Performance Appraisal - (Methods & Benefits)
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Performance Appraisal
Performance appraisal is an essential
aspect of managing human resources in any organization. It is a systematic
process of evaluating and assessing an employee's performance, usually against
set goals and standards. Performance appraisal methods vary widely, and each
has its strengths and weaknesses. This blog post will highlight a few key Traditional
Methods and will discuss in-depth Modern performance appraisal methods, their strengths and weaknesses,
and how to choose the most appropriate method for a sales and marketing
organization.
The Graphic Rating Scale Method:
The graphic rating scale method is a
popular and straightforward method for evaluating employees' performance. It
involves rating employees' performance on a scale that ranges from excellent to
poor (Koppes, 2019). This method is easy to use, and the results are simple to
interpret. However, it is subject to rater bias, and the scale may not be
standardized.
Behaviorally Anchored Rating Scales
(BARS):
The BARS method is a more complex version of the graphic rating scale method. It involves describing specific behaviors that are linked to particular levels of performance (Bernardin & Beatty, 1984). The method is more objective than the graphic rating scale method and provides more detailed feedback to employees. However, it is time-consuming and expensive to develop and may be difficult to use in large organizations.
Management by Objectives (MBO):
The MBO method involves setting
specific goals and objectives for employees and evaluating their performance
based on how well they achieve those objectives. The method provides a clear
and objective way to evaluate employees (McGregor & Cummings, 2013).
However, it may not be suitable for all employees, and the goals and objectives
may not always align with the organization's overall goals.
360-Degree Feedback Method:
The 360-degree feedback method
involves gathering feedback from multiple sources, including supervisors,
peers, subordinates, and customers. The method provides a comprehensive view of
employees' performance (Bracken, Timmreck, Fleenor, & Summers, 2001).
However, it can be time-consuming, and the feedback may not always be accurate.
Critical Incident Method:
The critical incident method involves
recording specific incidents where employees performed exceptionally well or
poorly. The method provides specific and concrete examples of employees'
performance (Flanagan, 1954). However, it may not provide a complete picture of
employees' overall performance.
Ranking Method:
The ranking method involves ranking
employees from best to worst based on their performance. The method provides a
clear and objective way to evaluate employees (Bernardin & Beatty, 1984).
However, it may be challenging to compare employees with different job
responsibilities, and it may not provide enough detailed feedback to employees.
Choosing the most appropriate method for a sales and marketing organization:
Choosing the most appropriate
performance appraisal method for a sales and marketing organization requires
careful consideration of the organization's unique needs and goals. The
360-degree feedback method and the behaviorally anchored rating scales (BARS)
may be suitable for a sales and marketing organization because they provide
detailed feedback that can help employees improve their performance.
Additionally, the MBO method may be appropriate if the organization has
specific sales and marketing goals that need to be met. However, it is crucial
to ensure that the goals and objectives align with the organization's overall
goals and that they are achievable and realistic.
When choosing a performance appraisal
method for a sales and marketing organization, it is important to consider the
specific requirements of the job roles and the organizational goals. For
example, if the organization values collaboration and teamwork, a 360-degree
feedback method may be more appropriate. If the organization places a higher
emphasis on individual performance and productivity, a graphic rating scale or
MBO method may be more suitable.
MBO Method:
The MBO method involves setting
specific goals and objectives for employees and evaluating their performance
based on how well they achieve those objectives. This method has been shown to
improve job satisfaction and motivation (Locke & Latham, 2002). According
to a study by Kanungo and Mendonca (1994), the use of MBO in a sample of Indian
organizations resulted in improved employee performance and job satisfaction. Additionally,
another study by Chuttipattana (2017) found that the use of MBO in Thai
universities resulted in improved organizational performance and employee job
satisfaction.
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Youtube video - https://www.youtube.com/watch?v=Vwl8mQwrsws
360-Degree Feedback Method:
The 360-degree feedback method
involves gathering feedback from multiple sources, including supervisors,
peers, subordinates, and customers. This method provides a comprehensive view
of employees' performance, and it has been shown to improve self-awareness and
performance (London & Beatty, 1993). A study by Edwards and Ewen (1996)
found that the use of 360-degree feedback in a sample of British organizations
resulted in improved employee performance and job satisfaction. Additionally,
another study by Lee et al. (2014) found that the use of 360-degree feedback in
Korean organizations resulted in improved job performance and organizational
commitment.
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Comparison:
Both the MBO and 360-degree feedback
methods have been shown to improve employee performance and job satisfaction in
different settings. However, the MBO method is more focused on setting specific
goals and objectives, while the 360-degree feedback method provides a more
comprehensive view of employees' performance. Additionally, the MBO method is
more objective, while the 360-degree feedback method may be more subjective due
to the varying sources of feedback.
Contrast:
One of the main differences between
the two methods is the level of involvement of employees in the performance
appraisal process. The MBO method involves employees setting their own goals
and objectives, while the 360-degree feedback method involves gathering
feedback from multiple sources. Additionally, the MBO method focuses more on
the achievement of specific goals, while the 360-degree feedback method
provides a more holistic view of employees' performance.
Benefits of Performance Appraisal –
Sauce - https://www.educba.com/benefits-of-performance-appraisal
It is also important to ensure that
the chosen method is fair and unbiased. Bias can affect the accuracy and
validity of the appraisal, leading to incorrect conclusions and decisions. To
reduce bias, organizations should ensure that the criteria used for evaluation
are objective and based on measurable factors.
