Performance management is one of the rapidly changing part of talent management system. Performance appraisal is the process of evaluating the performance of an employees in a certain time period and searching for ways to improve their performance.
Many companies claim that performance appraisal process takes a lots of time and has no value even after spending so much time on it. And also complain that it isn’t contributing to engagement. The truth is, old and traditional methods are no longer giving effective results. It is the time for you to revamp the process.
Here are some of the modern methods of performance appraisal methods which you can implement right away.
5 effective performance appraisal methods
1. Management by objective
It is a process in which a manager identifies the desired objectives to be achieved and gives each individual a major areas of responsibility in terms of results expected from him/her and use these measures as a guide to access the contribution of each individual employee.
It is less time consuming and cost effective compared to other performance appraisal methods. With this method you can easily find out whether the stated objective is achieved or not in a given time period.
2. Behaviorally Anchored Rating Scale (BARS)
This method has been developed recently and is claimed to be one of the effective methods among all the appraisal methods listed. It is a combination of traditional essay evaluation and rating scale. It is more expensive than other methods and guarantees precise results.
In this method the employee’s behavior and performance are analyzed and used for evaluating overall performance of an employee. HR department is involved in this process. Based on the performance and behavior of an employee, they are anchored as good, average, or poor.
3. Critical Incident Method
In this method the employer or manager evaluates an employee on the basis of “certain events” known as critical incidents where the employee did something really great or something not so great things.
The evaluator should maintain a digital or physical journal to store the information of different incidents. This method is extremely useful for the growth of an employee since it gives detailed information unlike other performance appraisal methods.
4. 360 Degree Feedback
This is somewhat time consuming method since there are multiple raters involved in evaluating the performance. But it’s worth a try. In this method the feedback of the employee is collected by the people who interact with him in the organization including his superiors, peers, subordinates, and also from customers. The feedback is usually taken by a questionnaire designed for this purpose. This method is very useful for the startups. Take a look at this detailed info-graphic on 360 degree performance appraisal process
5. Forced choice method
In this method evaluator rates an employee based on the group of statements. These statements are combination of both negative and positive statements. You need to identify the most descriptive statements of an employee and evaluate him. Such as:
Can be dependent to complete the project or task
Is reliable and trustworthy.
These are the 5 effective performance appraisal methods you can Implement right away. Implementing these methods helps in the growth of an employee and hence the growth of an organization.
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