Summary
Highlights
The video introduces two main classifications of performance appraisal methods: traditional and modern. It then delves into a detailed explanation of each.
Traditional methods covered include: Paired Comparison (comparing each employee with every other), Graphic Rating Scales (evaluating traits on a scale), Forced Choice (selecting statements describing employees without knowing weightages), Forced Distribution (assigning fixed percentages to categories like poor to excellent, though many companies have moved away from this due to lack of transparency), Checklist Method (using statements with yes/no/doubt options), Essay Evaluation (detailed written reports by superiors), Group Appraisal (evaluation by multiple evaluators), Critical Incidents (recording effective and ineffective behaviors), Field Review (HR expert interviews supervisors), Confidential Report (immediate superior's report), and Ranking Method (ordering employees from best to worst).
The first modern method discussed is Management By Objectives (MBO), which involves mutual agreement on goals and periodic performance reviews. Advantages include increased motivation and reduced role conflict. Examples of companies like GE and L&T using MBO are provided.
Assessment Centers systematically evaluate individuals for future growth using techniques like role-playing, in-basket tests, and leaderless group discussions. Jubilient Life Sciences is cited as an example.
Human Assets Accounting evaluates employees in terms of costs and contributions, measuring their monetary value. Behaviorally Anchored Rating Scales (BARS) are rating scales with specific behavioral statements, customized for each job to ensure accuracy and relevance.
Other methods include Appraisal by Peers (colleagues evaluating each other), Appraisal by Subordinates (juniors evaluating seniors), Psychological Appraisals (conducted by psychologists for personality assessment), Self-Evaluation (employees assessing their own performance), and 360-Degree Feedback (obtaining feedback from multiple sources like subordinates, peers, supervisors, and customers). HCL is an example of a company using 360-degree feedback.