The techniques for appraising performance include:
A. Graphic Rating Scale Method
B. Potential Method
C. Alternation Ranking Method
D. Diversity Counts
E. Paired Comparison Method
Choose the correct answer from the options given below:

Correct option is D

Performance appraisal is the systematic evaluation of employees based on their performance, potential, and behavior in the workplace. Various methods are used to assess employees effectively. The correct answer consists of Graphic Rating Scale Method (A), Alternation Ranking Method (C), and Paired Comparison Method (E), as these are established techniques in performance appraisal.

1. Graphic Rating Scale Method (A):

   • This is one of the most commonly used appraisal methods where employees are rated on specific traits (e.g., quality of work, punctuality) using a scale (e.g., 1 to 5 or Poor to Excellent).

   • Example: An employee may be rated from 1 to 5 based on teamwork, initiative, and productivity.

2. Alternation Ranking Method (C):

   • In this method, employees are ranked from best to worst based on a specific trait or overall performance. It helps in identifying high-performing and low-performing employees.

   • Example: A manager lists the best performer first, the worst last, and continues ranking alternates.

3. Paired Comparison Method (E):

   • Employees are compared with each other in pairs based on performance, and a ranking is developed based on the number of times an individual is rated better than another.

   • Example: If there are 5 employees (A, B, C, D, E), each is compared with the other 4 to determine the best performer.

Thus, A (Graphic Rating Scale), C (Alternation Ranking), and E (Paired Comparison) are valid performance appraisal techniques.

Information Booster:

Performance appraisal techniques help organizations:

• Assess employee effectiveness and identify areas of improvement.

• Make informed decisions regarding promotions, training, and rewards.

• Increase fairness and motivation by recognizing employees' contributions.

• Improve workforce management by tracking employee progress.

Other Common Performance Appraisal Methods:

• 360-Degree Feedback: Employees receive performance feedback from peers, subordinates, and managers.
• Management by Objectives (MBO): Employees are appraised based on achieving specific, measurable goals.
• Behaviorally Anchored Rating Scales (BARS): A performance rating system using behavioral examples for each rating.

Additional Knowledge:

1. Potential Method (B) - Not a standard performance appraisal technique

   • This method evaluates an employee’s future potential rather than current performance. It is commonly used in talent management and succession planning rather than standard appraisals.

   • Example: A company assesses an employee’s leadership potential for future promotion rather than their current work output.

2. Diversity Counts (D) - Not a performance appraisal technique

   • Diversity Counts focuses on measuring diversity and inclusion metrics within an organization. It is used for HR and compliance purposes rather than evaluating individual employee performance.

   • Example: An organization tracks gender, ethnicity, and inclusion efforts but does not use this to measure an individual’s work performance.

Since B (Potential Method) and D (Diversity Counts) are not standard performance appraisal techniques, they are incorrect options.