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Modern Methods of Performance Appraisal





The Performance Appraisal is the assessment of the employee’s job performance against the benchmark previously set for the categories such as output, leadership, teamwork, versatility, supervision, etc.




1.   Management by Objectives

This concept was given by Peter.F.Drucker. According to this concept performance of an employee is assessed considering the targets achieved by him which was set by the management of an organization at the beginning of the assessment period.Briefly it is done as follows

Goals and objectives are set by the Management and communicate the same to       the  employees,

Performance of an employee is compared against these set goals and is evaluated       after the pre sanctioned assessment period. 

In case the employee is not capable in achieving the pre-established goals, then management decides to switch to new strategy or policy that should be undertaken for the accomplishment of unattainable goals.

2.  Psychological Appraisals

This is very popular method in modern culture for performance appraisals. Under this method, psychologist assesses the employee’s potential for the future performance rather than the past one. In this process psychologist conducts the in-depth interviews, psychological tests, discussions with the supervisors and the reviews of other evaluations.

Through this assessment system,the intellectual, emotional, motivational and other related characteristics of an employee can be determined with which it necessary to predict his potential for the future performance.

3.  Assessment Centres

 The assessment center is a common location where the managers come and perform the job exercises. Here the assesse's is requested to participate in in-basket exercises, role playing, discussions, computer simulations, etc. Where they are evaluated in term of their persuasive ability, communication skills, confidence, sensitivity to the feelings of others, mental alertness, administrative ability, etc.

This entire exercise is done under the trainer who observes the employee behavior and then discusses it with the rater who finally evaluates the employee’s performance.

4. 360-Degree Feedback 

It is a feedback method wherein the details of an employee’s performance is gathered from several stakeholders such as superiors, peers, team members and self.  It is worth while to mention that employee is asked about himself to get own idea of his work performance accordingly he can realize his strengths and weaknesses.

Also, the peers or team members are asked about assessee’s performance through which the employee knows about what others feel about him and can overcome his disbeliefs if any. Thus, this method is used to have a detailed evaluation of an employee from all the perspectives.

5. 720-Degree Feedback 

This is a advance version of above discussed 360- Degree Feed back. This assessment is done not only by the feed back of stakeholders within the company but also from the groups outside the organization. These external groups who assesses the employee’s performance are customers, investors, suppliers and other financial institutions.

It is one of the most crucial modern methods of performance appraisal because this is the only group that determines the success of the organization as a whole.


Though some companies of the world still practicing old method for employee appraisals it is advisable to use above discussed modern methods to identify the most accurate performance of the employees.


Reference

Business Jargons. 2020. What Are The Modern Methods Of Performance Appraisal? Business Jargons. [online] Available at: https://businessjargons.com/modern-methods-of- performance appraisal.html [Accessed 10 June 2020].

Comments

  1. What are key different between traditional approaches and modern approaches.

    ReplyDelete
    Replies
    1. A “Traditional approach” refers to old or well-established techniques or customs. A “modern approach” refers to something being used now based on new developments in science, engineering, or social changes

      Delete
  2. Do you believe that the modern methods described here have been implemented by your organization at present.

    ReplyDelete
    Replies
    1. No ajith. As you know most of the companies in Sri Lanka used traditional methods to evaluate employee performance. According to my knowledge only the Management by Objectives from above list used in my organization.

      In the traditionally practiced performance appraising process, the supervisor or the manager annually writes his opinion of a reporting staff member on a document supplied by the HR department or in some organizations, the staff member is asked to fill out a self-review to comment or share with the supervisor.

      In these methods, most of the time, the appraisal reflects what the manager can remember, usually the most recent events. Almost always, this appraisal method fails to communicate the real performance of the staff member which results to consequences effect on the employee and the organization as well.

      It is time to implement these modern methods in forward thinking organizations instead of the less effective outdated methods

      Delete
  3. Mahesh, What are the advantages of modern performance Appraisal?

    ReplyDelete
    Replies
    1. Modern performance appraisal allows you to provide positive feedback as well as identifying areas for improvement. An employee can discuss and even create a developmental (training) plan with the manager so he can improve his skills. It motivates employees if supported by a good merit-based compensation system

      Delete
  4. Do you believe that the management always appraising the real performance of the employee?

    ReplyDelete
    Replies
    1. Matter here in Sri Lankan organization is whether they are using the most appropriate method to identify the performance of the employee. As per the ideas I gathered from people who work in different companies performance appraisals are not done in a fair manner and individual performance is neglected if overall performance of the organization is not achieved.

      Delete

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