There are three principal performance appraisal methods which are used by modern organizations. These are management by objectives, the use of ratings scales and 360° feedback. This post goes through the pros and cons of each.
Management by objectives has been used since the 1950s to evaluate employees in a variety of organizations. Managers and employees establish what objectives the person has severe and then praises whether the goal was achieved successfully or failed. Each of these goals have to be achievable for the individual employee and be given a set deadline by which it is to be achieved. Any failures may result in a set series of productivity improvement plans being applied.
Ratings scales are more commonly used in larger companies as a way of evaluating large numbers of employees. They incorporate the use of a grading system (much like the way school-kids are evaluated) to assess each employee base in a number of different factors. These factors can include performance, leadership, communications, professionalism, etc. This technique can be quite rapidly instigated and implemented on a yearly basis. It also allows companies to compare various employees performing the same tasks more easily. The sole downside however is that technical abilities of individuals will have to be customized as part of the grading system if employees are not being the same roles.
The use of 360° feedback is one of the more popular performance appraisal methods used within consultancy firms. Managers seek out interviews with an individual working with the person being appraised to gain feedback and a broader view of their performance. The individual is usually assessed on a couple of key characteristics or traits (such as performance, professionalism, etc.). The drawback of the technique is the huge volume of interviews that may be required. On the upside, you do get a clear picture of the person’s performance over the space of a year.
- Performance Appraisal Methods That Work (onlinesurveysforcash.org)
- 3 Performance Appraisal Methods That Work (iamsellingtoday.com)