Employee Performance Appraisal Methods
The employee performance appraisal is a systematic process for an organization to evaluate and improve employee productivity and to boost their output. Usually these appraisals are carried out on an annual basis where an employee’s performance is evaluated against a set target. Further it is used to analyze the Strength and Weaknesses of an employee and also to measure how well the employee has performed on the job.
Performance appraisal assists an organization to determine the below facts:
- It provides information to make decisions in terms of Salary Increment, Promotions, tangible and intangible benefits
- It assists to compare and contrast the performance of subordinates and implement changes and strategies where required.
- Being able to know about the employee’s skill and knowledge from his/her immediate supervisor.
- To prevent grievance and provide transparency
among subordinates.
Several authors have interpreted the Categories of Performance Appraisal over a period of time:
|
Authors |
Categories |
|
DeCenzo
and Robbins |
Absolute
Method Relative
Method Objective
Method |
|
Aswathappa |
Past-oriented Future-oriented |
|
Michea
R Carrell et. Al |
Rating
Scales Comparative
Methods Critical
Incidents 6ssay MBO
Combination
Methods |
|
Strauss
and Sayles |
Traditional
Methods Modern
Methods |
Table: 1
Let’s discuss about the 3 Modern Performance Appraisal Methods widely used by organizations
1. Management by Objectives (MBO)
MBO
is an appraisal method, where the managers and subordinates work towards a
common goal which is identified, planned, organized and communicated to focus
on a specific period of time. It is the superiors’ responsibility t
periodically review the subordinates progress towards achieving the set common
goal.
The
set common goal should be SMART:
- S – Specific
- M – Measurable
-
A – Achievable
-
R – Realistic
- T – Time-sensitive
MBO
has 4 steps to it:
1.Goal
Setting – Individual goals are set in order to attain the common goal of the
organization
2.Performance
Standard – Employees are being evaluated on the process of their set target
against the specified time frame.
3.Comparison
– Employees periodically review their performance against the set target and
discuss on drawbacks to achieve the set target.
4.Feedback
– Finally the employees’ get-together to evaluate their final performance
within the set period and reward accordingly. And to evaluate on areas to
improve and set new targets and continue the process.
2. 360 Degree Appraisal Method
This is an appraisal method where an employee’s performance is determined based on the views and reviews from his/her direct supervisors, Managers, Peers and Customers. This enables the employer to assess the employees’ fullest competent in a holistic view.
This Appraisal method has 5 integral components:
1. Self-Appraisal – Employee gets an opportunity to assess themselves on their goal attainment
2. Managerial Reviews – Performance reviews conducted by Managers’ which includes employee ratings and rewarding.
3. Peer Reviews – Co-workers get a unique opportunity to express their insights about the employees’ performance and contribution individually as well as to the team.
4. Subordinate Appraising Managers – Evaluation done from managerial point of view.
5. Customer
/ Client Reviews – Feedback can be gathered from Internal
and External customers who dealt with the employee on a regular basis.
3. Human Resource (COST) Account Method
Cost
accounting method analyses the performance by means of financial income the
employee has brought into the company against the cost of retaining the
employee.
Retaining Cost would comprise of Financial Benefits, cost on training and development etc. meantime financial benefits a company has yield from the employee, in a Banks perspective, How Many Accounts, Personal Financial Services canvassed, Value of deposits canvassed and so on.
In
conclusion, performance appraisal is a clinical aspect in every industry since
these appraisal decides their financial benefits which motivates the employee
to contribute his fullest to the organization.
References
Anon., 2020. www.Kissflow.com. [Online]
Available at: https://kissflow.com/hr/performance-management/employee-performance-appraisal-method/
[Accessed 24 July 2021].
Anon., n.d. www.shareyouressay.com.
[Online]
Available at: https://www.shareyouressays.com/knowledge/4-main-steps-involved-in-the-mbo-technique-of-performance-appraisal-to-improve-the-efficiency-of-your-organisation/94520
[Accessed 24 July 2021].
Chand, S., n.d. www.yourarticlelibrary.com.
[Online]
Available at: https://www.yourarticlelibrary.com/performance-appraisal/performance-appraisal-methods-traditional-and-modern-methods-with-example/35492
[Accessed 24 July 2021].
