One of the rather tradinitional methods of performance measurement is the Balanced Scorecard . For a general overview about the application of the Balanced Scorecard please feel free to refer to my research paper: "The Balanced Scorecard and Beyond – Applying Theories of Performance Measurement, Employment and Rewards in Management Accounting Education". In the paper you can find further references. It was published in the International Research Journal of Management Sciences 4 (7), pp. 483-491 and thus can be used for referencing.
Paul
Article The Balanced Scorecard and Beyond – Applying Theories of Per...
There is no one appraisal method accepted by all organisations to measure their performance. Traditionally, appraisal methods can be divided into three categories, namely, absolute methods, relative methods and objective methods. Recently, appraisal methods have categorized into four groups, namely, comparative methods, absolute methods, goal setting, and direct indices.
I think the major difference between traditional and modern methods is that traditional methods focus on personal traits, on other hand, Modern Methods focus on job achievements.
In general i think there is no single appraisal method accepted and used by all organizations to measure their employee's performance, because Each method has its strengths and weaknesses.
PA methods can be divided into two categories i.e., traditional methods and modern methods. Methods developed by early times (with a longer history of usage) and have been adopted by various organizations even now can be called traditional methods. The methods developed in more recent years (with a relative short history of usage) are modern methods.
Examples of traditional methods include Graphic rating scales, Checklist, Multiple choice, Essay, Critical incidents, Paired comparison, Rank order, Alternative ranking, Forced distribution, and Point allocation.
Examples of modern methods include Self evaluation, MBO, BARS (Behaviourally Anchored Rating Scales), BOS (Behavioural Observation Scales), and Field review.
According to understanding, Graphic rating scales, MBO and Self evaluation are being used by organizations mostly.
A general principle of PA to be followed by organizations is: Apply the method of Graphic Rating Scales (GRS) for measuring traits, the method of Behaviour Observation Scales (BOS) for measuring behaviours, and the method of Management By Objectives (MBO) for assessing results.