Modern Performance Appraisal Methods
Modern Performance Appraisal Methods
Introduction
Performance appraisal is an annual process that involves
setting clear, quantifiable goals and objectives and assessing individual performance.
It evaluates the employee's performance and productivity against
the pre-determined set of objectives for that year.
Employee
Performance Appraisal
The
employee performance appraisal process is crucial for organizations to boost
employee productivity and improve their outcomes. Performance appraisals are an
annual process where an employee’s performance and productivity is evaluated
against a predetermined set of objectives.
Performance management is super important, not only because
it is the determining factor in an employee’s wage rise and promotion but also
because it can evaluate an employee’s skills, strengths, and shortcomings
accurately.
1.
Management by
Objectives (MBO)
Management by objectives (MBO) is the appraisal method
where managers and employees together identify, plan, organize, and communicate
objectives to focus on during a specific appraisal period. After setting clear
goals, managers and subordinates periodically discuss the progress made to control
and debate on the feasibility of achieving those set objectives.
2.
360- Degree
Feedback
360-degree feedback is a multidimensional
performance appraisal method that evaluates an employee using feedback
collected from the employee’s circle of influence namely managers, peers,
customers, and direct reports. This method will not only eliminate bias in
performance reviews but also offer a clear understanding of an individual’s
competence.
3.
Assessment
Centre Method
The concept of assessment Centre was introduced way back
in 1930 by the German Army but it has been polished and tailored to fit
today’s environment. The assessment Centre method enables employees to get a
clear picture of how others observe them and the impact it has on their
performance. The main advantage of this method is that it will not only assess
the existing performance of an individual but also predict future job
performance.
4.
Behaviorally
Anchored Rating Scale
(BARS)
Behaviorally anchored rating scales (BARS) bring out
both the qualitative and quantitative benefits in a performance appraisal
process. BARS compares employee performance with specific behavioral examples
that are anchored to numerical ratings.
Each performance level on a BAR scale is anchored by multiple BARS statements
which describe common behaviors that an employee routinely exhibits. These statements
act as a yardstick to measure an individual’s performance against predetermined
standards that are applicable to their role and job level.
5.
Psychological
Appraisals
Psychological appraisals come in handy to determine the
hidden potential of employees. This method focuses on analyzing an employee’s
future performance rather than their past work. These appraisals are used to
analyze seven major components of an employee’s performance such as
interpersonal skills, cognitive abilities, intellectual traits, leadership
skills, personality traits, emotional quotient, and other related skills.
6.
Human
- Resource (Cost) Accounting Method
Human resource (cost) accounting method analyses an
employee’s performance through the monetary benefits he/she yields to the
company. It is obtained by comparing the cost of retaining an employee (cost to
company) and the monetary benefits (contributions) an organization has
ascertained from that specific employee.
Conclusion
Goals and objectives established and every employee has
to be involved in the process. Also conducting a performance appraisal will
improve productivity and also the morale of the employee
References
https://www.google.com/search?q=WHAT+IS+MODERN+PERFORMANCE+APPRASISAL+METHODS&rlz
https://kissflow.com/hr/performance-management/employee-performance-appraisal-method/
https://www.google.com/search?q=employee+performance+appraisal+PIC&tbm=isch&ved=2ahUKEwjp-9_t8KDwAhUOMLcAHUFpCi0Q2-cCegQIABAA&oq
A ratings scale is a common method of appraisal. It uses a set of pre-determined criteria that a manager uses to evaluate an employee against. Each set of criteria is weighted so that a measured score can be calculated at the end of the review.
ReplyDeleteFew modern performance appraisal methods are
Management by Objectives (MBO)
360-Degree Feedback
Assessment Centre Method
Behaviorally Anchored Rating Scale (BARS)
Psychological Appraisals
Human-Resource (Cost) Accounting Method
Employee performance appraisal is critical for any organization. It helps the management to track employee performance, which is directly linked to organizational growth. It helps in boosting employees’ motivation, productivity, and commitment to the organization. Author has very well explanation of Performance Appraisal Methods.
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