Which method of employee appraisals is normally used with other methods like rating scales and checklist?
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This preview shows page 2 - 4 out of 4 pages. 6 Yes or No responses are provided by the appraiser when ______ method is used forperformance appraisal.Weight scalesChecklistRating scalesNone of the above 7 Bell Curve method of employee appraisal compels appraisers to _____ in appraisals. Get answer to your question and much more 8 An employee reducing average call duration from five minutes to three minutes is certain tooutperform in employee appraisals based onBell Curve method Get answer to your question and much more None of the above9 ______ method of employee appraisals is normally used with other methods like rating scalesand checklist. Get answer to your question and much more 10 The major competencies that are judged in Assessment centers are intellectual capability,motivation, planning andJob knowledgePast performanceInter personalskillsNone of the above 11 360 Degree Feedback method of employee appraisals contains _____ integral components ofappraisals. Get answer to your question and much more 12 _______ forms the traditional part of 360 degree feedback method of employeeappraisals. Get answer to your question and much more appraisalTeam appraisalNone of the above13 ‘Management by Objectives’ process commences with determination of ______ goals. Get answer to your question and much more 14 Performance appraisals suffer from certain drawbacks likeHalo effectRater effectStatus effectAll of the above End of preview. Want to read all 4 pages? Upload your study docs or become a Course Hero member to access this document Tags supervisor, 360 degree feedback, five minutes, three minutes, 360 degree, 11 360 Degree A performance appraisal cycle in any company can get tricky. There are so many different methods that can be used. Hence, as a team leader or startup founder, it is your responsibility to use the right performance appraisal methods for your employees. This will in turn ensure better performance management and overall higher productivity. What can you expect from this blog? I have collated an extensive list of appraisal methods just for you! I have also included the pros and cons for each of these. So now you won’t have to worry about another performance appraisal ever again. Download an employee evaluation template for free by clicking here!
So now on to the most basic question of all, What is a performance appraisal?A performance appraisal is a systematic and timely process whereby the performance of an employee’s job is evaluated. It is also often referred to as a performance review, performance evaluation or employee appraisal. Firstly, employers use performance appraisals to evaluate the performance of employees. Following that, the report generated after is used to help in employee development by recommending the next steps. What is a performance appraisal method?These methods are tools and techniques used to evaluate employee performance. Different organizations use different methods based on what they want to get out of these reviews. Here, the person conducting the review and giving feedback is called the appraiser. On the other hand, the person receiving the feedback or appraisal is called the appraisee. Why is a performance appraisal important?There are many benefits that come out of employee reviews. Right from helping an employee and their manager understand where the employee is excelling or falling short in the work. Reviews also help plan strategies that will help develop the employee’s skill set post appraisal. Employee reviews also help boost the morale of the employee because the reviews show them you care about the employees. It can further help align the goals and ambitions of the individual employee with that of the company. Performance appraisals are a structured way of understanding which employees are meeting their goals based on key results achieved! Download an employee evaluation questionnaire now!! For FREE!This questionnaire is well researched. It covers various parameters such as
You can also rate the employee’s overall performance in an aggregated, yet easy to calculate score and rank your employees accordingly. Difference between performance appraisal and performance managementVery often I hear team leaders and managers interchange the two terms as if they were synonymous. But they aren’t! Performance management for starters is an entire process, including all of the following,
Performance appraisal as you can see, on the other hand, is just one step in the entire performance management cycle. But this one step has a lot of importance, as it affects all of the other areas within performance management. Traditional performance appraisal methods versus modern performance appraisal methodsAccording to Strauss and Sayles (George Strauss and Leanord Sayles, writers of the book ‘Behavioral Strategies for Managers), there are two major classifications of performance appraisal methods, They are,
Strauss and Sayles say that the major difference between the two is that traditional methods give more importance to the personality traits of the employee, factors such as initiative, dependability, drive, creativity and so on. On the other hand, modern methods focus on the job. This also means that modern methods place more importance on job achievements. Also, they are more objective in nature and often tend to be more worthwhile. You could also check out our blog on “OKR The Ultimate Guide: Learn how to create goals for your team” to understand how to check better goals for your team Traditional performance appraisal methodsAs we have seen previously there are 2 major classifications of appraisal methods. Here below is a list of traditional methods, and the pros and cons of each of them. Then will also help you choose which of these methods will be most useful in your organization. Straight ranking method for performance appraisalThis method is as simple as the name suggests. The employer or manager basically ranks all the employees based on their performance and various other parameters. It is one of the oldest and simplest forms of employee review. Employees are ranked from best to worst or highest or lowest on various factors. In this way, the employer understands which are the topmost-performing and lowest-performing employees in the team. For example, if there are 5 members in the team (for simplicity- A, B, C, D & E). The employer will then assign ranks to each of them. Much like this, A-3, B-2, C-1, D-5, E-4 (1 being the best and 5 being the worst). Pros:
