Directorate of distance education master of business administration

Methods of Performance Appraisal
Time – honoured methods 
For a long time, the following methods were used:
a) 
Ranking method 
b) 
Paired comparison
c) 
Grading 
d) 
Forced distribution method 
e) 
Forced choice method 
f) 
Checklist method 
g) 
Critical incidents methods 
h) 
Graphic scale method 
i) 
Essay method 
j) 
Field Review Method
In recent times the additional methods used are 
i.  Appraisal by results or objectives 
ii.  Behaviourally anchored rating scales (BARS)
iii.  Assessment centres
iv.  360-degree appraisal 

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Ranking Method 
Ranking is the oldest and simple method of appraisal in which 
a person is ranked against others on the basis of certain traits or 
characteristics.  This is very simple method when the number of persons 
to be ranked is small because ranking has to be given on the basis of traits 
which are not easily determinable, unlike marks in an examination.  The 
method has limited value for performance appraisal as the difference in 
ranks do not indicate absolute or equal differences of ability between 
individuals.