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Performance appraisal refers to the regular review of an employee’s job performance and overall contribution to the organization. In this article, we share with you the traditional method of performance appraisal. A performance appraisal, also known as an annual review, performance evaluation or evaluation, or employee evaluation, evaluates an employee’s skills, achievements, and growth, or lack thereof. Organizations use performance reviews to provide employees with comprehensive feedback on their work and to justify raises, bonuses, and termination decisions. It can be done at any time but is typically annual, semi-annual, or quarterly.
How Performance Appraisal Works Performance reviews are typically created by Human Resources (HR) departments as a way for employees to progress in their careers. They provide individual feedback on their job performance. Performance appraisal ensures employees are managing and achieving the goals expected and guides how to achieve them if they are not.
Companies often have limited funds to provide incentives such as raises and bonuses, so performance reviews help determine how those funds should be allocated. Traditional methods of performance appraisal and performance appraisal provide companies with an opportunity to determine which employees have contributed most to the company’s growth, and reward the best-performing employees accordingly.
Traditional method of performance appraisal
Performance appraisals also help employees and their managers develop employee development plans through additional training and enhanced accountability to identify opportunities for employees to advance their careers and move forward. increase. Ideally, a performance appraisal is not the only way managers and employees share employee contributions. Traditional methods of performance appraisal ensure having more frequent conversations keeps everyone on the same page, strengthens relationships between employees and managers, and reduces the stress of annual reviews.
Rating scale method
This is a common traditional method of performance evaluation. This method creates a scale that evaluates employee performance based on certain parameters. These traditional methods of performance appraisal are parameters that typically include his demeanor, attendance, punctuality, and interpersonal skills. The rating scale used in this method is 1-10. A low score represents negative feedback and a high score represents positive feedback. Evaluation Scale Method
Checklist Method
This consists of descriptive text about employee behavior. Each statement has two options: Yes & No or True or False. The evaluator can choose between two of her options that seem to accurately describe the employee’s behavior.
Forced Distribution Method
This method was common in large organizations. This is based on the fact that employees within an organization perform very differently, with some being highly productive and others being less productive. This method forces managers to assign employees to all points on a bell-shaped scale according to their performance. Some are in the prominent range, some are in the average range, and some are in the lower range of the curve scale.
Critical Incident Method
This method focuses on serious employee behavior such as employee reactions to specific situations. In other words, this method evaluates performance against a list of important behaviors.
Example: On September 1, 2022, the manager effectively dealt with an angry customer. Was he or she very quick and courteous in resolving the issue? If he or she was, then, it is a positive critical incident. If perhaps the manager was very rude to the customer, then, it is a negative critical incident.
Essay Method
In this method, the evaluator writes a description of the employee’s behavior and performance. The description includes all relevant information such as employee attitudes, expertise, current performance, and growth potential.
Paired Comparison Method
This procedure considers certain characteristics for evaluating employees. Based on this trait, each employee is compared one-to-one with other employees in pairs. The possible number of pairs is calculated using the formula: N (N1)/2. N is the number of employees being evaluated. It can be understood with an example: he or she has five employees A, B, C, D, and E to be evaluated. If we apply Equation 5(51)/2, we need to compare 10 pairs.
A with B B with C C with D with E
A with C B with DC E
A with D B with E
A with E
Field Review Method
This method is based on managers’ opinions of employee performance, behavior, and skills. Human resource specialists ask managers to answer employee hiring questions and evaluate employees based on the manager’s feedback based on traditional methods of performance appraisal.
Confidential Evaluation Method
This method is used primarily by government agencies to make decisions regarding employee promotions and transfers. Seniors produce confidential reports on employee performance, behavior, and other characteristics. Reports should not be made public to anyone. It will be sent in a sealed envelope to the appropriate officials who will evaluate the employee and make appropriate decisions based on this report.
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