that best describes
his or her level of performance for each trait.
Critical Incident Method
The Critical Incident Technique is defined as a set of
procedures designed to describe human behavior by collecting description of
events having special significance and meeting systematically defined criteria.
Identification of the critical incidents during task performance can be a individual
process or a mutual process between user and evaluator. According to (Dessler
et.al, 2011). Critical Incident method is keeping a record of
Checklist method - Performance
appraisal method that consist of a list of items, each of which describes a
characteristic of an organization or an event The attribute may or may not be
present, or it may be present to varying degrees measured on a simple scale, simply yes no method (Amin,
et al., 2015).
Modern Methods
Modern Methods were devised to improve the
traditional methods. It attempted to improve the shortcomings of the old
methods such as biasness, subjectivity.
Management by
Objectives
It comprises of three building blocks: object
formulation, execution process and performance feedback. the system approach to
MBO(SAMBO).SAMBO comprises seven elements: strategic planning and hierarchy of
objects, setting objectives, planning for action, implementation of MBO, control
and appraisal, subsystems, and organizational and management development
(Turgut and Mert, 2014).
Behaviorally
Anchored Rating Scale (BARS)
BARS were introduced by Smith and Kendall in 1963 with
the attention of researchers concerned with the issue of reliability and
validity of performance ratings. Behavioral anchor scales are more informative
than simple numbers. Behaviorally anchored performance dimensions can be operationally
and conceptually can be distinguished from one another. Rater will act as
observer not the judge. BARS help rater focus on specific desirable and
undesirable incidents of work behavior which can serve as examples in
discussing a rating. BARS use behavioral statements or concrete examples to
illustrate multiple levels of performance for each element of performance
(Turgut and Mert, 2014).
Humans Resource Accounting
The concept of human resource accounting was first
developed by Sir William Petty in 1691.But research into true human resource
accounting began in the 1960 by Rensis Likert. Prof. Flam holtz defines human
resource accounting for people as an organizational resource. The main theory
underlying the HRA is: The people are valuable resources of an organization or
enterprise, information on investment and value of human resource is useful for
decision making in the organization (Tambunan et al., 2022).
360-Degree Appraisal
“Feedback from multiple sources or ‘360 degree feedback’ is a performance appraisal approach that relies on the input of an employee’s superiors, colleagues, subordinates, sometimes customers, suppliers and/or spouses” (Yukl and Lepsinger, 1995).Many companies are combining various sources of performance appraisal information to career create multirater or 360-degree-appraisal and feedback system. 360-degree feedback is intended to provide employees with as accurate a view of their performance as possible by getting input from all angles. Supervisors, peers, subordinates, customers. Although a360-degree feedback can be useful for both developmental and administrative purposes, most companies start with an exclusive focus on development. Employees may be understandably nervous about the possibility of every one “ganging up” on them in their evaluations. For example, a Chicago company, allow managers and employees to develop performance plans, goals, and objectives, and then track their progress over time. Managers can see all of an employee’s goals and action steps on a single screen, and self-appraisals and multiple-rater reviews can be combined into a 360-degree format. After rating an employee’s performance on each goals, raters can provide summary comments in three in three categories(Snell, Bohlander,andVohra,2012).
In conclusion, each method has advantages and disadvantages which make appraisal method more precise and candid by using of several methods. In order to decision making and determining the best appraisal method, a question should be answered: “The best for what?” It means that the appraisal method should be achieve to which goal or measure which performance? Therefore the manager should determine organization’s goals, objectives and expectations of performance appraisal. Performance appraisal objectives are usually evaluating and nurturing. On the other hand, an effective appraisal method should be reliable, trustworthy and free of error. Moreover, it can be able to compare employees between them and organization’s parts (Jafari, Bourouni and Amiri, 2009,p.95).
List of references
Aggarwal, A. & Thakur, G.S.M. (2013) Techniques
of Performance Appraisal-A Review International Journal of Engineering and
Advanced Technology (IJEAT) Volume-2, (Issue-3) [online].Available at:https://www.researchgate.net/publication/264458875_Techniques_of_Performance_Appraisal-A_Review
[Accessed on 20th of November 2022]
Amin, M. R., Hossain, M.
