When it comes to efficient talent management of an organization, performance appraisal method is its spine! The modern day feedback model comes with a spectrum of methods to share constructive feedback with the employees and motivate them to do much better in the future while praising their efforts. These methods streamline and optimize the employee performance via the fusion of conventional approaches and modern real-time strategies.
With these methods, you can inspire and gauge into the performance of an individual employee. Do you want to know some of the effective methods? Read this blog as it entails top 7 tried-n-tested methods to keep your company forward.
What’s performance appraisal?
Performance appraisal refers to a formal procedure of assessment to check the job performance of every employee. It consists of a well-structured review on the accomplishments, skills, work and goal attained by the individual employee.
Every organization can conduct performance appraisal program at a regular interval of time or once a year. The key aim is to offer the employees with constructive feedback mentioning the areas need improvement and expected performance for the running year.
360-degree feedback
36-degree feedback is a technique for assessing the employee performance with the help of solicited input from different sources (mainly individuals that form the circle of influence for them). This circle mainly comprises of direct reports, customers, colleagues and supervisors and the entire procedure covers the following:
- Selection of raters like subordinates, peers and supervisors including self-assessment
- Feedback collection to seek input for employee performance
- Checking the feedback collected for detailed insights
- Feedback sharing with the employee
- Collaboration with the employee for a development plan
BARS (Behaviorally Anchored Rating Scale)
This performance appraisal technique is quite unique as it comprises of combination of numerical ratings and narrative descriptions. Usually, it involves:
- Identification of main job behaviors
- Offering numerical ratings
- Collection of input from experts, managers and other employees
- Developing unique descriptions for various performance levels
- Assessment of employees depending on the descriptions
Psychological appraisals
As its name implies, this is all about considering and determining the emotional and mental attributes of the employees. Also known psychological appraisal method it looks for interpersonal skills, motivation and personality in the employees. The process usually encompasses:
- Administration of psychological tests and examinations
- Checking the responses for gauging preferences, mental well-being and traits
- Comparison of the result with performance expectations and job requirements
MBO (Management by Objectives)
MBO is another method for performance appraisal in which both managers and employees collaborate and collectively set measurable goals to attain in the current years:
- Developing clear objectives and key results (OKRs)
- Reviewing of progress regularly within employees and managers
- Checking the achievements for preset goals, objectives or targets
Assessment center method
This performance appraisal approach reviews the competencies of the employees via a range of simulations and activities. The procedure includes:
- Organizing certain exercises in the workplace like presentations, role plays and group discussions
- Checking the performance of the participants against preset competencies
- Sharing detailed feedback mentioning development recommendations
Cost counting method
It takes the performance of employees with the value of their employment and ROI of the organization. This method makes use of figures mostly acceptable in the industries that are directly proportionate to revenue.
- Checking the performance cost components like resources, benefits, salary and training
- Allocation of costs to any particular performance activities or individual employees
- Assessment of performance against preset job objectives and criteria
- Computation of total performance costs including both indirect and direct expenditure
- Check the correlation between individual employee performance and costs
- Examine if the cost is perfectly aligned with the outcomes and figure out performance improvement or cost-effective opportunities
- Implementation of cost accounting insights on HR decisions for certain aspects including training, compensation and others
720-degree method
720-degree performance appraisal is a method to gather feedback from multiple sources comprising of external stakeholders, subordinates and peers for a perfect evaluation.
It extends beyond the conventional 360-degree method with broader array of sources for collecting feedback. The procedure covers:
- Self assessment
- Evaluation collected from supervisors, subordinates and peers
- Feedback shared by external stakeholders
- Report generation and analysis
- Collection of performance data
Conclusion
Performance appraisals are among the strongest tools in talent management because they allow for a structured approach to improve and evaluate the performance of the employees. From the 360-degree feedback method to the comprehensive approach of the 360-degree method, various appraisal approaches offer an organization the opportunity to make use of insights shared by several members in order to give multilateral evaluations
. Techniques such as Behaviorally Anchored Rating Scales, Management by Objectives, and psychological appraisals blend time-tested practices with real-time ones for personal and professional growth. Appraisal tools that take this form provide constructive feedback on areas where improvement can be made, bringing it into play relative to observable facts such as concrete achievements.
This is a set of fundamental methods that organizations adopt repeatedly to energize their employees and improve performance, efficiency, and the engagement at work. Secondly, employee goals being integrated with organisational goals ensure a coarser and more focused workforce. After all, regular appraisals lead to a path of success in the long term for businesses to maintain a competitive edge and responsiveness in today’s ever-changing business world.
Tags: Employee ExperiencePerformance Appraisal