In addition, it is important to
provide feedback and support to employees throughout the appraisal process.
This can help employees understand their strengths and weaknesses and take
steps to improve their performance. Regular performance reviews can also help
to identify training and development opportunities, leading to a more skilled
and productive workforce.
In conclusion, performance appraisal is an important process for evaluating and assessing employee performance. There are various methods used for performance appraisal, each with its own strengths and weaknesses. When choosing a method for a sales and marketing organization, it is important to consider the specific requirements of the job roles and organizational goals, and to ensure that the chosen method is fair and unbiased. Regular performance reviews can help to identify areas for improvement and provide opportunities for training and development. By using appropriate performance appraisal methods, organizations can improve employee performance and productivity, leading to greater success and growth.
References:
Bernardin,
H.J. and Beatty, R.W., 1984. Performance
appraisal: Assessing human behavior at work. Boston, Ma.: Kent Publishing Company.[online]
available at https://scholar.google.com/
[Access date 11.4.2023].
Bracken,
D.W., Timmreck, C.W. and Church, A.H. eds., 2001. The handbook of multisource feedback. John Wiley & Sons. [Online] available at https://scholar.google.com/ [Access date
11.4.2023].
David,
W.B., 2001. The
Comprehensive Resource for Designing and Implementing MSF Processes. by Jossey-Bass Inc. .[Online] available at https://scholar.google.com/ [Access date
11.4.2023].
Koppes, L. L. (2019). Historical
perspectives on performance appraisal. In Handbook of research on performance
management and organizational behavior (pp. 1-22). Edward Elgar Publishing.
McGregor, J., & Cummings, L. L.
(2013). Management by objectives. In Handbook of industrial, work &
organizational psychology (pp. 66-79). SAGE Publications Ltd.
Fletcher,
C., 2004. Appraisal and
feedback: Making performance review work. CIPD Publishing. .[Online]
available at https://scholar.google.com/
[Access date 11.4.2023].
Exceptional.
ReplyDeletePerformance appraisal is a process of evaluating an employee's job performance over a specific period of time. It helps in identifying employee strengths and weaknesses, setting performance goals, and providing feedback for improvement. Here are some common methods and benefits of performance appraisal
ReplyDeletePerformance appraisal is a process of evaluating an employee's job performance over a specific period of time. It helps in identifying employee strengths and weaknesses, setting performance goals, and providing feedback for improvement. Here are some common methods and benefits of performance appraisal
ReplyDeleteThank you for your feedback Charith!
DeleteYes! Because it helps identify training gaps, informs decisions about salary and rewards, informs employees' feedback and goal-setting, and helps maintain legal compliance, Performance Appraisal is crucial in HRM.
ReplyDeleteThis discusses various performance appraisal methods, including the graphic rating scale, behaviorally anchored rating scales (BARS), management by objectives (MBO), 360-degree feedback, critical incident method, and ranking method. The strengths and weaknesses of each method are discussed, along with the considerations for choosing the most appropriate method for a sales and marketing organization. The MBO and 360-degree feedback methods have been shown to improve employee performance and job satisfaction in different settings. Finally, the text provides various sources for further reading and information on implementing 360-degree feedback.
ReplyDeleteThank you for taking your valuable time read my post and I appreciate your feedback.
DeleteHi Chathura! This is a very good article on performance appraisal methods. It provides a comprehensive overview of traditional and modern methods, including the graphic rating scale, BARS, MBO, 360-degree feedback, critical incident, and ranking methods. It highlights the strengths and weaknesses of each method and provides insights on how to choose the most appropriate method for a sales and marketing organization. The article also includes research findings that support the effectiveness of the MBO and 360-degree feedback methods in improving employee performance and job satisfaction in different settings. Well-written and informative!
ReplyDeleteHi Hashmath! I'm glad that you found it informative. Thank you for your feedback!
DeleteThe text presents an overview of diverse performance appraisal techniques, encompassing the graphic rating scale, behaviorally anchored rating scales (BARS), management by objectives (MBO), 360-degree feedback, critical incident method, and ranking method. The discourse delves into the merits and demerits of each approach, alongside the factors to be taken into account when selecting the optimal technique for a sales and marketing entity. Research has demonstrated that the utilisation of MBO and 360-degree feedback methodologies can enhance employee performance and job satisfaction across various contexts. The text ultimately presents diverse resources for additional reading and knowledge acquisition pertaining to the execution of 360-degree feedback.The process of assessing an employee's job performance over a designated time frame is commonly referred to as performance appraisal. The process aids in the identification of employee strengths and weaknesses, establishment of performance objectives, and provision of constructive feedback to facilitate growth. The following are several prevalent techniques and advantages associated with performance evaluation.The text offers a thorough examination of both conventional and contemporary techniques, encompassing the graphic rating scale, BARS, MBO, 360-degree feedback, critical incident, and ranking methods. The text elucidates the merits and demerits of various methodologies and offers valuable perspectives on the selection of the optimal approach for a sales and marketing entity. The article presents research results that demonstrate the efficacy of the Management by Objectives (MBO) and 360-degree feedback approaches in enhancing employee performance and job contentment across diverse contexts. The composition is well-crafted and provides valuable insights.
ReplyDeleteHi Viran! I totally agree with you. Highly appreciate for taking your valuable time to provide feedback. Thank you!
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