Performance Appraisal Methods
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Transcript of Performance Appraisal Methods
Performance Appraisal MethodsPerformance appraisals are carried out by the HR department of the companies in order to evaluate theperformances of its employees and to bring about improvement in them. Here we have discussed aboutsome effective performance appraisal methods.
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Performance appraisal is an integralpart of performance management.Usually, it is done once in a year.Apart form improving the employee performance upto its maximum potential, it has several otherbenefits. Like, it is a kind of feed back given to the employees by the employer, it gives theemployees an opportunity to communicate with the employer. Also, the employee becomes awareof the roles, responsibilities and expectations of the employers through these performanceappraisals. It helps the employers to recognize the competency levels of the employees. Theemployers come to know if there is requirement for any further employee training throughperformance appraisals. It is also useful in deciding on the allocation of rewards to the employees,according to their performance like salary hike or promotions. There are various types ofperformance appraisal methods that are used by different companies. To know more read onperformance appraisals.
Performance Appraisal Based on RankingIn this method, the performances of all the employees are compared with one another and not toany definite standard measurement. The performances are represented graphically where theyare ranked in the range of best to worst as per their performances. Usually, maximum number ofemployees are found in the middle of the curve, as it represents employees with an averageperformance while the best and the worst performers are at the either ends of the curve. Thismethod helps to choose the best performer among the best of the performances. This method isapplicable only on those employees who are doing the same kind of job. The disadvantage of thismethod is that it can trigger off rivalry among its employees, which may adversely affect theworking environment. Moreover, a negative performer is labeled as a loser in this method whichmay affect the motivation of the concerned employee.
Performance Appraisal Based on RatingHere evaluation of the performance is based upon certain traits of the employees. Some of thekey traits that are included for this purpose are employee motivation, attitude, flexibility, quality ofwork, quantity of work, cooperativeness, participation in team work and so on. Every employee isgraded on each of these traits. Usually, it is done objectively by yes/no orsatisfactory/unsatisfactory check boxes. The disadvantage of this method is that there is nospecific definition for any given trait. Evaluation of a particular trait can vary from one person tothe other. This may create confusion among the employees and give rise to tension between theemployee and the employer.
Performance Appraisal Based on BehaviorAlso known as behaviorally anchored rating scales. It is slightly different from any other jobperformance appraisal methods. As the name suggests, the performance is rated from best toworst according to the behavior pattern required for a given job. However, it does not take intoaccount the trait and personality factors. All the dimensions of job behaviors that are relevant for aparticular job has to be included in the scale and thus, a clear standard is developed. For this kindof analysis, thorough knowledge of the job behavior, required for a specific job is a must.However, this is a slightly complicated as well as time consuming process because for each typeof job, a suitable scale has to be constructed.
Topics
Performance Appraisals
Employee Incentives
Employee Management
Employee Motivation
Employee Performance
Human Resources
Key Performance Indicators(KPI)
Performance Management
Salary Negotiation
Career Development
Employee Training
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Performance Appraisal Based on ObjectiveThis method is called Management by Objectives (MBO). In this method, certain goals andobjectives are set by the employer after discussing them with the employees. The performance ofthe employees are evaluated periodically after they submit their status report from time to time.When there is a specific set of goals, the employee feels motivated and puts in the best possibleefforts to achieve the goals. This method often helps in obtaining higher levels of performancesfrom the employees. The disadvantage of this process is that in a way, every employee starts tooutperform the other which may result in an non cooperative atmosphere in the work place and inturn affecting the productivity.
There is one narrative based performance appraisal which is used along with other performanceappraisal methods. For this, the HR manager as well as the employee give written statements onthe performance of a particular employee. It can be done in two different ways. Either they canwrite whatever they wish to or there could be some given set of questions which needs to beanswered by both. You can also refer to 360 degree feedback - multisource feedback.
One cannot say which type of the performance appraisal method is the best. One method that issuitable for a company may not be right for others. To a great extent, it depends on the systemprevailing in the company. Sometimes, companies use more than one of these methods for betteranalysis of their employees.
By Bidisha Mukherjee
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Performance Appraisal Methods http://www.buzzle.com/articles/performance-appraisal-methods.html
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