What Are The Different Methods Of Performance Appraisal?

Methods of Performance Appraisal

Brief Overview:

Performance appraisal is a process used by organizations to evaluate and measure employees’ job performance. There are several methods of performance appraisal that can be used to assess an employee’s strengths and areas for improvement.

  • 1. Graphic Rating Scales: This method involves evaluating employees based on specific criteria using a numerical scale.
  • 2. 360-Degree Feedback: This method gathers feedback from an employee’s peers, supervisors, subordinates, and customers to provide a comprehensive view of their performance.
  • 3. Management by Objectives (MBO): This method involves setting specific, measurable goals for employees and evaluating their performance based on their achievement of these goals.
  • 4. Behaviorally Anchored Rating Scales (BARS): This method combines elements of narrative and numerical ratings to assess employee performance based on specific behaviors.
  • 5. Critical Incident Technique: This method involves documenting specific examples of an employee’s behavior that demonstrate exceptional or poor performance.

Frequently Asked Questions:

1. What is the most commonly used method of performance appraisal?

Graphic Rating Scales are one of the most commonly used methods of performance appraisal due to their simplicity and ease of use.

2. How can 360-Degree Feedback benefit organizations?

360-Degree Feedback provides a comprehensive view of an employee’s performance from multiple perspectives, helping organizations identify areas for development and improvement.

3. What is the main advantage of using Management by Objectives for performance appraisal?

The main advantage of MBO is that it aligns employee goals with organizational objectives, promoting goal clarity and accountability.

4. How does Behaviorally Anchored Rating Scales differ from other appraisal methods?

BARS combines narrative descriptions of behaviors with numerical ratings, providing a more detailed and specific assessment of employee performance.

5. What are the challenges of using the Critical Incident Technique for performance appraisal?

One challenge of the Critical Incident Technique is the potential for bias in selecting and documenting specific incidents, as well as the time and effort required to maintain detailed records.

6. How can organizations choose the most appropriate method of performance appraisal?

Organizations should consider factors such as their goals, culture, and resources when selecting a performance appraisal method that aligns with their needs and objectives.

7. How can performance appraisal methods be used to support employee development?

Performance appraisal methods can be used to identify areas for improvement and development opportunities for employees, helping them enhance their skills and performance over time.


There are various methods of performance appraisal available for organizations to assess and evaluate employee performance. Each method has its own advantages and challenges, and organizations should choose the most appropriate method based on their goals, culture, and resources.

Start using 360-degree feedback in your organization to gain valuable insights into employee performance and drive overall improvement. Get Started Now!