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Essay method for performance appraisalThe essay method is also known as the free-form method. Here, the manager or the appraiser writes an essay or statement about the employee. The major focus here is to write about the strengths and weaknesses of the employee on the job. The statement also focuses on the different steps that could be taken to rectify the drawbacks in the employee’s performance. There are 2 ways in which this essay is written. On one hand, it could be single-handedly written and framed by the appraiser. On the other hand, the appraiser could work on it in collaboration with the employee in question. Pros:As the name suggests, this method is fairly unstructured. As a result, the manager is free is talk about all the factors and concerns that need to be addressed in the employee evaluation. This is also extremely personal in nature, and if used in collaboration with other appraisal methods, it can prove to be very insightful. The appraiser is not limited to a set of questions. He can also then assign varying weightage to different areas of importance and work as needed. The test allows for a great deal of freedom of expression, in terms of being able to write about the employee’s job and achievements. Cons:This method is not so easy to administer. This is because an administer of this method could find it extremely time-consuming and difficult. The essay method is also extremely subjective in nature, and not very easy to compare across different employees. The result of this test is also often limited to the language skills and abilities of the appraiser. Very often, the biggest advantage of this method- freedom of expression- becomes a challenge when the manager isn’t able to express him/herself very well. Rating scales for performance appraisalRating scales as performance appraisal methods are quite commonly used among employers. It is required to rate employees on a particular scale based on various factors and traits. Rating scales could either be numeric in nature (e.g. 1 to 5, where 5 is the best and 1 is the worst) or alphabetic in nature (a, b, c, d, e, where e= excellent, c=satisfactory and so on…). Rating scales could also have narrative options to choose from (e.g. “acceptable behaviour”, “fails to complete tasks assigned in a given time” etc.) Pros and cons:A major advantage here is that appraisers can apply this method to any job role. However, each of the variants of the rating scale come with their own set of pros and cons. Say, for example, a 3-level rating scale could be very simple to administer, but may not be complex enough to address the subtle nuances of complex jobs. On the other hand, even a 5-level scale may not be effective as very often, managers tend to have a tendency to choose the central option or drift upwards of the choices. Confidential Report for performance appraisalAs the name suggests, this form of performance appraisal is highly confidential. The immediate supervisor of the employee is usually the one who writes the report. Many times, only this particular supervisor and upper-level management have access to this report. Yup, you read that right. Even the employee whom the report is about does not get access to this review. The main focus is performance evaluation and not performance improvement. While private-sector organizations do not usually use this method, it is quite common in public companies and government organizations. Pros:
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Paired comparison method as a performance appraisal methodIn this form of appraisal, each employee in a team is compared to every single other employee in that team. Say, for example, the team is made up of A, B, C, D & E, then A is compared with B, C, D & E. The appraiser will then repeat the same thing for all the other employees. Here, the number of times an employee fares better than other team members is noted down and eventually, ranks are given accordingly. The number of pairs formed can be calculated by n(n-1)/2. In the case of the above example, 5(5-1)/2=10 pairs will be formed. Pros:
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Forced distribution method for performance appraisalWe all know what a Normal distribution in statistics is (more famously known as the ‘Bell Curve’). Here, appraisers fit all their employees within a bell curve based on their performance on the job. Appraisers have been using this method widely used in large organizations since the 1990s. In this method is it believed that employee performance within a team or an organization conforms to a bell curve. For example, it says that, roughly, 10% of your employees are really bad, 15% are satisfactory, 50% are average, 15% are good and 10% are excellent. In the most basic form of this method, managers fit employees into 5 categories, excellent, good, average, satisfactory and bad. In this case, most employees get put into the average section. The excellent employees are rewarded, while the bad ones are put into performance improvement programs Pros:
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Forced choice method for performance appraisalIn comparison to the forced distribution method, this one is pretty simple to understand and execute. An employer is given is series of statements and they must mention if those statements are true or false for a given employee. Different statements may carry varying weightage. This would depend on the importance of that statement and the overall appraisal aim. Examples of statements here could include, “The employee finishes all the tasks assigned on time” or “The employee often reaches the office late” Pros:
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Performance appraisal using the Grading scaleIn this method, the appraiser gives the employee a grade for each parameter. The grades often look like this
The evaluator judges the performance of the employee based on the job achievements across various factors and considerations. Pros:
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Checklist method as a performance appraisal methodThis is an extremely simple appraisal method as it only requires the appraiser to tick mark statements that are applicable to a given employee. In a more recent version of this method, the makers of the test assign different weightage to each statement based on how important they are. Based on the answers and the weightage, a score a calculated and assigned to the employee. Pros:
