Performance Appraisal Methods That Work


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There are three sample performance appraisal methods that are easy to use and works very effectively in both small and large companies. This post takes a look at three of the most useful approaches used in most modern businesses.

Many companies use management by objectives since it has been long established as a key effective appraisal method since the 1950s. Managers get to collaborate with their employees at the start of the year by setting out what their objectives should be (which should be achievable and given specific deadlines). Managing salespeople using this approach is often favored as it clearly defines what measurable goals they have to achieve. If targets are not hit or the objectives have failed then is easy to identify what productivity improvement techniques need to be employed.

Large companies have a preference however for using a rating scale or grading system. This is where an in-depth grading scale is provided for a number of different traits or characteristics for employees (e.g. listening skills, communication abilities, technical skills, teamwork, etc.). This technique can be rapidly used for evaluating a large number of employees. It can however be quite subjective based on that person’s impression of how the employee was performing so does require some training of management on how to use it. Employees being appraised also be easily compared using the grading system.

Consultancy firms and smaller companies have a preference for 360° feedback approach. These performance appraisal methods involved interviewing the colleagues, supervisors and clients working directly with the person being appraised. A broad range of views are sought as regards the person’s performance and ability from the various interviewees. This approach is great for consultancy houses where individuals may switch from project to project quite often during the year. It does however require a large amount of overhead to perform all the various interviews.


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