This is the second module in a four-module training package for use in inservice seminars or workshops on performance appraisal and employee development. Module 2 concentrates on different methods of performance evaluation, including essay, ranking, forced distribution, nonanchored rating scale, weighted checklist, forced choice, critical incident, and behavioral anchor. Rationale, procedures required for developing each method, and their strengths and weaknesses are presented. Selection of a system is discussed in terms of goals and objectives of an organization's performance evaluation system. The module concludes with a series of exercises on developing, analysing, and rating critical incidents. The module includes both instructor and student manuals. The instructor's manual consists of two major parts. Details of Workshop contains the following information: objectives, time needed, agenda and time allocation, resources and materials needed, and bibliography. The second part is the Module Outline for Instructor with copies the transparencies needed. The participant's manual contains copies of all materials the student will use, including the pre/post-test and copies of all transparencies. An answer key for the test is provided. (YLB)