M. & Islam, M. F., (2015). Evaluating the Effectiveness of Weighted
Checklist Method as a Tool of Employee Performance Appraisal: Evidence from Prime Bank Limited. 6(7).
Amstrong, M. (2009) ARMSTRONG’S HANDBOOK OF HUMAN
RESOURCE MANAGEMENT PRACTICE. 11th edn.[online].Available at: Armstrong's
Handbook of Human Resource Management Practice by Armstrong, Michael. - PDF
Drive [Accessed on 20th of November 2022]
Dijk, D. V. & Schodl, M. M. (2015) International
Encyclopedia of the Social & Behavioral Sciences (pp.716–721) 2nd edn.
Oxford, Elsevier [online] Available at: https://www.researchgate.net/publication/282613144_Performance_Appraisal_and_Evaluation [Accessed on 19th of November, 2022]
Dessler
and Gary, (2011) Human Resource
Management, 10th edn, Prentice
Hall
Jafari, M., Bourouni, A. and Amiri, R. H. (2009) 'A New Framework for Selection of the Best Performance Appraisal Method', European Journal of Social Sciences , 7(3) [online] Available at:https://www.researchgate.net/publication/228901398_A_new_framework_for_selection_of_the_best_performance_appraisal_method[Accessed on 19th of November, 2022].
Mukherjee, J. (2012) DESIGNING HUMAN RESOURCE MANAGEMENT SYSTEM
(p.140). SAGE, United Kingdom.
Snell, S., Bohlander, G. and Vohra, V.(2012) HUMAN RESOURCE MANAGEMENT A South-Asian perspective (pp. 322-323). Cengage, Dilhi.
Tambunan, T.S., Ginting, P., Sirojuzilam, S. and
Absah, Y. (2022). Analysis applicability of 360-degree feedback performance
appraisal as a new technique performance appraisal for civil servants. REVIEW
OF MANAGEMENT, ACCOUNTING, AND BUSINESS STUDIES, 1(2), pp.30–39.
doi:10.38043/revenue.v1i2.3645. [Online] Available at: https://www.researchgate.net/publication/363879133_Analysis_applicability_of_360-degree_feedback_performance_appraisal_as_a_new_technique_performance_appraisal_for_civil_servants?_iepl%5BgeneralViewId%5D=9af0mvYUhB2stBEqdXP1cDUL2dMgKZ5oO3pQ&_iepl%5Bcontexts%5D%5B0%5D=searchReact&_iepl%5BviewId%5D=061UxU9oa6WFcB11x8p34qwMvnbHNCw1fG2I&_iepl%5BsearchType%5D=publication&_iepl%5Bdata%5D%5BcountLessEqual20%5D=1&_iepl%5Bdata%5D%5BinteractedWithPosition2%5D=1&_iepl%5Bdata%5D%5BwithoutEnrichment%5D=1&_iepl%5Bposition%5D=2&_iepl%5BrgKey%5D=PB%3A363879133&_iepl%5BtargetEntityId%5D=PB%3A363879133&_iepl%5BinteractionType%5D=publicationTitle [Accessed on 19th November 2022].
Turgut, H. and Mert, I.S. (2014). Evaluation of
Performance Appraisal Methods through Appraisal Errors by Using Fuzzy VIKOR
Method. International Business Research, 7(10).
doi:10.5539/ibr.v7n10p170.[Online] Available at: https://www.researchgate.net/publication/259368087_Role_of_Fuzzy_Techniques_in_Performance_Appraisal_of_Teaching_Staff?enrichId=rgreq-10e8e55c5ef903321e94dbf418d80f7b-XXX&enrichSource=Y292ZXJQYWdlOzI1OTM2ODA4NztBUzoxMDI2NzE0NDQ4NzMyMjRAMTQwMTQ5MDE4ODYwMA%3D%3D&el=1_x_2&_esc=publicationCoverPdf [Accessed on 19th November 2022].
Winston and Creamer,(1997). Performance Appraisal. Available from:http://filebox.vt.edu/users/dgc2/staffinghandbook/performanceappraisalsingleunit.
Yukl, G and Lepsinger, R. (1995) . How to get the most
out of 360° feedback. Training, 32(12), pp.45-50.