Wages: "Wages" means all remuneration (whether by way of salary, allowances, otherwise) expressed in terms of money or capable of being expressed which would, if…

Compensation: It is what employees receive in exchange for their contribution to the organization.

360 degree feedback: Information is gathered from a variety of sources in this system, including subordinates who complete performance appraisals, then the results are summarized…

Paired comparison: A method that compels raters to compare each employee with all other employees who are being rated in the same group.

Forced choice: A method requiring the rater to select the most descriptive statement in each pair of statements about the employee being rated.

Checklist: Performance appraisal tool that uses a lot of statements or words that are checked by raters.

Rating scale: A method which requires the rater to provide a subjective performance evaluation along a scale from low to high.

MBO: An approach in which employee and supervisor jointly establish clear, measurable performance jobs for the future.

Ranking: Listing employees from best to worst.

Impression management: Efforts by employees to obtain higher ratings by portraying an image desired by their supervisors.

Central tendency: The reluctance to use the extremes of a rating scale and to thereby fail to adequately differentiate employees being rated.

Assessment centre: One of the modern methods of performance appraisal. This method test candidates in a social situation by a number of assessors, using a…

Behaviorally anchored ratios scale: It is an absolute assessment technique wherein critical incidents are identified and a range of performance possibilities (from poor to good)…

Contrast error: Tendency to rate people relative to other people rather than to performance' standards,

Rater bias: Error that occurs when a rater's values or prejudices distort the rating.