There are several basic techniques managers use for appraising the performance of employees. Discuss these Techniques.


CSS Solved Business Administration Past Papers | There are several basic techniques managers use for appraising the performance of employees. Discuss these Techniques.

The following question is attempted by Miss Nimra Masood, the top scorer in CSS Business Administration papers. Moreover, the answer is written on the same pattern, taught by Sir to his students, scoring the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.

Topic Breakdown:
Human Resource Management is one section of Business Management.  CSS examiner have given considerable weightage to Performance Appraisal; therefore, students cannot ignore this area if they want maximum marks in paper.
Subject: Human Resource Manager
Topic: Performance Appraisal


Human resource management is divided into four broad areas: Planning, Recruiting, Training and Appraisal. To deliver goods and services company requires human resource. Individuals work for the organization to gain personal benefits; monetary or non monetary. Thus companies look forward to different performance appraisal methods to get most out of their available human resource. Compensations and benefits are tools used by companies to motivate their human resource to achieve performance targets.

Definition of Performance Appraisal:

“ Performance Appraisal is the Process through which managers ensure that employee activities and output are congruent with the organizational goals”


“It is the process through which an organization gets information on how well an employee is doing his or her job.”

Performance Appraisal:

Employees are an integral part of every organization. It is human resources that make, implement and deliver policies and strategies of every organization. Performance appraisal is about giving employees feedback about their performance. Performance appraisal helps identify loopholes and achievements in performances of individuals. There are many ways in which performance appraisal is done. Each way has its own benefits and drawbacks.

Criteria for Evaluating Performance:

This is the most critical part in developing the performance appraisal system. The criteria should be clear precise and relevant to get the desired outcomes.

  • Validity:
    It is the extent to which the process measures what it is intended to measure. Meaning that the result can be interpreted and used for intended purpose
  • Reliability:
    The degree to which the appraisal results are consistent with the previous results.
  • Acceptability:
    It will the criteria be acceptable to the employee who is to be evaluated.
  • Cost:
    Another factor is the cost involved in conducting the appraisal.
  • Specificity:
    It wills the appraisal method measure what it is intended to measure.

Performance Appraisal Techniques:

  1. Comparative method:

This method compares the performance and output of employees working on a similar rank with same tasks and duties.

  • Ranking:
    It is the simplest method in which employees are rated from highest to lowest performer.
  • Forced Distribution:
    The rater is asked to assign individuals into workgroups with limited number of categories.
  • Paired Comparison:
    Manager compares every employee with every other employee in the work group
  1. Attribute Approach Method:

This approach follows the attribute and characteristics model.

  • Graphic Rating Scale:
    A list of traits is evaluated on a five point rating scale.
  • Mixed Standard Scale:
    Define relevant performance dimensions and then develop statements representing good, average and poor performance along each dimension
  • Essay:
    Rater simply writes a brief narrative describing the employee performance.
  • Forced Choice:
    Appraiser is given a series of statements about an individual and the rater in turn indicates which items are most or least descriptive of the employee.
  1. Behavioural Approach:
  • Critical Incident:
    It requires that a manager keeps record of specific examples of effective and ineffective performance.
  • Behaviorally Anchored Rating Scale:
    It combines elements of traditional rating scale and critical incident method
  • Assessment Center:
    Many evaluators judge an employee performance on a number of dimensions.
  • Behavioral Observational Scale:
    It measures the number of employee has demonstrated effective behavior on the job. The appraiser may use more than one criteria to judge the behavior of employee.
  1. Result Approach Method:
  • Management by Objectives:
    Top management defines goals for the employees that must be achieved for performance appraisal. The amount of targets achieved is the criteria to judge performance.
  • Productivity Measurement and Evaluation System:
    Certain goals are set for performance appraisal. Employees are motivated to achieve these targets so that they could get good appraisal.
  • Quality Approach:
    The emphasis is on both behavioral and systematic factors to measure performance. Manager and employee both collaborate with each other to solve performance issues. Multiple sources are utilized and standard is set by both internal and external standards. A few examples of quality approach are process-flow analysis, scatter gram, pareto charts and cause and effect diagram.


To conclude there are various approaches to performance appraisal, each has its own benefits and drawbacks. With innovation and technology the appraisal process has continued to evolve filling in many loopholes. Most effective of the techniques is result-based approach. This technique takes in to account different dimensions that could influence performance of an employee. But there is stillroom for improvement to ensure that the appraisal depicts true picture of employee performance.

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