The purpose of performance appraisal is to determine whether an employee is meeting the expectations of their job. This can be done through a formal process, or it can happen informally through regular conversations with the employee. There are several performance appraisal methods that we are going to explore in this article.
What is Performance Appraisal?
Performance Appraisal is an important process that helps to improve the employee's performance. It is also called performance management, appraisal of performance, or performance review. Performance appraisal is the systematic process of collecting information about an employee's job performance and describing it in a way that will be useful for making decisions about pay, promotion, training, and other rewards.
Why Performance Appraisal Is Important?
Performance appraisal helps organizations stay on track and reach their goals by ensuring that employees are working to the best of their ability. It also helps employees understand what's expected of them so that they can better meet those expectations in the future. The purpose of a performance appraisal is to help employees improve their work and provide feedback on how they are doing so they can do better next time around.
Performance appraisals are important because they:
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Help employees grow in their jobs, thereby improving their productivity;
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Provide managers with valuable information on how well their teams are performing;
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Allow organizations to identify areas where extra training may be needed;
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Help managers allocate rewards or bonuses fairly among employees based on performance levels.
What Are the Performance Appraisal Methods?
There are many different ways to conduct performance appraisals. Some of these methods include
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Performance Review: This method involves analyzing an employee’s performance over a period of time, usually one year. For example, if you want to review an employee’s performance every six months, this would be considered a bi-annual review. The goal of a performance review is to provide feedback about how well an employee is performing in relation to their goals as well as any issues they may be having at work such as conflicts with other coworkers or problems completing tasks on time.
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Critical Incident Technique: This method involves identifying critical incidents (or moments) during which you noticed something especially good or bad about how someone performed their job duties. Then you write each incident down in detail and describe what happened before it occurred so you can see patterns emerge over time
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Management by Objective (MBO) - this method involves setting goals for employees and having them work towards those goals through their own efforts
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Forced Ranking - this method rates employees based on performance, then ranks them based on those ratings so that they can be rewarded accordingly
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Job Analysis and Position Description (JAPD) - this method involves giving employees feedback on how well they're doing their job and what areas need improvement so that they can improve those areas next time around!
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Self-appraisal - Self-appraisal is when an employee evaluates their own performance by setting goals for themselves and reporting on how well they are doing against those goals. This method is often used when employees are new to a company or position because it requires little effort on the part of management. Self-appraisal can also be used if there are no other methods available due to time constraints or budget restrictions (such as when working remotely).
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360 Degree Feedback - 360-degree appraisals involve getting feedback from multiple people within an organization, including managers, peers and subordinates. The performance appraisal method allows employees to get multiple perspectives on how they are perceived by others within the company which can help them identify areas where changes might be necessary in order to improve their performance at work.
Conclusion
Every method is unique in itself and it totally on your organisation's decision on which method they want to adopt. We recommend you implement a complete HCM suite-HROne that can offer you a performance appraisal module to track performance with various matrices and dashboards for better understanding.
