In this essay we are going to discuss the main types of appraisal method used in organisation and critically evaluate which ones are the most useful in practice, and also the discussion is included about the advantages a properly implemented appraisal system can bring to an organisation. Also, this essay is going to cover human resource development management by objective and training needs and analysis. 1. MAIN TYPES OF APPRAISAL METHODS USED IN ORGANISATION Appraisal is the judgement of an employee’s performance in a job, based on considerations other than productivity alone.
It is sometimes called merit rating, more frequently when its sole object is to discriminate between employees in granting increases in wages or salaries. All managers are constantly forming judgements of their subordinates and are in that sense continuously making appraisals, the term is, however, applied in personal management to a formal and systematic assessment made in a prescribed and uniform manner at a certain time. The principal uses of appraisals are: A to help a manager decide what increases of pay shall be given on grounds of merit
B to determine the future use of an employee e. g. whether the employee shall remain in his or her present job or be transferred, promoted, demoted or dismissed C to indicate training needs, i. e. areas of performances where improvements would occur if appropriate training could be given; D to motivate the employee to do better in his or her present job by giving the worker knowledge of results, recognition of merits and the opportunity to discuss work with his or her manager. Appraisal reviews are usually categorised into three types.
A Performance reviews, which analyse employees past successes and failures with a view to improving future performance. B Potential reviews, which assess subordinates suitability for promotion and further training C Reward reviews, fro determining pay rises. It is a well established principle that salary assessments should occur well after performance and potential reviews have been completed, for two reasons: i) performance reviews examine personal strengths and weaknesses in order to improve efficiency. If salary matters are discussed during these meetings, they might dominate the conversation
ii) ultimately salary levels are determined by market forces of supply and demand for labour. Stuff shortages could cause the firm to pay high wages quite independent of the objective worth of particular workers. Appraisal methods There are many kinds of appraisal schemes, though usually they are elaborations or variations on one of the following. Ranking, which requires the managers to rank sub ordinates in order of merit, usually on their total ability in the job but sometimes according to a few separate characteristics.
It is quite easy for a manager to use this method for a small number of subordinates, and usually quite close agreement about the rank order is found among various judges who know the subordinates well. It can be used to decide pay, and to some extent to determine future use but not to identify training needs or provide motivation. However, although it puts subordinates in order of merit it does not show how much better the first is than the last. Grading which allots employees into predetermined series of merit categories-usually five- on the basis of their total performance.
It works reasonably well for a homogeneous group of subordinates, and a fair agreement among ratters is usually obtained. There is however, a strong tendency for extremes to be avoided, i. e. very few subordinates are rated poor or exceptional. To overcome this, a forced distribution is sometimes used; managers are instructed to ensure that subordinates are put into the five categories in the following proportions, ensuring that the assessment of merit is distributed normally: Poor Below Average Average Above Average Exceptional
10% 20% 40% 20% 10% The forced distribution is, however an unsound method to use if the number of subordinates is below about 40. Grading has the same uses and limitations as ranking. The rating scale is by far the most common method of appraisal. It consists of a list of personal characteristics or factors against each of which is a scale usually of five points, for the manager to the mark his or her assessments of the subordinates. This method can be used for deciding pay, determining future use and indicating training needs.
It is rather difficult to use for motivating an employee, who may well be inclined to argue about the details of the rating rather than discuss the job constructively. The rating scale method is some ways rather dangerous because it gives a false impression of analysis and exactitude. If it is to be successful the managers who use it must be trained, and the factors included in it carefully considered. Some of the faults often found, and ways by which they can be reduced.
The open-ended method is a comparatively recent innovation, introduced because of dissatisfaction with rating scales. Instead of requiring a managers to assess a number or personal characteristics, not all equally relevant, the method emphasises the way the job is performed and expects the manager to write a few sentences about the subordinate rather than put tics in columns. The method has many varieties a common one being to ask the manager four questions about the subordinate.