Technic of Performance Appraisal
According to (Muraly, 1994 cited in
Mukherjee, 2012, p.140). Negative impact of favorable evaluation directly pave
the way for raising suspicions in the minds of the employees. The main goal of
the PA in organizations is to improve employee performance (Murphy and Cleveland,
1991 cited in Dijk and Schodl, 2015, p.716).
Performance Appraisal can be generally categorized into two groups: Traditional (Past oriented) methods and Modern (future oriented) methods. Other researchers have classified the existent methods to three groups; absolute standards, relative standards and objectives . (Turgut & Mert, 2014).
DIFFERENT TECHNIQUES OF PERFORMANCE APPRAISAL
Two types of measures are used in performance
appraisal: Objective measures, which are directly quantifiable and Subjective
measures which are not directly quantifiable.
Performance Appraisal can be broadly classified into two categories as Traditional Methods and Modern Methods (Turgut & Mert, 2014).
Traditional Methods
Traditional Methods are relatively older methods of
performance appraisals. This method is mainly based on studying the personal qualities
of the employees. It may include knowledge, initiative, loyalty, leadership and
judgment.
Ranking Method
In order to Dessler. (2011), ranking
method is mainly based on ranking of employees from best
to worst on a particular trait, choosing highest, then lowest, until all
ranked
Graphic Rating Scales
Paterson developed
a graphic scale
to provide the reliability, consistency
over time, usefulness
and practicality. Bradshaw
in 1931 discussed improvements to the graphic
rating scale that
included “behaviorism” to anchor the
scales and help better illustrate the trait. In 1972, Flynn told
that the five to nine scale points result in the highest quality of ratings. According to Dessler. (2011), Graphic Rating
Scale is a scale that lists a number of traits and a range of performance for
each. The employee is then rated by identifying the score that best describes
his or her level of performance for each trait.
Critical Incident Method
The Critical Incident Technique is defined as a set of
procedures designed to describe human behavior by collecting description of
events having special significance and meeting systematically defined criteria.
Identification of the critical incidents during task performance can be a individual
process or a mutual process between user and evaluator. According to (Dessler
et.al, 2011). Critical Incident method is keeping a record of
Checklist method - Performance
appraisal method that consist of a list of items, each of which describes a
characteristic of an organization or an event The attribute may or may not be
present, or it may be present to varying degrees measured on a simple scale, simply yes no method (Amin,
et al., 2015).
Modern Methods
Modern Methods were devised to improve the
traditional methods. It attempted to improve the shortcomings of the old
methods such as biasness, subjectivity.
Management by
Objectives
It comprises of three building blocks: object
formulation, execution process and performance feedback. the system approach to
MBO(SAMBO).SAMBO comprises seven elements: strategic planning and hierarchy of
objects, setting objectives, planning for action, implementation of MBO, control
and appraisal, subsystems, and organizational and management development
(Turgut and Mert, 2014).
Behaviorally
Anchored Rating Scale (BARS)
BARS were introduced by Smith and Kendall in 1963 with
the attention of researchers concerned with the issue of reliability and
validity of performance ratings. Behavioral anchor scales are more informative
than simple numbers. Behaviorally anchored performance dimensions can be operationally
and conceptually can be distinguished from one another. Rater will act as
observer not the judge. BARS help rater focus on specific desirable and
undesirable incidents of work behavior which can serve as examples in
discussing a rating. BARS use behavioral statements or concrete examples to
illustrate multiple levels of performance for each element of performance
(Turgut and Mert, 2014).
Humans Resource Accounting
The concept of human resource accounting was first
developed by Sir William Petty in 1691.But research into true human resource
accounting began in the 1960 by Rensis Likert. Prof. Flam holtz defines human
resource accounting for people as an organizational resource. The main theory
underlying the HRA is: The people are valuable resources of an organization or
enterprise, information on investment and value of human resource is useful for
decision making in the organization (Tambunan et al., 2022).
