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

Critical Incidence Method
In this method, only critical incidents and behaviour associated with these
incidents are taken for evaluation. This method involves three steps. A test of noteworthy
on the job behaviour (good or bad) is prepared. A group of experts then assigns scale
values depending on the degree of desirability for the job. Finally, a check list of incidents
which define good and bad employees is prepared. The rater is given this checklist for
rating. The basic idea behind this rating is to appraise the people who can do well in
critical situations because in normal situation most employees work alike. This method is
useful to find potential employees who can be useful in critical situation.
Graphic Scale Method
Graphic scale is also known as linear rating scale. This is most commonly used
method of performance appraisal. In this method, a printed appraisal form is used for each
appraises. The form contains various employee characteristics and his job performance.
Various characteristics are, leadership, dependability, cooperativeness, enthusiasm,
creativity, analytical ability, decisiveness, emotional maturity etc., depending on the level
of the employee. Job performance includes quantity and quality of work performance,
specific targets achieved, regularity of attendance etc. The degree of quality may be
measured on three point or five point scale. On five point scale, ‘excellent, very good,
average, poor or very poor’ may be grading.
Essay Method
Instead of using structured forms for performance appraisal, some companies use
free essay method. In essay method rater assesses the employees on certain parameters in
his own word. Such parameters may be
1. Work performance in terms of quality, quantity and costs.
2. Knowledge about the job
3. Knowledge about organizational policies, procedures and rules,
4. Employee’s characteristics and behaviour
5. Employee’s strength and weakness
6. Overall suitability of the employee;
7. Employee’s potentiality
8. Training and development needs of the employee