Modern Performance Appraisal Methods
Employee Performance Appraisals
Figure 1: Modern Performance Appraisal Methods
In organizations, employees are
always looking for an opportunity for growth in terms of position and financial
income. To ensure that each employee is given an equal opportunity to grow and
improve productivity, organizations use Performance Appraisal methods.
In this context, traditional
performance appraisal methods fail to address consistent and continuous reviews
of employee performance. The annual performance appraisals most of the time focus
on employees' past performances and do not have a proper communication system to
provide employees with sufficient feedback. As result organizations have become
more reliant on modern performance appraisal methods to evaluate their
employees.
Modern Performance Appraisal Methods
1.
Management
by Objectives(MBO)
Management by Objectives is
an appraisal method in which managers and employees work together to identify,
plan, organize, and communicate goals during a specific time period and these
goals should be SMART.
S-Specific
M-Measurable
A-Achievable
R-Realistic
T-Time sensitive
Generally, in this method managers identifies
the chosen objectives and give responsibility to each employee, and periodically
discuss the progress made. The employer can use these data as a guide to
evaluating the employees.
Steps in the MBO process.
·
Define organizational goals
·
Define employee objectives
·
Monitoring performance and progress
·
Performance evaluation
·
Providing feedback
· Performance appraisal
Figure 2: Management by Objectives Process
2. 360 Degree Feedback Method
360-degree feedback is considered a multidimensional way of evaluating employee
performance and has become increasingly
popular these days. This method focuses on
collecting feedback from everyone the employee interacts with,
including managers, colleagues, customers, and direct reports. This
method eliminates the possibility of manager bias
affecting performance evaluation
and gives you a clearer picture of your employees' abilities related to their work.
Steps in
360-degree feedback method.
·
Self-Appraisals
·
Managerial reviews
·
Peer reviews
·
Subordinates appraising manager
· Customer reviews
Figure 3: Steps in 360-degree feedback
method
3. Human Resource Accounting Method
This
method is used to assess an employee's
performance based on the financial benefits the
employee brings to the organization. This suggests
that the employee
performance is compared to salaries and other costs that the company pays to employees.
In this
context, the cost of retaining an employee in relation to contributions is evaluated to determine the
cost of that employee to the organization.
Conclusion
Using modern Performance appraisal methods such as above helps to build a positive
work environment. Evaluating an employee's performance in a more realistic and
meaningful way will make the employee happy with the job. And satisfied
employees will do their best and contribute to the success of the company.
References
Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/management-by-objectives-mbo/
[Accessed 20 March 2022].
kissflow.com, 2020. kissflow.com. [Online]
Available at: https://kissflow.com/hr/performance-management/employee-performance-appraisal-method/
[Accessed 20 March 2022].
possibleworks. com, 2022. possibleworks. com. [Online]
Available at: https://possibleworks.com/blog/5-modern-methods-of-performance-appraisal/
[Accessed 20 March 2022].
Proper performance evaluation is essential to motivate and retain employees as well as to identify the employee's productivity. This article clearly describes performance evaluation techniques and the reader can get a good idea about the concept. All the Best!
ReplyDeleteDilini Karunaratne
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