360-Degree Appraisal
“Feedback from multiple sources or ‘360 degree feedback’ is a performance appraisal approach that relies on the input of an employee’s superiors, colleagues, subordinates, sometimes customers, suppliers and/or spouses” (Yukl and Lepsinger, 1995).Many companies are combining various sources of performance appraisal information to career create multirater or 360-degree-appraisal and feedback system. 360-degree feedback is intended to provide employees with as accurate a view of their performance as possible by getting input from all angles. Supervisors, peers, subordinates, customers. Although a360-degree feedback can be useful for both developmental and administrative purposes, most companies start with an exclusive focus on development. Employees may be understandably nervous about the possibility of every one “ganging up” on them in their evaluations. For example, a Chicago company, allow managers and employees to develop performance plans, goals, and objectives, and then track their progress over time. Managers can see all of an employee’s goals and action steps on a single screen, and self-appraisals and multiple-rater reviews can be combined into a 360-degree format. After rating an employee’s performance on each goals, raters can provide summary comments in three in three categories(Snell, Bohlander,andVohra,2012).
In conclusion, each method has advantages and disadvantages which make appraisal method more precise and candid by using of several methods. In order to decision making and determining the best appraisal method, a question should be answered: “The best for what?” It means that the appraisal method should be achieve to which goal or measure which performance? Therefore the manager should determine organization’s goals, objectives and expectations of performance appraisal. Performance appraisal objectives are usually evaluating and nurturing. On the other hand, an effective appraisal method should be reliable, trustworthy and free of error. Moreover, it can be able to compare employees between them and organization’s parts (Jafari, Bourouni and Amiri, 2009,p.95).
List of references
Aggarwal, A. & Thakur, G.S.M. (2013) Techniques
of Performance Appraisal-A Review International Journal of Engineering and
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Amin, M. R., Hossain, M.
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and Gary, (2011) Human Resource
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Hall
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out of 360° feedback. Training, 32(12), pp.45-50.
Hi Sanath, 360 degree appraisal tool can be developed to solicit feedback that is directly linked to the organisation’s core competencies (Patricia, 2019).
ReplyDeletePerformance evaluation/appraisal is the continuous process of obtaining, examining and recording information about the comparative worth of an worker. The focus of the performance evaluation is measuring and enlightening the actual performance of the employee and also the future potential of the employee. Performance appraisal and evaluation is identified as the identification, Measurement and management of human performance in organizations and provides individuals with useful feedback and coaches them to higher levels of Performance (Gomez-Mejia, 2007)
ReplyDeleteHi Sanath, Organizations use performance appraisal systems to gauge the productivity and effectiveness of their workforce, every employee approaches their task differently, so a performance appraisal system is necessary, Performance appraisals frequently lead to improvements in job output, expectations for communication, identification of employee potential, and support for employee counseling (Aggarwal & Thakur, 2013).
ReplyDeleteHi Sanath.Armstrong (2020), stated that Employee Performance management is the continuous process of improving performance by setting individual and team goals that are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills, and abilities of people (Armstrong, 2020). Some of the main performance measurements are productivity, efficiency, effectiveness, quality and profitability
ReplyDeleteGreat Content , Further i need to add One of the main goals of performance appraisal is to motivate employees toward higher levels of performance (Kuvaas, 2007),However, for many workers, performance appraisal is not a source of motivation (Adler et al., 2016; Murphy, 2019).
ReplyDeleteThank you very much for your valuable comment Insaff, and sharing additional knowledge. Furthermore, Organizations need to motivate their employees to achieve highest performance and organizational goals. Actually, motivation is the best tool for peak performance (Said Abdi Mohamud, 2017).
DeleteHi Sanath, Great comprehensive article. I would like to add another point on emerging method of Performance Appraisal which is 720 degree evaluation. The next level of 360 degree where the 360 degree method is practiced twice (Jency, S., 2016).
ReplyDeleteThank you very much Dileka, sharing additional knowledge. Furthermore to the 360-degree feedback is a combination of giving feedback and evaluating performance in its unique character (Mandal, 2002). This technique has been widly used by many organizations and the popularity of the approach has been increasing year by year (Waldman and Atwater, 1998). The effectiveness of the 360-degree feedback procedure as a development instrument is rightly proven and accepted by experts (Tyson and Ward, 2004).
Delete