Performance appraisal refers to the documentation and evaluation of the employees ’ job performance. It plays an important role in the career development of an employee. Yearly performance appraisal of employees helps the company to boost up its productivity and achieve its objectives.
Performance appraisal is the practice of enhancing the employee’s focus on work by promoting trust. Though performance appraisal is a positive measure and brings great changes in the overall performance of companies.
But if performance appraisal is not carried out rightly, the consequences may not be appreciable because a wrongly done employee appraisal can lead to several potential complications.
If the methods choose for performance appraisal are not appropriate, they may result in negative perception and may even lead to stress, discomfort, and tension between the line manager and subordinates.
Therefore, it is important to select a right and appropriate method to carry out the performance appraisal. The methods used in the past were showing various complications in the results, that’s why modern methods of performance appraisal were introduced.
So if you want you to carry out PA on your employees and are looking for the best method to do so, then you can take complete advantage of PA to enhance your company’s efficiency and productivity.
Performance Appraisal Methods
Management by Objective (MBO)
In this method of performance appraisal, both employees and managers cooperate and sit together to discuss the past problems and performances.
They then spot out, arrange, make plans, and communicates about the goals and objectives to be achieved. And after that, they conduct regular meetings in which the employee shares the progress made by him or her with the manager.
The employer then makes a report of this progress to measure how much the employee is contributing to the enhancement of productivity and learning new skills.
Advantages of Management by Objective (MBO)
The MBO appraisal methods come with the following benefits:
- Enhanced and improved sense of identification
- Increased productivity
- Better communication between employer and employee
- Development of an employee’s career
360 Degree Feedback Appraisal Method
The 360-degree feedback method is one of the multi-dimensional appraisal methods. It is used to keep the employee motivated and influenced. This method includes the collecting of feedback of a specific employee from his or her subordinates, supervisors, colleagues, and sometimes, even the employee himself.
The purpose of this method is to collect the information about employee’s behavior and attitude towards buyers and co-coworkers so that if there is any improvement required, it can be carried out. This method is one of the most used methods and it really does help improve productivity and performance.
Advantages of 360 Degree Feedback Appraisal
The 360-degree feedback has many benefits, however, only a few of them are given below:
- It boosts up moral values
- Increased self-awareness
- Builds up confidence
- Increased professional development
Psychological Appraisal Method
This method is the most interesting method of all. In this method of performance appraisal, the company focuses on the future progress of an employee rather than evaluating his past performances.
Several psychologists are involved to carry out the Psychological appraisal method, the psychologists study, and assess various psychological activities of the employee like his emotional stability, intellectual abilities, analytical expertise, etc.
In this method, the psychologist also observes how the employee deals with an aggressive and argumentative client. His behavior, his attitude, and his stress level are also studied.
Advantages of Psychological Appraisal Method
Below given are some of the benefits that the psychological appraisal method of management offers to both the company and the employee:
- It not only observes the performance of an employee but also studies his potential
- Provides more opportunity to the reserved and bashful employees to prove themselves
- More effective in boosting up productivity than other appraisal methods
Behaviorally Anchored Rating Scales (BARS)
The Behaviorally Anchored Rating Scales (bars) method is thought to be the most effective method. In this method, the employee’s performance is measure by rating scales. There are four different types of scales used to measure particular behavior and attitudes, these are:
- Behaviorally Anchored Scale
- Forced Choice Scale
- Graphic Rating Scale
- Mixed Standard scale
All these scales have got the rating from “excellent” to “poor”. The performance and behavior of an employee become much easier to measure with these scales.
Advantages of BARS (Behaviorally Anchored Rating Scales)
Let’s have a look at a few advantages of BARS appraisal method
- Improves the organization’s performance
- Increased reliability
- Improves feedback