Performance management and appraisals

 

Performance management is a systematic analysis and measurement of worker performance (including communication of that assessment to the individual) that we use to improve performance over time. Performance appraisal, on the other hand, is the ongoing process of evaluating employee performance.

 

Performance Management vs Performance Appraisal

                Performance management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Basically we are trying to figure out how well employees perform and then to ultimately improve that performance level.

 

                Performance appraisal, on the other hand, is the ongoing process of evaluating employee performance. Performance appraisals are reviews of employee performance over time3 , so appraisal is just one piece of performance management.

 

Performance appraisal process

                The performance appraisal process is a formal interaction between an employee and his manager that takes the form of a structured interview to examine and discuss strengths and weakness. This is undertaken to improve current skills and knowledge and offer further opportunities for improvement, development, and growth

 

Why Do We Conduct Performance Appraisals?

                It can provide us with a series of valuable results. However, done incorrectly, the process of evaluating employee performance can actually lead to lower levels of job satisfaction and productivity.

 

Modern performance methods

1. Management by Objectives (MBO)

Management by objectives (MBO) is the appraisal method where managers and employees together identify, plan, organize, and communicate objectives to focus on during a specific appraisal period. After setting clear goals, managers and subordinates periodically discuss the progress made to control and debate on the feasibility of achieving those set objectives.

 

2. 360-Degree Feedback

360-degree feedback is a multidimensional performance appraisal method that evaluates an employee using feedback collected from the employee’s circle of influence namely managers, peers, customers, and direct reports. This method will not only eliminate bias in performance reviews but also offer a clear understanding of an individual’s competence

 

3. Assessment Centre Method

The assessment centre method enables employees to get a clear picture of how others observe them and the impact it has on their performance. The main advantage of this method is that it will not only assess the existing performance of an individual but also predict future job performance.

 

4. Behaviorally Anchored Rating Scale (BARS)

Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits in a performance appraisal process. BARS compares employee performance with specific behavioral examples that are anchored to numerical ratings.
Each performance level on a BAR scale is anchored by multiple BARS statements which describe common behaviors that an employee routinely exhibits.

 

5. Psychological Appraisals

Psychological appraisals come in handy to determine the hidden potential of employees. This method focuses on analyzing an employee’s future performance rather than their past work. These appraisals are used to analyze seven major components of an employee’s performance such as interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality traits, emotional quotient, and other related skills.

 

References

                ·         Performance management (2020). 6 Practical Performance Appraisal Methods. Process. https://kissflow.com/hr/performance-management/employee-performance-appraisal-method/

                ·         Bhasin, H (2021). Performance Appraisal Process. Marketing91. https://www.marketing91.com/performance-appraisal-process/

                ·         Hayes, A (2021). Performance Appraisal. Investopedia. https://www.investopedia.com/what-is-a-performance-appraisal-4586834