Performance Appraisal - Methods of Performance Appraisal - Edupedia

 

Definition:

Performance appraisal is a continuing process of looking and measuring the performance of the employees.

Organization uses different technique for this purpose to evaluate the actual performance of the employees. The purpose of the performance appraisal is to determine which employees are beneficial to the organization and which are not. At the end of the every performance appraisal there might be some rewards or punishments

Methods of Performance appraisal:

Organizations are using different methods and techniques to measure the performance of their employees for setting the different goals in future accordingly. These methods and techniques can be separated into two different broad perspectives.

Ø  Tradition method of performance appraisal

Ø  Modern method of performance appraisal

Tradition method of performance appraisal

Tradition methods of the performance appraisal are considered as old methods for checking and evaluating the performance of the employees. These evaluation consist of checking the personal qualities a like skills and knowledge he have, capacity of doing work, judgments, attitude at workplace, loyalty with the organization, leadership qualities and initiative for better work.

The techniques falls under the traditional method for performance appraisal are:

v   Unstructured Method of Appraisal

v   Field Review Method

v   Man to Man Comparison Method

v   Graphic Rating Scale

v   Forced Choice Method

v   Paired Comparison Method

v   Grading Method

v   Check List

v   Free Essay Method

v   Straight Ranking Method

v   Critical Incidents Method

Modern methods of performance appraisal:

Use of technology for the measurement of performance of the employees is considered as the modern method of performance appraisal. It is done by using the technology in old techniques and improving the methodology. Here is the list of modern techniques that are being used for the purpose of performance appraisal.

v  Target Setting Approach of Management by Objectives

v  Behaviorally Anchored Rating Scales (BARS)

v  360 Degree Feedback

v  Assessment Center Method

v  Psychological Appraisals

v  Human-Resource Accounting Method

v  General Performance Appraisal

v  Technological Performance Appraisal

v  Sales Performance Appraisal

v  Critical Incident Method of Performance Appraisal

v  Confidential Report System

v  Checklist Method

v  Field Review Method

Management by Objectives (MBO)

            Management by objective simply called as MBO, is a management technique in which the workers are assigned with a job, task or objectives to be achieved. They check for the performance of the employees and review the efficiency of the worker during the job.  The important thing to be remembered at the time of allocation of the job is that the tasks must be realistic, measurable and achievable. MBO is most commonly used method of the performance appraisal because it does not disturb the workings and there is no wastage of time. Secondly, it is an economic method of performance appraisal.

 

Behaviorally Anchored Rating Scale (BARS)

            It is also an effective method of measuring the performance of the employees. However, it is an expensive method but it gives the guaranteed results. It is done by scaling the traits of individuals by using the Behaviorally Anchored Rating Scale (BARS). We can rate the behavior of the employees in this scale as good, average or poor. This method helps the management to assign the duty of the evaluated employees according to the results in future.

 

360 Degree Feedback:

            This is the technique of performance of performance appraisal which is being used most widely in the organizations. Although this technique is time taking because we need a lot of time to complete this appraisal but it is considered as most realistic resulting technique. In this technique the customers are given the scale form to feedback the performance of concerned employees. They rationally respond according to the service delivered to them. On the other hand, employees themselves are also allowed to give statement and the management is also involved to give their views about the employees. This process is very suitable for unbiased results.

 

Assessment Center Method:

            In the Assessment Center Method, an organization sets up a social simulation in which employees are asked to take part. This method is also time taking as well as an expensive method. By this method employees are well informed about how they are being observed by the other people. This method is very helpful if the organization wants to know about the current position and performance of the employees. They are also in the better position to forecast the future performance of the employees.

       

Psychological Appraisals:

            This method of performance e appraisal is best suitable if the organization wants to check out and forecast the performance of the employees in future rather than the past. Psychological appraisals are the technique to get the information of an employee’s covered potential.

In this method the major elements of employees performance are taken into consideration such as; Leadership skills of the employees, personal traits and emotions of the employees, intellectual traits of the employees, cognitive abilities they have and interpersonal skills in the employees.

 

Human-Resource (Cost) Accounting Method

            It is cost and advantages based method of the performance appraisal. The performance of an employee is compared with the advantages he gets from the company in this method of performance appraisal. For this purpose the management uses different methods based on cost.

General Performance Appraisal in HRM

            This is also a commonly used method of the performance appraisal. Usually, the management calls to an employee and set a goal or target for him to achieve. Management is also behind him to encourage and motivate for the work. At the end of task the management is in a position to decide about the performance on the base of the effectiveness of the work.

Technological Performance Appraisal:

            This method of performance appraisal is based on technological awareness. Employees are judged according to their will and interest to learn the new technology. They are checked about how well they are aware about the modern methodologies of work and innovations in the work. If they can modernized them by learning the new technology they are considered as effective at work.

Sales Performance Appraisal:

          It is also considered as most effective and common method of performance appraisal. It is general known that the sale is the actual process through which most of the organization earns profit. So, in this process management sets the goals and tasks of the employees on the base of sale. If the employee completes their tasks effectively, he is appreciated and rewarded with more bonuses.

 

Critical Incident Method of Performance Appraisal:

            In this process the performance is evaluated through the critical analysis of the employee’s performance. The manger checks the critical incidents in which an employee is involved. Through the number of incidents per period a manger recognizes the behavior of the employee during the job. One thing to know that the critical incidents doesn’t only mean that the performance and behavior of employee is below the expectations. It also means during some period an employee may be more efficient than the expectations. He is showing more diligence during that period and performing his job outstandingly. So, it may be check positive incidents of employee’s performance as well.

 

Confidential Report System:

As according to the name, this is a secrete way of measuring the performance of the employees. In this process the performance of the employees is showed to the higher level authorized management in the sealed envelopes and even the employee himself doesn’t allow having access to check it. This kind of performance appraisal is usually done in the public sector, especially the secrete agencies. But this process in not looked effective because employee can not improve himself if he doesn’t know where he have not done well.

Checklist Method:

            This is also a widely used method of the performance appraisal because this process is easy, objectively and time saving. Usually in this process managers are given a check list which is questionnaire type. This questionnaire contains multiple choice questions which has answer in “yes” or “no”. The questionnaire may also include statements for which the manager have to answer about his degree of agree or disagree.

However, this process has some limitations because of lack of subjectivity. The required actions for the improvement of the results cannot be easily understood.

 

Field Review Method:

This type of performance appraisal method is rechecking the employee’s performance by the human resource department. When the Human Resource department thinks that the manager’s report about the employee’s performance may be biased, they take the matter in their own hand for rechecking. It can be done by calling the employee in HR department for an interview by predetermined questions based on the performance assessment.

However, this process is insignificant, because the management thinks that Humanresource department is interfering in their team matter and management.