The Various Types of Performance Appraisals

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Table of Contents

Concept Definition
The Types of Performance Appraisals
Conclusion
References

Concept Definition

A performance appraisal is a formal interaction between managers and their employees where the employees are evaluated during a set time span to determine their weaknesses and strengths. The main objectives of performance appraisal are correcting weaknesses observed in employees, encouraging their strengths, and providing them an opportunity for professional development.

The appraisals provide vital information used for transfers, promotions, and wage increment. As such, the management should ensure that organization’s appraisal system is unbiased, ensures free flow of information, and is in line with organization’s objectives.

The Types of Performance Appraisals

According to DelPo (2007) there are two main categories of performance appraisals, individual and multiple person appraisal systems. Under the individual appraisal system, employees’ performance is studied in terms of their strengths and weaknesses over a given time period.

The popular forms of this performance appraisal system include, Management by Objectives, Annual Confidential Reports, Checklist, and Critical incident. These forms are discussed detail below.

Critical Incident

This method of appraisal involves the analysis of employee’s best and worst incidences or behavior in the past period under consideration. This period could be last quarter or last year.

Checklist technique

The checklist technique uses a set of predetermined questions that either require a no or yes response. The supervisor, to a certain quality and performance, answers this list of set questions.

Confidential Reports

This technique is among the oldest in appraisal history. Here, the senior employees, managers and supervisors, prepare a report on the strengths and weaknesses of their junior staff depending on their past year’s performance. This report is never availed to these employees hence the name, confidential reports.

Self-appraisal

Aamodt (2009) has added self-appraisal as an individual appraisal technique. He explains that it is a technique that allows employees to evaluate their behaviour and performance (243). However, he admits that this technique is not very popular.

Management by Objectives

Management by Objectives (MBO) method emphasizes on tangible and measurable goals. To achieve these goals, the management identifies the key result areas and develops strategies to attain the best results. This information is passed to the employees who then work as a team to help achieve the set goals.

The Multiple Persons Appraisal Methods

This type of performance appraisal compares employees’ performance against each other. It is categorized into, ranking, performance tests, paired comparison, and 360 Degree.

360-Degree Appraisal Method

360-Degree is an all round appraisal method. This is because all the persons with whom the employee interacts while performing work duties provide the information or data used in his or her appraisal.

This means that all the aspects of an employee’s performance and personality are analyzed since every person evaluates based on his or her own view. The employee under evaluation gets the results of the exercise to help him or her increase performance.

Paired Comparison Method

In this method, the management compares employees to one another on basis of performance and personality traits. He then ranks them based on the results of his analysis from first to last.

Conclusion

From my experience, understanding, and observation, I would prefer the use of Management by Objectives appraisal method. Here, the management and employees collaboratively agree on specific, measurable, attainable, relevant, and timely (SWART) objectives.

This therefore gives a sense of direction, as employees know the target they are to achieve. It also minimizes the chance of a biased manager ruining an employee’s career claiming none performance, since it is clear when goals are achieved. Compared to other appraisal methods such as the 360º feedback, Management by Objectives is less time consuming.

References

Aamodt, M. G. (2009). Industrial and Organizational Psychology: An Applied Approach (6 ed.). New York, NY: Cengage Learning.

DelPo, A. (2007). The performance appraisal handbook: legal & practical rules for managers (2nd ed.). California, CA: Nolo.

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