Performance Appraisal Methods Best Suitable for Modern Workforce

HR Tech Outlook | Thursday, July 23, 2020

The employee performance appraisal process is a necessary task the organization needs to conduct to verify its workforce efficiency and determine where the lagging is high and balance out the objectives fulfillment rate. 

Fremont, CA: The employee performance appraisal process boosts productivity and improves the productivity of the organization. It is an annual process in which each employee’s performance and productivity are evaluated with a predetermined set of objectives. The right method for appraisal techniques can enhance the performance of employees within the organization. Some of these techniques are: 

Management by Objectives (MBO)

Management by objectives (MBO) is the method of appraisal, where managers and employees identify, plan, organize, and communicate objectives together, to concentrate on a specific appraisal period. After setting firm goals, managers and subordinates systematically debate the progress achieved to control and the feasibility rate of achieving those set objectives.

This method of performance appraisal is utilized to match the predominant organizational goals with the objectives of employees while validating those objectives with the SMART method to verify its specificity, measurability, achievable rate, and time-sensitivity.

Top 10 Employee Recognition Consulting/Service Companies - 2019360-Degree Feedback

360-degree feedback is a multidimensional performance appraisal method that assesses an employee based on the feedback collected from the employee’s circle of influence, such as managers, peers, customers, and direct reports. This method eliminates bias in performance reviews and provides a clear understanding of the employee’s competence.

Assessment Center Method

The assessment center method enables the company’s employees to realize how others perceive them and the impact these opinions have on their performance. The primary advantage of this method is, it not only assesses the general performance of an individual but also foresees the future of the job performance.

Behaviorally Anchored Rating Scale (BARS)

Behaviorally Anchored Rating Scales (BARS) focus on qualitative and quantitative benefits during a performance appraisal process. BARS refers to the employee performance to the specific behavioral examples that have been previously marked to numerical ratings.

 Each performance level on BARS is related to multiple BARS statements that explain common behaviors exhibited by an employee. These statements are considered as a yardstick to determine an individual’s performance.

Human-Resource (Cost) Accounting Method

The human resource (cost) accounting method evaluates the employee’s performance based on the monetary benefits they have brought to the company. It is calculated by comparing the cost of retaining an employee and the financial benefits brought to an organization by that specific employee.

See also: Top HR Technology Solution Companies

Weekly Brief

Read Also