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

There are several methods of performance appraisal. Some are traditional and a
few are modern and scientific. Under M.B.O, evaluation is done both by the superior and
the concerned employees.
Potential appraisal is needed to fill up future vacancies and to evaluate how many
of the employees have necessary skills and traits to occupy higher position and
responsibilities. Incidentally it will give feedback to employees to improve themselves for
future requirements.
Answer Key
1. Objectives – for effecting salary increase based on skill, to decide promotion,
to chart out training and development programmes, to render feedback to
employees to let know where they stand and to motivate the employees.
2. Explain the traditional methods and the methods is recent years. More accent
on i. appraisal by results, ii. BARS, and iii. 360 degree appraisal.
3. An assessment centre is a central location where managers come together and
participate in a number of simulated exercises on the basis of which they are
evaluated by a panel of raters.
4. Potential appraisal is for assessing the potentialities of existing employees for
higher positions and responsibilities. The feedback provided to employees
could help them to improve upon and shape for future positions.