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Directions: Study the following questions carefully and answers the questions given below:
Important for :
Which of the following is/are drawback/s of performance appraisal using a Confidential Report?

I. It is descriptive in nature.
II. It follows a subjective appraisal system.
III. There is no feedback offered to the employee.
IV. It is based on old data pertaining to past performance.
» Explain it
Being descriptive is not a drawback. Also, there is no data used in a CR.

Thus, only II and III are correct.

Hence, option B is correct.
Which of the following /are advantage/s of performance appraisal using the essay method?

I. It can be used as only a standalone technique.
II. It provides a lot of information about the employee.
III. It gives a list of traits the employee is supposed to have.
» Explain it
The essay technique is a non quantitative technique used to express the positives and negatives of an employee. It is better when combined with the graphic rating scale. A lot of factors are considered while writing the essay and thus provides a lot of information on the employee.

I and III are incorrect while II is correct.

Hence, option B is correct.
Which of the following is/are true of performance appraisal using the critical incident technique?

I. It is objective and avoids recency bias.
II. It is mostly used for evaluation of superiors more than peers or subordinates.
III. The recorded events comprise of major incidents during the period being considered.
» Explain it
Critical incident technique is where the supervisor prepares a list of ‘critical’ incidents during a time period where the employee behaved either badly or was extremely good. Thus, a log is maintained which is then used to evaluate the employee at the end of the period.  This method is objective and takes into consideration all events, thus avoiding the recency bias. It is mostly used to evaluate superiors rather than peers or subordinates.

Hence, option E is correct.
Which of the following is a limitation of the checklist method of performance appraisal?

I. It is a time consuming method.
II. It suffers from the halo effect (bias).
III. It is an expensive method.
IV. The weights assigned may be biased in favor of negative questions or vice versa.
» Explain it
Checklist Method: A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behaviour. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others.


– The rater may be biased in distinguishing the positive and negative questions.

– He may assign biased weights to the questions.

– Another limitation could be that this method is expensive and time consuming.

– It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee’s characteristics, contributions and behaviours.

Hence, option B is correct.
» Explain it
BARS stands for Behaviorally Anchored Ratings Scales and is one of the most widely used methods for appraising performance.

Hence, option A is correct.