UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

method has limited value for performance appraisal as the difference in ranks do not
indicate absolute or equal differences of ability between individuals.
Paired comparison
Paired comparison method is a slight variation of ranking system. This method is
adopted for use in the large groups. In this method, each person is compared with other
persons taking only one at a time. Usually only trait, overall suitability to perform the job,
is considered. The rater puts a tick mark against the person whom he considered the better
of the two, and final ranking is determined by the number of times that person is judged
better than others.
Grading
This is a method where certain categories of abilities of performance are defined
well in advance. Persons are put in particular category depending on their traits and
characteristics. The categories may be outstanding, good, average, poor, very poor or may
be in terms of letter like A,B,C,D etc., with A indicating the best and D indicating the
worst.
The actual performance of the employees is measured against these grades. This
method is generally useful for promotion based on performance.
Forced Distribution Method
As there is a tendency to rank high many of the employees, forced distribution
method has been adopted. In this method, the appraiser is forced to appraise the appraisers
according to the pattern of a normal curve. The basic assumption in this method is that the
employee’s performance. Conforms to a normal statistical distribution. For example 10
percent of employees may be rated as excellent, 20 per cent as above average, 40 per cent
as average 20 per cent below average and 10 per cent as poor. The basic advantage of this
method is that it overcomes the problem of adopting a central tendency of rating most of
the employees to a point, particularly high or near high to appeaser them.
Forced – Choice Method
The forced – choice rating method contains a series of group statements and the
rater checks how effectively the statement describes each individual under evaluation.
Though both of them describe the characteristics of an employee, the rater is forced to tick
only one which appears to be more descriptive of the employee. Out of these two
statements, only one statement is considered for final analysis of rating. For example, a
rater may be given the following two statements.