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Consider these five things when deciding on your company's performance appraisal approach

by , 14 July 2014
There are two different approaches you can use when assessing employees performance with the 360-degree appraisal process.

The 360-degree appraisal process can range from informal and unstructured to formal and structured.

An informal approach is when you (the manager) elicit and integrate feedback from appraisers before the feedback discussion. A more formal approach involves sending out questionnaires or using a computerised system to get feedback and to integrate results.

Take a look at the five things you must consider before you decide on your performance appraisal approach so you can ensure your performance assessments are effective.

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Five things you must consider when deciding on your performance appraisal approach

Consideration #1: You must decide on the purpose of using this approach, says the Practical Guide to Human Resources Management.

For example, do you want to appraise and get feedback on performance or do you want to assess value-based behaviour?

Consideration #2: Be very careful that your instrument is valid (measures what it's supposed to measure) and reliable (consistent in its measurements over time).

Note: The more formal the process, the more employees will perceive it as reliable and fair.

Consideration #3: Will you get feedback anonymously?

Note: The more anonymous the process, the more likely it is that appraisers will be open and honest in their feedback. This will obviously depend on your organisational culture and maturity levels.

Consideration #4: Who will consolidate and provide the feedback? This is especially important if you're assessing an executive.

For example, will it be an external consultant, an internal but neutral individual, the CEO, the executive himself, or will the computerised system do this all automatically?

Consideration #5: Does the system work

If the system works as it's supposed to work, the feedback you get from appraisers should assist in identifying training and development needs and provide suggestions on how to improve performance.

There you have it: Considering these five things when deciding on your 360-degree performance appraisal approach to ensure you get the most from your assessments.

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