3 Performance Appraisal Methods That Work

There are three principal performance appraisal methods that work well and are easy to use. In this post, I’ll show you what these are and the pros and cons of each of the different methods.

The first approach to use is applying a rating scale during the appraisals. Many companies choose to use this by establishing a grading system for evaluating employees based on communication skills, technical ability, leadership, motivation, etc. There are also many standardized grading systems that can also be applied or modified read this approach gives you a very egalitarian way of assessing all of your employees. Anybody who is not quite up to mark can be put on a productivity improvement plan to start raising their grades (in much the same way as schoolchildren are).

The second approach involves using 360° feedback from peers, colleagues, direct reports and supervisors of the actual worker. This is however very time-consuming task as it requires a HR representative or manager to interview all of these different people. The worker is assessed based on a couple of different areas including technical skills, performance, timeliness, etc. Of all the performance appraisal methods, this approach does help reduce the chances of bad reviews from individual employees a second persons promotion potential.

The final approach is management by objectives. This is one of the more common performance appraisal methods used in modern businesses and focuses on setting goals for individuals to be achieved within a set time period. Critically, these goals should be achievable and collaboratively set between the manager and the worker themselves. This gives the employee more ownership of their work and allows the manager to more accurately see if the actual objectives have been achieved by the set deadline. This approach works quite effectively with managers of salespeople and individuals where productivity improvement may be essential in order to gain promotions.


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