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Three top performance appraisal methods you can use in your company!

by , 28 May 2015
Performance appraisal management uses several means for getting the best possible results. To determine what will work for your company, you need to analyse and understand what works for your structure and what applies to a specific business.

Nevertheless, most of these methods bring good results to almost any company and besides implementing the process in a proper way, the follow-up is essential.

Here are three top performance appraisal methods you can use to have better performance results in your company!

1. Critical incident method

This particular method involves identifying and describing specific incidents where employees did something really well or that needs improving during their performance period.

According to 4hrm.info.com, here are the stages such a process implies:

• Each employee will be evaluated as such and one's performance appraisal will be based on the logs that are put in the evaluation form.
• The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behavior.
• At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers' performance.
• The critical incidents file of performance appraisal is a form of documentation that reflect all data about employee performances.

Disadvantages of critical incident performance management:

There are some limitations you may find yourself deal with when applying this performance management strategy. These include:

• Critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates.
• Negative incidents may be more noticeable than positive incidents.
• It results in very close supervision which may not be liked by the employee.
• The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it.
• The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session.

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2. Essay Evaluation method

When using this process of performance appraisal, managers/supervisors are required to identify the strong and weak points of their staff's behaviour.

Keep in mind that this is a non-quantitative technique.

Here's what this implies:

• Job knowledge and potential of the employee;
• Employee's understanding of the company's programs, policies, objectives, etc.
• The employee's relations with co-workers and superiors;
• The employee's general planning, organizing and controlling ability;
• The attitudes and perceptions of the employee, in general.

Like the method before it, essay evaluation comes with some of the disadvantages too:

• Manager / supervisor may write a biased essay.
• A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker.
• Also, essays take a long time which makes it uneconomical from the view point of the firm, because the time of a rater is costly.
• Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee.

3. Behaviorally anchored rating scales (BARs)

The third appraisal method assumes making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance.

It uses scales and the critical incident method (see no. 1)  to assess performance of the employees:

Classification of behaviorally anchored rating scales:

• Behavioral observation scales
• Behavioral expectations scales
• Numerically anchored rating scales

Rating scales

Each behavior rates on a scale as follows (you can set scales depend on your requirements)
• Extremely poor (1 points)
• Poor (2 points)
• Below average (3 points)
• Average (4 points)
• Above average (5 points)
• Good (6 points)
• Extremely good (7 points)

While this is very useful and exact, it's still rather difficult to apply the method because you need to define very clearly what a good level is, an average one and so on.

At the end of the day, no matter what appraisal method you choose, it will most definitely help you know your company and employees better and know what changes to make in the future based on the newly gathered information!

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