Performance Appraisal- Meaning, definition, process, methods,essentials and problems.

iv. Paired Comparisons Method

  • In this method one employee’s performance is compared with that of the other employees. Two employees are taken at a time and a decision is made on who is more competent. Then another pair is compared and the same process is repeated until all are compared and ranked.
  • The number of times   an  employee is judged   better   than  the  other   determines  his
  • Comparison is made on the basis  of overall performance.  The number  of comparisons to be made   can  be  decided  on  the  basis   of the  following formula:


Where N is the number of persons to be compared. The method is illustrated below:


B C D E Final Rank


+ + 3


+ + + 2


+ + + +


D +




  • Herein, plus (+)   sign  implies  the  employee is  considered  better   and  minus   (-) sign means   worse   than  the  other   employee in the    C gets  the  highest number  of plus  signs,   therefore,  his  rank   is  the  highest and  so on.
  • It is not suitable for large organizations as it becomes very cumbersome to compare large number of employees.

v. Forced Distribution Method

  • In this technique,   the  rater   is required   to distribute  his ratings  in the form of a normal frequency distribution.
  • The purpose is  to eliminate  the rater’s   bias  of central
  • Appraisers have to choose from among groups of statements those which best describes the employee and those which least describes him.
  • The statements are then weighted or scored. People with high scores are the better employees those with low scores are the marginal ones.
  • Since rater does not know what the scoring weights for each statements are , he cannot play favourites.

vi. Graphic Rating Scales

  • Typically, a graphic scale assesses an employee on a rating scale comprising lists of traits and a range of performance values for each trait.
  • Rating scale can be continuous, where degree of traits are measured in numbers say (1,2,3 and 4) scale and/or discontinuous say outstanding, above average, average or unsatisfactory.
  • The approach is multi-dimensional as several significant dimensions of the job can be considered in evaluation.
  • In practice, ratings tend to cluster on the high side. A supervisor often tends to rate his subordinates high to avoid criticism from them. To minimize this bias, the rater may be asked to give reasons to justify his rating.

vii. Checklist Method

  • A checklist is a list of statements that describe the characteristics and performance of employees on the job.
  • The rater checks to indicated if the behavior of an employee is positive or negative to each statement.
  • There are three types of checklists that can be used:

a) Simple Checklist – equal importance is given to each statement.

b) Weighted Checklist – weights are assigned to different statements.

c) Forced Choice Checklist – five statements are given for each trait.

Performance Appraisal- Meaning, definition, process, methods,essentials and problems.

2 thoughts on “Performance Appraisal- Meaning, definition, process, methods,essentials and problems.

    1. Please visit Entrance Exam Section on our website. We have uploaded notes and MCQS on HRM for first three units.Soon will be uploading rest of the units.

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