Appraisal systems are increasingly being used to measure performance within organizations. Required; Describe the following approaches to measurement used in performance appraisal systems:classification; factor comparison and points rating

Approaches to measurement used in appraisal systems are based either on an analysis of the whole job, or on the sub division of a job.

CLASSIFICATION:
Involves evaluating the whole job. Firstly, decisions are made on what grades there will be (A B C). Then a decision is made on where each job fits into the organisation. This method requires particular knowledge and is subjective.

FACTOR COMPARISON:

This method involves sub-dividing the job to be evaluated. Qualitative factors such as technical knowledge and responsibility are selected and given a financial value in pounds. Each factor in each job is then evaluated as a percentage of the financial value. A simple, unscientific method. Does not suit office type jobs.

POINTS RATING:
Probably the most scientific method. Different schemes involve either evaluation of the whole job or sub division of a job. Again, qualities required (skill, responsibility etc) are listed. Each job is divided into between eight and twelve such qualities. Points are allocated to each factor and added to give a total score. This is a flexible, reasonably fair, and most used system.
A derivative of this method is associated with HAY MSL. This is a form of points rating based scheme, but is based on three fundamental measurements ñ understanding, problem solving and accountability. Each is sub-divided in turn for points allocation along the lines of the points rating system.
Widely regarded as a fair and reasonably scientific system, the HAY system has been widely used for appraisal systems involving higher management.



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