The performance appraisal review is an important tool in the manager’s arsenal to determine which employees are top-performers, which are just getting by and which need to be let go. A performance appraisal review is a fancy term for the annual review.
There are performance appraisal systems that can measure work in various different ways and this article we will explain what the different appraisal systems do to help you improve employee performance year after year.
What Is A Performance Appraisal System
A performance appraisal system is one of the different ways in which employee performance can be measured. Every business is a little different and that’s why performance needs to be measured differently. Every system looks at different aspects of work to help managers better hone in on what their employees do well or where they can improve. There’s a system to measure work behavior, a system to measure meeting objectives and other system types as well.
What Are The Different Types of Performance Appraisal Systems
Normally the different types of performance appraisal systems are separated into four groups. Below we’ll touch on the four types of performance appraisal systems and what each of them measures.
Behavioral Checklist – The behavioral checklist method is a way of measuring behaviors and characteristics specific to the job.The behavioral checklist method seeks to evaluate how well an employee is or isn’t exuding these behaviors and characteristics while at the workplace.
360 Degree Appraisal – The 360 Degree Appraisal method is one where an employee is judged by their manager, co-workers and anyone else who works closely with the employee at the company. This method attempts to look at the employee as a whole person and not just through the eyes of the manager.
If an employee works well with upper management but not with co-workers, create long-term issues for the company. The 360 degree appraisal seeks out these issues that a manager might not be privy to so the manager can help fix kinks in the workflow outside of his or her office.
Management By Objective – Management by objective is a more modern look at performance appraisals. The company sets realistic, measurable goals and looks at how well the employee accomplished them. This helps take subjectivity out of the appraisal and keeps things objective.
Psychological Appraisals – Psychological appraisals look to measure how stable an employee is intellectually and emotionally. The psychological appraisal also determines the employee’s ability to analyze problems and problem-solves. This appraisal is best for managers who want to determine how to even out or optimize work teams.
Conclusion – Although there are many types of performance appraisal systems out there, some will be more beneficial to specific companies or teams than others. When crafting your performance system, make sure to analyze what your team does and does not need and whether or not your specific performance appraisal system properly measures those qualities.
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