This document discusses and compares past-oriented and future-oriented methods of performance appraisal. Past-oriented methods include rating scales, checklists, forced choice, forced distribution, critical incidents, behaviorally anchored scales, and confidential records. Future-oriented methods include management by objectives, psychological appraisals, assessment centers, 360 degree feedback, rating committees, and self-appraisal. Specific details are provided about how several of these methods are implemented.

1. Performance Appraisal Methods
Categorized as
 Past Oriented Methods
Future Oriented Methods
Past Oriented Methods consists of:
 Rating Scales
 Checklists
 Forced Choice Method
 Forced Distribution Method
Critical Incidents Method
 Behaviorally Anchored Scales
 Confidential Records
 Performance tests and Observation

2. Performance Appraisal Methods Cont..
Rating Scales
Consists of numerical scale which represents performance criteria like dependability,
initiative, output, attendance, attitude, cooperation which can be rated from excellent
to poor
Checklists
Similar to questionnaires, checklists consists of statements based on the traits of the
employee and his job, which is prepared into two columns - ‘Yes’ and ‘No’
Total score depends on the no: of ‘Yes’
Sometimes points are being assigned to ‘Yes’ and ‘No’; which is called weighed
checklist
Forced Choice Method
Here rater is expected to select a given statement that describe the ratee and actual
assessment is done by HR department

3. Performance Appraisal Methods Cont..
Forced Distribution Method
Here the rater distributes the employee performance on a normal distribution curve
Employee performance are being rated as excellent, good, average, below average,
unsatisfactory
Critical Incidents Method
Method of assessment of employee based on some critical incidents which might
happen regularly are recorded by superiors
Behaviorally Anchored Scales
Here the employee behavior at work are assessed on scales which is rated as
extremely good, slightly good, Neither poor nor good, slightly poor, poor, extremely
poor
Confidential Records
Applicable in assessing Government employees performance considering their
attendance, self expression ability to do work, leadership, initiative, Job knowledge,
reasoning ability, judgment, integrity, responsibility on a four point scale ( Excellent,
Good, Fair, Poor)

4. Performance Appraisal Methods Cont..
Future Oriented Methods consists of:
 Management by Objectives
 Psychological Appraisals
 Assessment Centers
 360 Degree system of Appraisal
 Rating Committees
 Self Appraisal

5. Performance Appraisal Methods Cont..
Management by Objectives
Psychological Appraisals
Applicable to large organization, where full time industrial psychologists are available
Appraisal consists of in-depth interviews, psychological tests, discussion with
supervisors, review of other evaluation
Psychologists assess employees intellectual, emotional, motivational and work related
characteristics
Assessment Centers
Used for evaluating executive potential
Referred as a central location where managers may come together to have participation in
job related exercises evaluated by trained observers

6. Performance Appraisal Methods Cont..
360 Degree system of Appraisal
Defined as the process of assessing the performance of employees by utilizing the service
of superiors, peers, self and customers/suppliers
Developed by General Electric
Practiced in Reliance Industries, Crompton Greaves, Godrej soaps, Wipro, Infosys
Rating Committees
Represents a group consists of immediate supervisor and three or four supervisors which
have regular contact with the employee
Self Appraisal
Process of evaluating performance of employees by himself/herself
Practiced in ITI (Indian Telephone Industries), Texas Instruments

7. Performance Appraisal Methods Cont..
360 Degree system of Appraisal
Defined as the process of assessing the performance of employees by utilizing the service
of superiors, peers, self and customers/suppliers
Developed by General Electric
Practiced in Reliance Industries, Crompton Greaves, Godrej soaps, Wipro, Infosys
Rating Committees
Represents a group consists of immediate supervisor and three or four supervisors which
have regular contact with the employee
Self Appraisal
Process of evaluating performance of employees by himself/herself
Practiced in ITI (Indian Telephone Industries), Texas Instruments