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Performance appraisal using the field review methodIn this method, the appraisee does not receive an appraisal from their immediate supervisor or manager like in most cases. Instead, a member of the HR department or from the corporate team evaluates the employee. The appraiser conducts interviews both with the appraisee as well as with their supervisor and also observes the employee as they work. This gives the appraiser an all-around qualitative yet objective view of the way the employee works. Pros:
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Critical incident method as a performance appraisal methodIn this method, the appraiser asks the employee a set of questions pertaining to bast behaviours or incidents. The appraisee then describes the incident in great detail explaining all the factors that played a role in the unfolding of that incident. The appraiser gathers information about various incidents that occurred while on the job -> Collects facts about these incidents -> Analyses the data collected -> Determine the underlying issues -> Reports the evaluation and presents potential solutions. The focus here lies not just on the hard skills but also on the soft skills of the employee. It helps define the appraisee’s knowledge, skill-sets, attitude and many other attributes that drive their behaviour. The focus is also on the employee’s ability to perform in critical situations, either where they have done excellently well or fail to do so. Pros:
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So far we have looked at all the possible traditional appraisal methods you can use in your company. Now we shall see a list of modern methods along with the pros and cons of each of them. MBO or Management by objectives for performance appraisalManagement by objectives, also very commonly called MBO, is an appraisal method where managers and subordinates usually sit together and come up with a set of goals and objectives. Once these goals are decided upon, the 2 have regular meetings and follow-ups to track progress. This method is generally used in high performing teams, by the use to setting S.M.A.R.T. goals for employees and ensuring the achievement of these goals. The focus during this process is on setting tangible goals that can be monitored. See also our blog on goal setting by clicking here -> “Goal setting for startups and SMEs: Set goals in 7 steps” Pros:
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Performance appraisal using the 360-degree feedback methodThe 360-degree feedback method of employee appraisal is becoming extremely popular within organizations. In this method, basically, the employee receives feedback or appraisal from all around i.e. 360-degrees. What this essentially means, is that, every single area the employee interacts with, one person from that area provides feedback. Say, for example, a sales representative is up for appraisal. This person will get feedback from their immediate supervisor, a peer (another sales rep they work closely with), a couple of clients the sales rep has worked with and sometimes even a subordinate. Exactly as the name suggests, the feedback mechanism is quite literally an all-around, 360-degree system. You could also check out our blog “How Balanced Scorecard [BSC] can unlock peak performance for you“ Pros:
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Performance appraisal using the 720-degree feedback methodThis method is identical to the 360-degree feedback mechanism with one single exception. Here, the 360-degree feedback is done twice. The first time, the feedback is shared with the employee with the intention of developing a performance improvement plan for the appraisee. The second time, the 360-degree review is done, the focus is on checking the success of the performance improvement plan and then better it if needed. The pros and cons of the 720-degree review and similar to that of the 360-degree review method. Performance appraisal method – Behaviorally anchored rating scale (BARS)This performance appraisal method uses a more descriptive way to rate employees. Instead of simply putting out a statement and having the appraiser choose options like excellent, above average, average, below average and unsatisfactory, the options themselves are more informative. Say for example, here, the options would somewhat look like this, Pros:
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Assessment Centre method for performance appraisalThe assessment centre method is also often used in various selection procedures to ensure that candidate is the right person for a job. This could be used in the case of inter-department transfers etc. Assessment centres combine a variety of different activities such as role-plays, interviews, group activities, presentations and so on to ensure an overall analysis of an employee. A combination of the results of all the above-mentioned activities is used to get a very deep understanding of the employee and their development in the company. Pros:
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Check out our salary increment breakup to understand how to divide salary increment across employees in a fair way!HR Cost accounting method as a performance appraisal methodJust as the name suggests- accounting- this method tracks employee performance from a monetary standpoint. How? Calculate the cost of retaining the employee (more commonly known as the employee’s CTC or cost to company). Then compare this with the value generated by the employee in terms of the service provided and the work done. Do this by considering the improvement in revenue generated during the review period, sales deals closed by the employee, increase in subscriber count and so on (obviously these are more for marketing or sales employees). This method is ideal for start-ups and small businesses, especially since one employee’s performance plays such a huge role in the growth (or lack thereof!) of the company. Pros:
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Self-AppraisalsThe name here itself is pretty self-explanatory. The employee writes their own review. So I’m going to jump straight to the pros and cons for this one! Pros:
