The Performance Appraisal is the assessment of the employee’s job performance against the benchmark previously set for the categories such as output, leadership, teamwork, versatility, supervision, etc.
Modern Methods of Performance Appraisal
- Management by Objectives: This concept was given by Peter.F.Drucker. According to this concept performance of an employee is assessed considering the targets achieved by him which was set by the management of an organization at the beginning of the assessment period.Briefly it is done as follows
* Goals and objectives are set by the Management and communicate the same to the employees,
* Performance of an employee is compared against these set goals and is evaluated after the pre sanctioned assessment period.In case the employee is not capable in achieving the pre-established goals, then management decides to switch to new strategy or policy that should be undertaken for the accomplishment of unattainable goals. - Psychological Appraisals: This is very popular method in modern culture for performance appraisals. Under this method, psychologist assesses the employee’s potential for the future performance rather than the past one. In this process psychologist conducts the in-depth interviews, psychological tests, discussions with the supervisors and the reviews of other evaluations.Through this assessment system,the intellectual, emotional, motivational and other related characteristics of an employee can be determined with which it necessary to predict his potential for the future performance.
- Assessment Centres: The assessment center is a common location where the managers come and perform the job exercises. Here the assessee is requested to participate in in-basket exercises, role playing, discussions, computer simulations, etc. Where they are evaluated in term of their persuasive ability, communication skills, confidence, sensitivity to the feelings of others, mental alertness, administrative ability, etc.This entire exercise is done under the trainer who observes the employee behavior and then discusses it with the rater who finally evaluates the employee’s performance.
- 360-Degree Feedback: It is a feedback method wherein the details of an employee’s performance is gathered from several stakeholders such as superiors, peers, team members and self. It is worth while to mention that empoyee is asked about himself to get own idea of his work performance accordingly he can realize his strengths and weaknesses.Also, the peers or team members are asked about assessee’s performance through which the employee knows about what others feel about him and can overcome his disbeliefs if any. Thus, this method is used to have a detailed evaluation of an employee from all the perspectives.
- 720-Degree Feedback: This is a advance version of above discussed 360- Degree Feed back. This assessment is done not only by the feed back of stakeholders within the company but also from the groups outside the organization. These external groups who assesses the employee’s performance are customers, investors, suppliers and other financial institutions.It is one of the most crucial modern methods of performance appraisal because this is the only group that determines the success of the organization as a whole.
Though some companies of the world still practicing old method for employee appraisals it is advisable to use above discussed modern methods to identify the most accurate performance of the employees.
Reference
https://businessjargons.com/modern-methods-of-performance-appraisal.html (Online)
Dear Janaka,
ReplyDeleteIt's a good article even though those are not practiced in Sri Lanka very much. Most of the companies promote or increase salaries by giving personal favorations nowadays
Thanks for your views Nishantha.
ReplyDeleteMatter here in Sri Lankan organization is whether they are using the most appropriate method to identify the performance of the employee. As per the ideas I gathered from people who work in different companies performance appraisals are not done in a fair manner and individual performance is neglected if overall performance of the organization is not achieved.
it a really good article regarding appraisal method and company should alien with this sensitive matter if they want to achieve sustainable result.
ReplyDeleteThank you chamila. as you said appraising employees is very sensitive process. It depends among the quality of work , quantity of work, loyalty, customer alliance, timely involvement in work etc. Hence employers should identify the correct appraisal method to suit either total or majority of employees.
DeleteDear Janaka,
ReplyDeleteActually,employee's performance appraisal is one of reviewing method in present.It is very effective in both views of employee and employer.It is an assessment at the end of a time period which helps to understand the current position of an employee in his career.
Dear Janaka,
ReplyDeleteThis article is timely valued since the most organizations are still using conventional methods in appraising its employee’s performance which are less effective.
In the traditionally practiced performance appraising process, the supervisor or the manager annually writes his opinion of a reporting staff member on a document supplied by the HR department or in some organizations, the staff member is asked to fill out a self-review to comment or share with the supervisor.
In these methods, most of the time, the appraisal reflects what the manager can remember, usually the most recent events. Almost always, this appraisal method fails to communicate the real performance of the staff member which results to consequences effect on the employee and the organization as well.
It is time to implement this modern methods in forward thinking organizations instead of the less effective outdated methods.