Performance appraisal systems help employers assess job performance of their employees and work out a balanced system of promotions and salary increases. In addition, appraisals can boost employees improve performance and help companies in planning or rearranging job functions to suit the employee or job profile.
There are several appraisal systems when it comes to choosing the right method for each employee or even department within your organization.
Here are a few types of performance appraisal methods:
Behaviorally Anchored Rating System (BARS)
The behavior-based system judges employees’ actions by means of a rating scale that measures specific behaviors. The rating scales used in this evaluation system include behaviorally anchored rating, graphics rating, forced choice, and mixed standards.
Graphics rating measures behaviors on a scale from “poor” to “excellent”. Behaviorally anchored scales judge specific actions to score the employee. The forced-choice ranks performance such as “excellent”, “above average”, “average,” “needs improvement”, or “poor,” Mixed standards combines forced-choice scale with manager comments.
Characteristic-based performance appraisal
The characteristic-based focuses on qualities like dependability, helpfulness, and punctuality. The managers use a rating checklist with options such as needs improvement, satisfactory, or excellent. This system is used with customer care departments. This type of appraisal is subject to manager’s personal bias with most of the employees receiving a satisfactory rating, making this system less reliable and accurate.
This method evaluates employees against each other, rating them from the most excellent and bad. It is usually easier to rank the best and the worst performers, but ranking the averages ones can prove harder. This rating system can be used in a customer care center. Although the rating standards are specific, they may be biased due to the customer’s input. This bias makes this method an unreliable tool for assessing specific employees.
Checklist and Grading
The checklist method focuses on a list of yes or no questions. The grading method has letter A to F that grade employees in different categories. In these methods, specific standards are predetermined and established as categories to assess.
The unstructured method is based on the subjective opinion of the manager. There is no objective rating scale involved. This method is unreliable as it is dependent on the personality of the employee.
The paired assessment method evaluates each employee with all the other employees in a group. This is a reliable system as it focuses on systematic assessment and evaluation. Paired assessment is used in the case where one only employee has to be promoted. Every employee is assessed and compared against the others on different factors until one attracts attention.
Management by Objective (MBO)
This is a modern evaluation method that tries to eliminate the bias present in the traditional assessment methods. MBO assessments require the manager and the employee to agree on certain goals prior to the evaluation. This process focuses on setting goals and gaining constructive feedback successfully.
This method requires a company to survey supervisors, co-workers, subordinates, as well as customers, about employee’s actions. The multiple feedbacks offer unbiased views on actions and behavioral traits. This method allows employees to establish goals for self-improvement, which will eventually benefit the company and advance their career.
This method evaluates the emotional stability, intellectual ability, logical skills and other cognitive traits of the employee by means of the objective psychological assessment process. This evaluation is useful in developing and preparing training processes and placing employees on the right team.
Performance appraisals bring to light ineffective business practices. Effective appraisal systems help companies as well as employees through the implementation of appropriate training and timely feedback.