• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

Business Finance Articles

Your First Financial Choice....

  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Modern Methods of Performance Appraisal

Last Updated on October 12, 2020 By Lisa C. Townes Leave a Comment

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.        

Table of Contents

  • Performance Appraisal Methods
    • Management by Objective (MBO)
      • Advantages of Management by Objective (MBO)
    • 360 Degree Feedback Appraisal Method
      • Advantages of 360 Degree Feedback Appraisal
    • Psychological Appraisal Method
      • Advantages of Psychological Appraisal Method
    • Behaviorally Anchored Rating Scales (BARS)
      • Advantages of BARS (Behaviorally Anchored Rating Scales)

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:

  1. Behaviorally Anchored Scale
  2. Forced Choice Scale
  3. Graphic Rating Scale
  4. 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
lisa
Lisa C. Townes

Lisa is a passionate travelers. She spends 3 months every year visiting different places worldwide. She has visited almost every famous place in the world. She herself is an affiliate blogger

Filed Under: Management Tagged With: Management, Methods of Performance Appraisal, Performance Appraisal

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I accept the Terms and Conditions and the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Why You Should Consider Investing in Bitcoin

People have different conceptions as far as investing … [Read More...] about Why You Should Consider Investing in Bitcoin

Accounting for Small Business – Top 5 Softwares

Individuals and businesses use accounting software to … [Read More...] about Accounting for Small Business – Top 5 Softwares

Six Ways Technology Will Redesign The Business Landscape In 2021

2020 left an everlasting mark on the lives of people … [Read More...] about Six Ways Technology Will Redesign The Business Landscape In 2021

How To Know You’re Ready For Retirement

One shouldn't work for money during their entire … [Read More...] about How To Know You’re Ready For Retirement

What Does Your Growing Business Need to Know About Financial Translation?

High-quality financial translation may be the key to … [Read More...] about What Does Your Growing Business Need to Know About Financial Translation?

A Step-by-Step Guide to Developing a Social Media Strategy

Many successful businesses enjoy the benefits of social … [Read More...] about A Step-by-Step Guide to Developing a Social Media Strategy

The Importance Of Understanding Bonds Before Investing

There's an increasing interest in investing among the … [Read More...] about The Importance Of Understanding Bonds Before Investing

How To Get A Liquor License In Los Angeles

Consumption of alcohol is one of the most preferred … [Read More...] about How To Get A Liquor License In Los Angeles

What Cryptocurrencies Are Likely to Explode in 2021?

Making a profit with cryptocurrencies means following a … [Read More...] about What Cryptocurrencies Are Likely to Explode in 2021?

How did the USA phone number list help the American Healthcare Businesses

Businesses from the States have been using tools and … [Read More...] about How did the USA phone number list help the American Healthcare Businesses

Why You Should Always Have a Lawyer Look Over Your Contracts

No matter what sector your business operates in, you … [Read More...] about Why You Should Always Have a Lawyer Look Over Your Contracts

How to Cash Out Ethereum – A Guide for Beginners

With the latest craze around technology, digital … [Read More...] about How to Cash Out Ethereum – A Guide for Beginners

What You Need to Know About DVR Trucking

Technological advantages keep on getting better. It is … [Read More...] about What You Need to Know About DVR Trucking

How to Master Personal Cash Flow Management

Do you ask yourself the same question every month – … [Read More...] about How to Master Personal Cash Flow Management

Dan Calugar Outlines 9 Macro Technology Forces for 2021

To stay ahead, business and technology leaders must … [Read More...] about Dan Calugar Outlines 9 Macro Technology Forces for 2021

Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

A timely business loan is a boon for small businesses. … [Read More...] about Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

4 Benefits of Investing in Technology in 2021

Nowadays technology has become so pervasive that, it … [Read More...] about 4 Benefits of Investing in Technology in 2021

Difference between Business Analyst and Project Manager

An organization can have both a business analyst and a … [Read More...] about Difference between Business Analyst and Project Manager

5 Best Cash Advance Lenders in the USA

Are you in need of quick money? I’m sure that’s why … [Read More...] about 5 Best Cash Advance Lenders in the USA

Change Management VS Project Management

Often people get confused between project management … [Read More...] about Change Management VS Project Management

Most Viewed

Business Growth Business Ideas Business Needs Business Tips Career Advice Career Development Career Guide Career Options COVID-19 Credit Card credit card reviews Credit Score Debt Management Differences Employee Entrepreneurship HRM Import-Export Importance Investment Loan Provider Loans MCQs Online Marketing Organization Pakistan Partnership Past Papers Payday Loan Payday Loans PPSC Production Pros Cons Publicity Quick Money Tips Roles and Duties Startups Strategies Students Help Tips Top10 Types UK UK Banks USA

Recent Comments

  • Faria on PPSC MCQs: Curriculum Development
  • saira on PPSC MCQs: Curriculum Development
  • Mehnaz kosar on PPSC MCQs: Curriculum Development
  • alvena on PPSC MCQs: Curriculum Development
  • Sara on PPSC MCQs: The Muslim of the Subcontinent & Their Education
  • zahid on PPSC MCQs: Curriculum Development
  • David Walker on 4 Efficient Tips To Find The Best Real Estate Agent
  • Ty Law on MDX500 Review – Is this Broker the Right Choice for You?
  • Varun sharma on Difference between Business Analyst and Project Manager
  • Varun Sharma on Laptops for Gamers under range of 40k-70k

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow on Google News
  • Follow on Facebook
  • Follow on Twitter
  • Follow on Medium
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • Speculator
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018 BFA - DMCA.com Protection Status .