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Performance appraisal using psychological appraisalsPsychological appraisals are generally more future-focused as opposed to reviewing the past performance of the employee. What I mean here is that psychological appraisal methods are used to understand the potential of employees, what they might be good at but their current job doesn’t showcase it. These are a series of tests and interviews conducted by trained psychologists. They include in-depth interviews, tests, discussions and so on. Pros:
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Common errors made during a performance appraisal cycleThere are many different performance appraisal methods as we have seen so far. But there are also many errors that are common to a lot of these methods. Yeah, I know, to err is human! But as a small business owner, manager or team leader, you need to make sure you do your best for the sake of your employees and your company. And, being aware of these errors is the first step toward rectifying them. So, here are some of the errors and biases you must be aware of during an employee review process. StereotypingStereotyping occurs when a bunch of concepts or ideas get attributed to a particular set of people over a period of time. These ideas then play a role and affect the way people behave towards these sets of people. Stereotypes could be based on race, gender, religion etc. In the case of performance appraisals, the appraiser can very easily let such a bias come in the way of honest feedback. Halo effectWhen someone says halo, you automatically think of an angel, no? Pretty much in the same, the halo effect implies that your perception of a person always tends to be on the positive side. Usually, this happens when an appraiser notices that an employee is doing very well in one aspect of their job, and generalises it to everything else they do. You think better of them than they actually are. This could translate into overly positive feedback and reviews. So, employees will never truly understand how they are performing. Single deficiency focusThis is also often referred to as the “horns effect” exactly the opposite of the “halo effect”. As the name very clearly says, here, the appraiser gets hung up on a single problem, error, deficiency on the appraisee and generalises that across all areas. Distribution errorsWhile the halo effect and the single deficiency error talk specifically about biases that affect a single employees review, the distribution error affects the overall review of all the employees. Let’s see how distribution errors play a role in performance appraisals. The overall reviews get skewed in this way as shown in the graph. There are 3 types of distribution errors as mentioned below: Severity error: In this case, the appraiser tends to be extra harsh with his/her reviews. All the employees get below-average ratings. Centrality errors: Here, all the reviews tend to be average. Most of the employees get average feedback. The problem here is that the poor performers get feedback better than they deserve, while top performers don’t get good enough reviews. Leniency errors: Leniency errors refer to when a manager gives all the appraisees good or above-average reviews/appraisals. Recency errorsThis is a very common error made by managers and supervisors during performance appraisals. In this case, the appraiser’s reviews get affected based on any event that may have occurred in the recent past with the employee in question. Say, for example, if an employee recently broke their own sales target which resulted in a very high number of new clients for the company, the appraiser will let that one incident impact the entire review, leading to an overall positive response. Whereas on the other hand, if the same employee were to get into an argument with another employee before the performance appraisal, then that would negatively affect the overall review. Attribution errorAttribution is a process whereby, a manager tends to make assumptions about an employee’s motives. This leads to extremely subjective responses by the appraiser for the appraisee. An example of this situation would be, if an employee gave a negative answer for something related to the job, the manager would assume that the employee has negative feelings towards his/her job. Choosing the right performance appraisal methods for your small businessDifferent methods are targeted toward different results. How you select which appraisal method is best for your company depends totally on the kind of reviews you’re looking for and the end goal. Factors such as
Employee appraisal and employee performance management and key elements of employee engagement. So, selecting the right appraisal method also becomes very important. Once you have selected the method or methods best suited to your company, you need to implement it well and ensure that a robust performance improvement plan follows the appraisal. But be sure to reward your top-performing employee too 😉 SummaryPerformance appraisal Methods – FAQsWhat are the 5 most common methods of performance appraisal methods in HRM? The most common methods of employee performance appraisal are 1. 360-degree feedback 2. Rating scales 3. Grading scales 4. MBOs i.e. Management by objectives 5. Self-Assessment Click here to see the whole list of modern and traditional performance appraisal methods What is a performance appraisal and what are its types? Performance appraisal is basically when a manager or supervisor evaluates an employee’s performance on their job over a period of time. Appraisal methods can typically be classified into two categories- Traditional methods and Modern methods of performance appraisal. What is the most commonly used performance appraisal method?Ratings Scale. A ratings scale—or grading system—is probably the most commonly used performance review method. This method is based on a set of employer-developed criteria—which can include behaviors, traits, competencies, or completed projects—against which employees are judged.
What are the methods of employee appraisal?Six modern performance appraisal methods. Management by Objectives (MBO) ... . 360-Degree Feedback. ... . Assessment Centre Method. ... . Behaviorally Anchored Rating Scale (BARS) ... . Psychological Appraisals. ... . Human-Resource (Cost) Accounting Method.. Which method of employee appraisal is generally found more suitable for the managers?A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles.
What are the 4 types of appraisal?The most common types of appraisal are:. straight ranking appraisals.. grading.. management by objective appraisals.. trait-based appraisals.. behaviour-based appraisals.. 360 reviews.. |