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Important Advantages & Disadvantages of Appraisal Tools Tool
Advantages
Disadvantages
Graphic rating scale
Simple to use; provides a quantitative rating for each employee.
Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems.
BARS
Provides behavioural “anchors.” BARS is very accurate.
Difficult to develop.
Alternation ranking
Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales.
Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent.
Forced distribution method
End up with a predetermined number or % of people in each group.
Employees’ appraisal results depend on your choice of cutoff points.
Critical incident method
Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis.
Difficult to rate or rank employees relative to one another.
MBO
Tied to jointly agreed-upon performance objectives.
Time-consuming.
Dr. Pallavi srivastava
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