Performance appraisal is one thing that an employee of a company waits for the whole year. This appraisal cycle decides the take home salary of the employee and is also associated with his professional growth. The performance appraisal is also linked to the confidence of the employee. If he doesn’t get a good yearly performance rating in spite of doing the hard work throughout the year, his confidence goes down and hence the performance of the company as well.
In this article, we will discuss the traditional methods of appraisal and the current methods being adopted and how this performance cycle happens. We will also discuss the techniques and objectives of appraisal cycle in this article.
Performance appraisal Objectives
The objective of doing performance appraisal is to let the employee know how well he has performed in the defined time. Employees are usually given good ratings if they had performed well without any escalations taking place against him. The performance appraisal is another way to check what the employee lacks at. If he lacks specific area and needs attention for any skill, he can be provided with those.
Process of Performance appraisal
Usually, the process takes place in below steps. The steps may differ according to the organization and the area in which it is operating.
- The employee is asked to give himself some points against which he will be judged on. These areas could be how well he has handled the process and how well his understanding is. He is also asked about his new learning’s on job
- The same list is passed to the manager as well to give employee points on the same criteria on what employee has filled. Later on, both the ratings are normalized and a particular rating is provided to the employee
- The employee gets a salary based on the rating he got for a particular year.
Traditional methods of performance appraisal
The traditional methods used for Performance appraisal includes
Straight rating method is one of the oldest methods of judging an employee. In this method, employer ranks his employee from poorest to the best on the basis of ranks.
Graphic rating method is another traditional method of performance appraisal. In this method, every employee is judged with each category holding some share.
Modern methods of performance appraisal
Management by Objective is one of the modern methods of performance appraisal. In this method, both employer and employee sit together and identify the goals towards the betterment of the organization.
360-degree feedback method: In this method, feedback comes from every person who interacts with the employee.