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U2IP.pptxPERFOMANCE APPRAISAL
TYPES OF PERFOMANCE APPRAISAL
PERFOMANCE APPRAISAL INTRODUCTION
Performance appraisal is based on two fundamental things
Coming up with a system that will measure the contribution of each individual to the organization
Coming up with an evaluation system that will add advancement to the operations of the organization
The science of performance appraisal is directed toward two fundamental goals: to create a measure that accurately assesses the level of an individual's job performance and to create an evaluation system that will advance one or more operational functions in an organization. Although all performance appraisal systems encompass both goals, they are reflected differently in two major research orientations, one that grows out of the measurement tradition, the other from human resources management and other fields that focus on the organizational purposes of performance appraisal. Within the measurement tradition, emanating from psychometrics and testing, researchers have worked and continue to work on the premise that accurate measurement is a precondition for understanding and accurate evaluation. Psychologists have striven to develop definitive measures of job performance, on the theory that accurate job analysis and measurement instruments would provide both employer and employee with a better understanding of what is expected and a knowledge of whether the employee's performance has been effective.
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TYPES OF PERFOMANCE APPRAISALS
Rating Scales
360 degree feedback
Performing self assessment
Management by the Objectives
Using behavioral approach
A rating scale takes certain behaviors, goals and traits and scores them on a scale. Every employee or team member is graded by the same standards giving insights about key team players not just individuals. You might not want to waste time on self-assessments if you buy into the false notion that everyone will rate themselves with high scores. Employees are very aware of where they excel and where they struggle. Getting a self-assessment gives you an insight to their thinking . This assessment style is more time consuming than other assessment methods, because it requires feedback from everyone an employee works with. The 360-degree feedback method looks at performance by gaining reviews from managers, co-workers, subordinates and other metrics conducted by sales data or customer feedback. his method of performance appraisal is common among sales staff but isn't limited to that department. MOB reviews performance based on how well the employee meets his goals. Goals could include sales numbers, deadline meetings or new certifications
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Measurement by behavioral approach
It consists of the vertical scales
Is made up of the behaviorally anchored rating scale
There is also the behaviorally observation scale.
Behavioral approach is the most commonly adopted approach and comprises of vertical scales which are based on certain parameters. Organizations use following techniques to measure employee performance:
Behaviorally Anchored Rating Scale (BARS)
Behavioral Observation Scale (BOS)
The BARS technique contains five to ten scales which are based on parameters that are mutually agreed upon by the employees. The BOS technique on the other hand is an improved version of the BARS technique and has its own advantages vis a vis the latter. This technique provides more specific data on employee performance, thus resulting in a better measure of his or her performance
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STEPS FOR THE DIFFERENT TYPES OF APPRAISALS
Establish the standards of the performance
Communication with the employee
Measuring the employee performance
Comparing to all the employee metrics
Employee feedback
Action plan development
Performance standards are not arbitrary. These standards are necessary with each job position, because the performance standards are used to fulfill the mission and vision of the company. Establishing performance standards isn't enough. Business leadership must clearly communicate these standards to employees. Clearly defined standards are easy to measure. Leaders track and regularly review how employees are performing. Employers usually set performance standards, based on experience and industry data. Every business and its employees are unique. Performance appraisals must be reviewed with employees to be effective. Sit down with each employee to review the standard expectations and provide feedback about what has been done well and what areas need improvement. Set an action plan for future performance appraisals. Build bigger goals around areas of employee success and provide specific plans of action where improvement is needed.
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SIMILARITIES AND DIFFERENCES
Similarities
They can be numerically expressed
They all involve setting goals and objectives
Differences
Some types are complex and take long time to be accomplished
Massive resources might be needed in types as compared to others
Rating scales are usually numerically based, for example using a scale of one to five with five being the best possible performance. It is also possible that rating scales simply rate things as "poor, standard, and excellent," or even as simple as "acceptable or unacceptable."As part of the self-assessment, ask employees to set their own goals for the next month or quarter. This helps managers get buy-in regarding goals from employees and also see what employee motivation is for bigger success.
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References
Lee, C. (1985). Increasing performance appraisal effectiveness: Matching task types, appraisal process, and rater training. Academy of management review, 10(2), 322-331.
Banks, C. G., & Murphy, K. R. (1985). Toward narrowing the research‐practice gap in performance appraisal. Personnel Psychology, 38(2), 335-345.
Beer, M. (1981). Performance appraisal: Dilemmas and possibilities. Organizational Dynamics, 9(3), 24-36.
Scott, S. G., & Einstein, W. O. (2001). Strategic performance appraisal in team-based organizations: One size does not fit all. Academy of Management Perspectives, 15(2), 107-116.
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