Methods of Employee Performance Evaluation

 

Employee Performance Evaluation

According to Islam & Mohd Rasad (2006), the purpose of employee performance evaluation is to assess everyone’s contribution to the company. Individual performance against organizational goals determines whether the business organization meets its objectives. The goal of employee performance evaluation is not only to manage the specific expectations that employers have of their employees, but also to create a positive working environment that enables and supports employees' self-motivation to perform efficiently and effectively, so that all parties involved can achieve a win-win situation (Šišinački, et al., 2017).

The Objective of Performance Appraisal

As discussed by Singh, (2015) the objective of performance appraisal is to;

·         Promote Employees

·         Confirm employees from probation period.

·         Training and development purposes.

·         Compensation review

·         For HR evaluation programs

·         Improve communication between manager and the employee.

Criteria for assessing Performance

Bernardin and Russell (1998) have recognized the seven principles listed below for evaluating an employee's performance.

1. Quality - The worth of the individual's or team's commitment. This can include task completion quality, interaction, and deliverables.
2. Quantity - Work quantity handled by the Employee in the origination. This can be defined and undefined work.
3. Interpersonal Impact - The ability and way a person interacts with others. In the business world, the term refers to employees' ability to collaborate with others while performing their duties.
4. Cost-Effectiveness - Cost-benefit analysis is a type of economic analysis in which the relative costs and outcomes of various action plans are compared. This gives monetary value to measuring effectiveness.
5. Timeliness -Assess whether the employee has completed the work within the set time.
6. Need for Supervision – Amount of supervision required by the employee while working.
7. Community Service-How the employee will interact with others in the workplace. This can be volunteer work.

Although Bernardin and Russell, (1998) recognized the seven principles of performance evaluation. WNS Global Services (Pvt) Ltd evaluates employee performance using minimum metrics. Such as, work quality, average handling time (AHT) of a given task, and utilization of 8 hours per day.

Performance Appraisal Methods

A variety of methods have been developed to assess the quantity and quality of performance appraisals. Each method is effective for specific purposes and for specific organizations. Except where they relate to the specific needs of the organization or an employee, none should be dismissed or accepted as appropriate ( Dagar, 2014).

According to Turgut & Mert,(2014) there are two types of performance review methods: traditional methods and modern methods. Given that some methods of performance evaluation are complex and necessitate a thorough understanding of critical techniques. Sayles and Strauss, (1977) says several organizations used the traditional method to evaluate their employees' job performance. In some cases, the traditional method will result in unsatisfactory decisions. 

Table 1.0: Performance Appraisal Methods

Performance Appraisal Methods
Traditional	Modern
Ranking method	Management by Objective (MBO)
Paired Comparison	360-Degree Feedback
Grading Scale	Assessment Center Method.
Checklist method.	Behaviorally Anchored Rating Scale (BARS)
Easy evaluation method	Psychological Appraisals.

 

Source: (Aggarwal & Thakur, 2013)

References

 

• Dagar, A., 2014. Review of Performance Appraisal Techniques. International Research Journal Commerce arts science, 5(10), pp. 16-22.

• Aggarwal, A. & Thakur, G. S. M., 2013. Techniques of Performance Appraisal-A Review. International Journal of Engineering and Advanced Technology (IJEAT), 2(3), pp. 617-620.

• Bernardin, H. J. & Russell, J. E. A., 1998. Human Resources Management: An Experiential Approach. 2nd ed. Boston: McGraw-Hill Education.

• Islam, R. & Mohd Rasad , S. b., 2006. Employee Performance Evaluation by the AHP: A Case Study. Asia Pacific Management Review, 11(3), pp. 163-176.

• Singh, P., 2015. Performance Appraisal and it’s Effectiveness in Modern Business Scenarios. The SIJ Transactions on Industrial, Financial & Business Management (IFBM), 3(4), pp. 37-40.

• Šišinački, A., Dobiš, B. & Šišinački, J., 2017. Successful Organizations Driven By Employee Performance. Education for Entrepreneurship, 7(2), pp. 189-204.

• Turgut, H. & Mert, I. S., 2014. Evaluation of Performance Appraisal Methods through Appraisal Errors by Using Fuzzy VIKOR Method. International Business Research, 7(10), pp. 170-178.