Performance Appraisal Methods to Be Followed 1

Best Performance Appraisal Methods to Be Followed

Performance appraisal can be described as a systematic evaluation of the performances of several employees. It helps them understand the abilities of a person and their development and growth. Performance appraisal is also done in a very systematic manner which includes measuring the pay of employees and comparing it with all plans and targets.


The employee performance appraisal process is crucial for organizations as it plays a key role in boosting employee productivity and improves their outcomes. Performance appraisals are an annual process where an employee’s performance and productivity are evaluated against a predetermined set of objectives.


In professional organizations, performance management is very necessary. Not only because it is the main factor for determining an employee’s wage rise and promotion but also because it can evaluate an employee’s skills, strengths, and shortcomings accurately. However, there are so many factors due to which employees are not appraised the right way, and this is the main reason employees change jobs or feel unsatisfied at the workplace. Most of the appraisals are rarely put to good use as they fail to internalize employee performance results. The HR managers must understand and revamp their existing process and try implementing modern performance appraisal methods to help organizations and employees progress in the right direction.


Best modern performance appraisal methods

Traditional appraisal methods included the ranking method, paired comparison, grading method; forced distribution method, forced-choice method, and check-list method, but these methods did not show desired results. New and better modern appraisal methods are used by organizations now that help them enhance employee performance within the organization. It is necessary to understand that the best modern performance appraisal method can make the entire experience effective and rewarding.


Read on to know more about the most used best performance appraisal methods that organizations must follow to meet success.


Management by Objectives (MBO)

It is the appraisal method in which 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 intermittently discuss the progress made to control and debate on the feasibility of achieving those set objectives.


360-Degree Feedback

It is a multidimensional performance appraisal method that evaluates an employee based on 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 offers a clear understanding of a worker’s competence.

Performance Appraisal Methods to Be Followed

This appraisal method contains integral components like:


Managerial reviews

Peer reviews

Subordinates Appraising Manager (SAM)

Customer or client reviews


With help of this method, Dissertation help company employees are also aware of how they are performing and how it is affecting the organization. It serves as a key to coach, counsel, and develops activities that help the employees do better to enjoy better appraisals.


Assessment center method

This method enables employees to get a clear picture of how others observe them and the impact it has on their performance. The best thing about this method is that it not only assesses the existing performance of an employee but also predicts future job performance.


During the assessment, the workers take part in social-simulation exercises like in-basket exercises, informal discussions, fact-finding exercises, decision-making problems, role-play, and other exercises that ensure success in a role. With this method, employers get to know more about the participant’s knowledge, thought process and improve efficiency. As it can be tailored to different roles, competencies, and business needs, this method works well for organizations that want to implement modern appraisal systems.


Behaviorally Anchored Rating Scale (BARS)

This method brings out both the qualitative and quantitative benefits of a performance appraisal process. It 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 that describe common behaviors that an employee routinely exhibits. These statements act as an index to measure an employee’s performance against predetermined standards that apply to their role and job level.


This method works well as it improves feedback, offers accurate performance analysis and consistent evaluation that keeps the employers as well as the employees happy. As it decreases the possibility for bias and enhances fairness through the appraisal process, it is ideal for all businesses and industries and helps them assess their staff most successfully.


Psychological Appraisals

They come in handy for determining the hidden potential of employees. This method focuses on analyzing an employee’s future performance rather than their past work. These appraisals help 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 skills.


This method is carried out by qualified psychologists who conduct a variety of tests including in-depth interviews, psychological tests, discussions, and more to assess an employee effectively. It is a time taking and slow process and the results are dependent on the psychologist in control of the procedure. This method works best with shy or introverted employees who might be reluctant to come out and showcase their talent as it offers them a platform to shine and show their potential.


When combined with other performance appraisal methods, this method can deliver some great results and provide objective data about an employee’s performance and potential.


Human-Resource (Cost) Accounting Method

The human resource (cost) accounting method analyses employees’ performance through the monetary benefits they yield to the company. The data is accumulated by comparing the cost of retaining an employee (cost to company) and the monetary benefits (contributions) an organization has ascertained from that specific employee.


This method is effective for measuring the cost and value that an employee adds to the organization and helps to identify the financial implications that an employee’s performance has on the organization’s profit and loss statement.


With the best performance appraisal methods to be followed, organizations and employees can understand each other better, obtain mutual benefit and look forward to a long-term partnership.

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