Thursday, 3 November 2022

Traditional and Modern Performance Appraisal Methods

 

Traditional Appraisal Methods


Traditional methods are older methods of performance evaluation. This method is based on an examination of the employees' personal characteristics. It may include abilities such as knowledge, initiative, loyalty, leadership, and judgment (Aggarwal & Thakur, 2013).


Ranking method - Identification of the most manageable performance evaluation techniques. This method will sort employees in a group from best to worst. The negative impact of assigning "worst" and "best" ratings to employees obscures the simplicity of this approach. This type of differentiation can cause negative emotions within the group and have a negative impact on performance (Dessler & Gary, 2011).

 

Paired Comparison - Methods for creating employee rankings based on their work performance involve comparing the performance of two or more individuals. The most common example is when the evaluator compares the first employee with the second, third, and so on from the list in a sequence based on a specific criterion, and the evaluator selects the better of the pair compared (Silverstein & Farrell, 2001).

 

Grading Scale - This strategy assesses the level of specific characteristics required for the activity, such as consistency and steadfastness. Typically, the degree is dependability and dependability. Normally, the degree is estimated on a scale (Excellent, Good, Average, Poor). An employee's performance will be evaluated using these grades, and they will be assigned to the level that best describes their performance (Cardy, et al., 2014).

 

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, and the rater must respond in a simple 'YES' or 'NO' structure (Amin, et al., 2015).

 

Easy evaluation method - The method necessitates writing a detailed description of the article's approach to the employee's immediate Manager's performance. This article focuses on individuals' various job-related strengths, weaknesses, attitudes, and behaviors (Shaout & Yousif, 2014).


Modern Appraisal Methods 


According to Goel, (2012) modern methods are created to improve on traditional methods. It tries to reinforce the flaws of traditional methods, such as fundamentality and subjectivity. The following are examples of typical modern methods.

 

Management by Objective (MBO) - MBO was identified as a more time-efficient and cost-effective method. The manager has set objectives for an employee by agreeing with each other. Employees perform better when they understand their goals and the quality and quantity that must be delivered. This rating is considered fair because employees are aware of the likelihood of being measured (Kyriakopoulos , 2012).

 

360-Degree Feedback – Ward, (1997) defines 360-degree feedback as "the systematic collection and feedback of performance data on an individual or group in achieving goals." Participants can be evaluated confidentially by themselves, their managers, their employees, team members, internal/external customers, suppliers, family, and friends.

 

Assessment Center Method - The assessment center is a central location where managers can be gathered, and trained observers can evaluate their participation in work-related activities (Thornton III & Byham, 1982). It focuses on situational exercises such as planning and organization, self-confidence, stress resistance, energy level, and decision-making ability. It gives the employer insight into the employee's personality (C, et al., 2009).

 

Behaviorally Anchored Rating Scale (BARS)- Smith and Kendall introduced the BARS method to researchers concerned with the reliability and validity of performance evaluations in 1963. This approach is more informative than using simple characters. Employee demanding (effective or ineffective) behaviors define scale points. The person who rates the employee will appear as an observer rather than a judge (Mathis, et al., 2015).

 

Psychological Appraisals - This method evaluates an employee's potential for future performance rather than past performance. In-depth interviews, psychological tests, and discussions with managers are used. This method focuses on the emotional, intellectual, motivational, and other personal characteristics that influence an employee's performance (Singh, 2015).

 

WNS Global Services (Pvt) Ltd, the Organization I work for appraises the employees using a mixed appraisal methodology and will maintain continuous communication with team leaders and managers. Employees who exceeded their expectations were recognized and motivated through a rewarding process that occurred once a quarter of the year.

Employees will be evaluated using multi-rater feedback, which includes self-appraisal, manager appraisal, and peer appraisal. An employee will have complete transparency in the evaluation process and will be able to disagree with any rating that has been assigned to them. When there is agreement, the reevaluation process begins. This procedure will be repeated until both parties are satisfied with the results.


References

  • 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.
  • Amin, M. R., Hossain, M. M. & Islam, M. F., 2015. Evaluating the Effectiveness of Weighted Checklist Method as a Tool of Employee Performance Appraisal: Evidence from Prime Bank Limited. 6(7), pp. 32-44.
  • Cardy, R. L., Balkin, D. B. & Gomez-Mejia, L. R., 2014. Managing Human Resources. 8th ed. USA: Pearson.
  • C, S., S, C. & Trevis, C., 2009. Modern Management: Concepts and Skills. 11th ed. USA: Prentice Hall.
  • Dessler & Gary, 2011. Human Resource Management. 13th ed. USA: Pearson.
  • Goel, D., 2012. Performance Appraisal and Compensation Management : A Modern Approach. 2nd ed. New Delhi: PHI Learning Private Limited.
  • Kyriakopoulos , G., 2012. Half a century of management by objectives (MBO): A review. African Journal of Business Management, 6(5), pp. 1772-1786.
  • Mathis, R. L., Jackson, J. H. & Valentine, S. R., 2015. Human Resource Management: Essential Perspectives. 1st ed. Boston: Cengage Learning.
  • Shaout , A. & Yousif, M. K., 2014. Performance Evaluation – Methods and Techniques Survey. International Journal of Computer and Information Technology, 3(5), pp. 966-977.
  • Silverstein, D. . A. & Farrell, J. E., 2001. Efficient method for paired comparison. Journal of Electronic Imaging, 10(2), pp. 394-398.
  • 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. 36-40.
  • Thornton III, G. C. & Byham, W. C., 1982. Assessment Centers and Managerial Performance. 1st ed. New York: Academic Press.
  • Ward, P., 1997. 360 - Degree Feedback. 1st ed. London: The Chartered Institute of Personnel and Development.

 



4 comments:

  1. Agreed on the content above Fathima. Further, the creation of many performances evaluation models in both developed and developing nations to coordinate the most efficient performance assessment strategy (Redman et al. 2007; Ahmed, 2016; Dauda & Luki, 2018). Additionally, the interpersonal interactions between administrative control and employee characteristics and attributes may lead to a diminished awareness of how each employee performs.

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    1. Agreed Romeda, adding to the above Employee attitude and behavior also an important aspect in performance evaluation. When an employee is nominated to participate in various workshops and training sessions, the employee attitude and behavior will determine the seriousness of training and development programs. The responsive employee will learn new skills that will improve his or her performance. Employee productivity has an impact on organizational productivity (Hameed & Waheed, 2011).

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  2. Agreed with the content Fathima, Performance appraisal of employees is one of the most significant HRD practices in organisations, by which employee‟s satisfaction and overall development can be managed well. Performance Appraisal is typically used for a variety of reasons such as employee rewards, pay rises, job oriented feedback, career and individual development, it is most often scheduled annually or semi annually. Organisations can use Performance Appraisal as a competitive advantage strategically to enhance the satisfaction levels of the individuals at work and effectively increasing the productivity of the employees by risk and reward mechanism (Majid, 2016).

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    Replies
    1. Adding to the above content, creating an effective performance appraisal system necessitates strong commitment from top management: if the system does not provide a link between employee performance and organizational goals, it will be less than fully effective (Boice & Kleiner, 1997).

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