PERFORMANCE APPRAISAL

METHODS IN MANUFACTURING
INDUSTRY
Malisetty Mahesh and Jim Lee
Engineering and Technology
Management Program
University of Louisiana at Lafayette
OBJECTIVE
The objective of this paper is to review common
performance appraisal methods and identify the
best approach for manufacturing industries.
METHODOLOGY
A new appraisal system has been developed for
manufacturing industries by taking the
advantage of three common methods of
appraisal which are:
Comparative
Behavioral
Output based
COMPARATIVE APPRAISAL


The performance of the employees are
compared against one another.
1. Ranking
2. Paired comparison
3. Forced distribution
BEHAVIORAL APPRAISAL
It allows the supervisor to evaluate the
performance of the employees independent of
other employees but relative to important job-
related behavior, leading to job success.
1. Graphic rating scale
2. Checklist
3. Critical incident
4. BARS( Behaviorally Anchored Rating Scale)
OUTPUT BASED APPRAISAL
It focuses on job products as the final criteria.
The most common is MBO( Management by
Objective)
It specifies the goal that the individual has to
attain and also the appropriate amount of
time to achieve it.
The objective that each manager set is driven
by the overall goals and objectives of the
organization.
PROPOSED PERFORMANCE APPRAISAL APPROACH
Uses graphic rating scale, critical incidents, MBO and
checklist.
Like the graphic rating scales, the rater marks an
employees performance on a continuum i.e. on a five
point or seven point scale.
The checklist statements are on five-point or seven-point
scale like graphical rating scales.
Goals that have to be attained by the
employees/managers/top management in the next week
or for the next appraisal time are taken into consideration.
The critical incidents are noted for the varying behaviors
of the employee.
HIERARCHIAL STRUCTURE OF IMPLEMENTING
APPRAISAL APPROACH
Series of appraisal methods happening at all levels of management in a
company to achieve better results. The structure uses different
appraisal methods at different levels of management that suit
accordingly.
1. BOTTOM LEVEL MANAGEMENT:
Peer rating: checklist method best for evaluation.
Supervisor rating: Rating method good for small company and for
big companies, Forced Distribution is good.
2. MIDDLE LEVEL MANAGEMENT: consists of managers and
supervisors.
Supervisor rating: top level management evaluates the mangers
and supervisors.
Peer rating: the manager evaluate the fellow manager using
checklist method.
3. TOP LEVEL MANAGEMENT: consists of CEO,
MD,VP and general managers.
Self Appraisal: top level uses MBO at this
level.
Manager rating Supervisors: BARS is used.
Managers identifies the job dimension like
attitude of the supervisor toward manager to
evaluate.
Peer Rating: check list is used.


LEARNING

The researchers have developed an effective
performance appraisal method by using the
existing methods.
The paper also explains how different
methods should be used at different levels of
management to make the process of appraisal
more effective.

THANK YOU!!