3 main modem methods of Performance appraisal:

Some of the modem methods of performance appraisal that are gaining ground over the traditional methods are described below.

a) Assessment centers:

The assessment center technique is primarily designed to identify the managerial potential for future performance. Typically, the potential executive candidates from different departments are brought together into a common assessment center for 2- 3 days where there are given similar assignments to what they would be expected to handle at the higher positional level if they were promoted.


The judgment of these activities is pooled and ranked. This continuous observation of candidates gives a much better and comprehensive idea about their potential.

b) Behaviourally Anchored Rating Scales (BARS):

It is a comparatively recently developed technique in which the rating scale method and the critical incident approach are integrated. In this technique, the requirements for effective performance as well as the requirements or ineffective performance as identified are judged by specialists and these requirements are anchored at each end of a vertical bar.

The bar consists of a series of vertical scales. Each scale identifying each important dimension of job performance. Each bar is scaled, generally from 1 to 9, where 1 is the lowest rating for most ineffective performance and 9 is the highest rating for the most ineffective performance.


This rating is on a continuous basis, and identifies specific examples of job behaviours or critical incidents. The rater then scores the performance of each behaviour on the appraisal form.

c) MBO:

The result oriented method. Management by objectives is a result oriented
process, rather than activity- oriented, and is based on the premise that performance can best be measured by comparison of actual results to plans or expected results. This method basically consists of the following phases.

i) The superior and the subordinate get together and jointly discuss the objectives to be accomplished during a predetermined appraisal period and the performance standards needed to reach those objectives.


ii) During this appraisal period, continuous communication occurs between the supervisor and the subordinate for frequent discussion about problems and progresses and if any updating or modifications are needed either in the goals or the performance standards.

iii) At the end of the period, the actual results are compared with the pre-determined objectives to see if these have been met or not. If these have not been met, then the causes for the deviation are traced and established.

These causes are analysed to see if they were due to any uncontrollable factors, such as labour strike or market shifts. Based on this analysis the goals and the objectives agreed upon are set.

Because the objectives are set in advance and related to the job, the appraisal is also fundamentally job related, which can be more objective. Also the methods enhance feedback since there is a periodic review of problems, resources and methods to improve the utilisation of resources.