{"id":5119,"date":"2019-08-01T12:08:29","date_gmt":"2019-08-01T12:08:29","guid":{"rendered":"https:\/\/blog.synergita.com\/?p=5119"},"modified":"2019-08-01T12:08:29","modified_gmt":"2019-08-01T12:08:29","slug":"employee-performance-appraisal-methods","status":"publish","type":"post","link":"https:\/\/newtest.synergita.com\/blog\/employee-performance-appraisal-methods\/","title":{"rendered":"An Essential Guide to Modern Performance Appraisal Methods"},"content":{"rendered":"\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>The most basic problem is that performance appraisals often don\u2019t accurately assess performance. <\/strong><\/p><\/blockquote>\n\n\n\n<p style=\"text-align:right\">W. Edwards Deming<\/p>\n\n\n\n<p>Ideally, performance appraisals should help\norganizations understand how well their employees are contributing to the\noverall growth. But, a staggering 82 percent of the companies reported that\nperformance appraisals are not worth their time and effort. <\/p>\n\n\n\n<p>The focus is now shifted to modern\nperformance appraisals and continuous performance management. Organizations are\nreinventing performance management and experimenting with hybrid performance\nappraisals techniques that work well for their business, culture and HR practices.\nDigital HR empowers them with advanced software tools to collect feedback data\nfrom all levels that bring necessary clarity and insights to deliver better\nperformance management. <\/p>\n\n\n\n<p>The main objective of Performance\nmanagement is driving <strong><a href=\"https:\/\/www.synergita.com\/features\/employee-engagement.html\">employee engagement<\/a><\/strong>,\nemployee development and business growth. The main objective of performance\nappraisal is to make conclusive decisions on pay revision and promotion of\nemployees. Both are interconnected as employee development includes both\nacquiring new skills and getting salary hike and moving to new job positions. With\nthe redesign of employee performance management, organizations adopt modern\nappraisal methods to measure and evaluate employees\u2019 performance. <\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Modern Performance Appraisal Methods<\/h3>\n\n\n\n<p>The most widely used modern performance\nappraisal methods are:<\/p>\n\n\n\n<ul><li>Management by Objectives (MBO)<\/li><li>360 Degree Feedback<\/li><li>Attribute Focused Appraisals <\/li><li>Behaviorally Anchored Rating Scale (BARS)<\/li><\/ul>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Management by Objectives (MBO)<\/h3>\n\n\n\n<p>Peter Drucker introduced \u2018Management by\nObjectives and Self Control\u2019 in 1954. This goal-setting approach is the basis\nof all modern-day paradigms such as SMART goals, Balanced Scorecard and OKR\nbased performance appraisals. <\/p>\n\n\n\n<p>In this MBO method, managers and employees\ntogether identify common goals, define areas of responsibility, results\nexpected from each employee and use these measures as guides to business\noperations and evaluate the contribution of employees.<\/p>\n\n\n\n<p>MBO method endorses the modern-day\nmanagerial practice of coordination between managers and reports to plan,\nexecute, guide, review and control the business operations. <\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\">In the performance appraisal context, MBO is implemented in four main steps<\/h4>\n\n\n\n<ol><li>Defining the goals of each\nemployee<\/li><li>Determine the functional\nparameters such as required resources, timelines, etc.<\/li><li>Comparing the actual metrics\nwith target <\/li><li>Periodic reviews to analyze the\noutcome<\/li><\/ol>\n\n\n\n<p>Advanced <strong><a href=\"https:\/\/www.synergita.com\/\">performance management software<\/a><\/strong>\nhelps organizations execute these steps efficiently. <\/p>\n\n\n\n<p>In the first step, managers and employees\njointly establish goals for a specific period. Generally, in goal setting the\ntop-down approach is followed and individual employee goals are aligned with\nbusiness objectives. In this method, employees get clarity on what is expected\nof him and how his efforts are transformed in achieving business growth.<\/p>\n\n\n\n<p>In the second step, functional parameters\nare identified and milestones are set. It helps to determine the necessary\nresources, duration, dependencies and other factors that influence the\nachievement of goals. Employees and managers are better prepared to set forth\nthe journey of reaching the target.<\/p>\n\n\n\n<p>In the third step, actual and targeted\nmetrics and milestones are compared. It helps discover whether the employee is\non the right track or deviated from the established goals. The comparison\nenables managers and employees to do introspection on the progress. If it is\non-track, they can analyze the favorable factors that can be leveraged to\nenhance the progress further. If deviations are found, they can explore what\nneeds to be done to bring it back on track. <\/p>\n\n\n\n<p>During periodic reviews, managers and\nreports can share constructive feedback to improve the overall progress. They\ncan deliberate on how to improve future performance and achieve the goals\nwithin the agreed timeframe. <\/p>\n\n\n\n<p>Employees feel more involved in this\nprocess and highly satisfied with the transparent appraisal parameters. It\nimproves collaboration between managers and reports. The performance appraisal\nis based on performance metrics and verifiable results.