Performance appraisal is an integral part of performance management as it allows employers to measure employee productivity and assess whether employees are meeting the expectations of their jobs. Additionally, through performance appraisals, employers can identify areas in which employees need improvement and provide them with the necessary training and development opportunities.
What is Performance Appraisal?
A performance appraisal reviews an employee's job performance and potential. It typically occurs once or twice a year and includes feedback from the employee's supervisor(s) about how well the employee has performed their job duties and suggestions for improvement. The appraisal also consists of evaluating the employee's strengths and weaknesses and may identify areas in which the employee could use additional training or development.
Why is Performance Appraisal required?
Performance appraisal is required to-
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provide feedback to employees on their performance and help them improve their work performance
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identify the training needs of employees and help them improve their skills
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identify the strengths and weaknesses of employees and help them plan their career growth
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required to determine the compensation needs of employees and help them get appropriate pay raises or bonuses.
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needed to document employee performance for HR records and legal purposes
Top 8 Performance Appraisal Methods
Various performance appraisal methods can be used to assess employee productivity. Some common methods include the following:
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Ranking method – In this approach, employees are ranked from best to worst according to their productivity. This is often used to compare employees against each other or to identify high and low performers.
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Forced distribution method – In this approach, employees are distributed into categories (e.g., top 10%, the bottom 10%, etc.) based on their productivity level. This can help identify areas where employees need improvement and identify high and low performers.
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Bell curve method – In this approach, employee productivity is plotted on a bell curve, with most employees falling in the middle of the curve and few at either extreme. This approach can help identify average and below-average performers and those who are exceptional.
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Critical incidents method – In this approach, specific incidents or behaviors are identified that reflect high productivity levels (e.g., meeting deadlines, taking the initiative, working independently, etc.). This helps provide specific examples of good performance that can be used for future reference.
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Behaviourally anchored rating scales (BARS) – With this approach, employee productivity is rated based on specific behaviors linked to successful performance outcomes (e.g., creativity, problem-solving ability, customer service skills, etc.). This provides a more detailed picture of employee productivity and allows for comparisons between different types of behavior.
- Top-Down Method-It is a technique used to assess employees' performances from their supervisors or managers. This approach begins with high-level objectives and works down to specific tasks or goals that must be achieved to be considered successful. This type of appraisal is often used in organizations with a clear hierarchy and chain of command.
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360-Degree Method- This technique involves obtaining feedback from various sources about an employee's performance. This approach typically includes feedback from the employee's supervisor, co-workers, subordinates, and customers or clients. The goal of this type of appraisal is to obtain a more holistic view of an employee's strengths and weaknesses.
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Multi-Rater Method- This approach uses feedback from multiple raters to assess employee performance. This approach typically includes feedback from the employee's supervisor, co-workers, subordinates, and customers or clients.
Wrapping Up
HR technology can revolutionize the performance appraisal system by making the process easier and faster. The software can automate the collection of data, making it simpler for managers to rate employees. Additionally, online tools can help employees understand their ratings and provide feedback on how they can improve their performance.
In this technologically advanced era, companies can easily manage the performance of their employees by deploying HRMS software to their systems. This software can help set KRAs of employees, track the progress of tasks in real-time, offer insights and metrics in readable formats, and much more.