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">360-Degree Feedback<\/h3>\n\n\n\n<p>As the name suggests, 360-degree feedback\nconsists of getting employee feedback from persons above, below and working\nalongside him. In the case of employees working in customer service or with\nclients, feedbacks from external stakeholders can also be taken. 360-degree\nfeedback helps us get a collective unbiased understanding of the employees\u2019\nperformance and competencies. Variations of 360-degree feedback method are\nwidely used in major business corporations.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">The main components in 360-degree feedback include<\/h3>\n\n\n\n<ol><li>Self-appraisal<\/li><li>Appraisal by superiors<\/li><li>Appraisal by peers<\/li><li>Appraisal by subordinates<\/li><li>Appraisal by external stakeholders<\/li><\/ol>\n\n\n\n<p>Self-appraisal helps us know what employees\nfeel they are good at or where they need to improve, their aspiring career\npath, etc. Managers and seniors give constructive feedback that helps\naccelerate employees\u2019 development and bring perspective into their aspiring career\npath. Feedback from subordinates highlights how well the employees are guiding\nand motivating the juniors, their working style, etc. Peers can shed light on\nemployees\u2019 collaborative nature, their inter-personal skills and work\ncommitment.&nbsp; External stakeholders\nusually have a word or two about quality of service, timely delivery, etc. <\/p>\n\n\n\n<p>We might miss to identify our strength or\nweakness. 360-degree feedback helps us to overcome the blind spots and\nunderstand us better from a collective view. For organizations, it gives an\nall-inclusive portrayal of an employee \u2013 their potential, performance level,\ninterpersonal skills, leadership qualities and collaboration. Also, it helps\ncompanies eliminate raters\u2019 bias creeping into the performance reviews. <\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Behaviorally Anchored Rating Scale (BARS)<\/h3>\n\n\n\n<p>The BARS method evaluates employees on\nbehaviors that are specific to the employees\u2019 job position. The most important\njob responsibility or key tasks are identified. For each task determine the probable\nbehaviors which are anchored to quantitative ratings. These anchor points are\ncollected using Critical Incident Techniques (CIT). The employees\u2019 behavior on\neach task is assessed and the corresponding rating is given.<\/p>\n\n\n\n<p>For instance, the BARS of the first\nresponse task of the customer support team handling the support tickets might\nlook like this.<\/p>\n\n\n\n<p>5 \u2013 Exceptional Performance: Send the first\nresponse within 15 mins with the accurate solution<\/p>\n\n\n\n<p>4 \u2013 Excellent Performance: Send the first\nresponse within 15 mins with the timeframe to fix the problem<\/p>\n\n\n\n<p>3- Competent Performance: Send the first\nresponse within 15 mins <\/p>\n\n\n\n<p>2 \u2013 Marginal Performance: Send the first\nresponse within the day<\/p>\n\n\n\n<p>1 \u2013 Unsatisfactory Performance: Didn\u2019t send\nthe first response<\/p>\n\n\n\n<p>BARS approach is benefitted by the\ncombination of both qualitative and quantitative data. It is individualized,\nfair and easy to evaluate.&nbsp; The evaluation\nis based on the behavior and performance of the employees.&nbsp; Employees can learn his performance standard\nand what needs to be done to improve their performance. <\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Attribute Focused Appraisals<\/h3>\n\n\n\n<p>This appraisal method focuses only on\nemployees attributes such as reliability, punctuality, adaptability, team\nplayer, etc. Usually, a questionnaire or checklist is prepared with rating\nscale range and an option to provide feedback. This type of appraisal is more\nsuited to assess employees in non-skilled jobs where the impact of individual\nperformance is very less. Self and managers\u2019 rating and feedback are sought on\neach attribute and overall rating is calculated. Attribute focused appraisals\nare highly prone to rater\u2019s bias as there are no defined measures available to\nvalidate the manager\u2019s rating. <\/p>\n\n\n\n<p>All performance appraisal approaches have inherent\npros and cons. HR teams need to dig deeper to zero in on the right approach\nthat suits the business and serves their purpose. The appraisal methods you\nchoose should assess the employees\u2019 performance fairly, provide you valid data\nthat aids in making compensation revision and job promotion decisions and most\nimportantly should give employees clarity on areas they need to improve. <\/p>\n\n\n\n<p>Looking to automate your employee performance\nappraisal? Try Synergita, the award-winning continuous employee performance and\nengagement software<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The most basic problem is that performance appraisals often don\u2019t accurately assess performance. W. Edwards Deming Ideally, performance appraisals should&#8230;<\/p>\n","protected":false},"author":20,"featured_media":5123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[30,54,251,252,110,24],"ppma_author":[208],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>An Essential Guide to Modern Performance Appraisal Methods<\/title>\n<meta name=\"description\" content=\"Performance appraisals are not conducted the way they used to be. 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