HRM - Performance Management - Performance Appraisal Methods

Unit 5: Performance Management Assignment Task - 02 Waseem Hameed 1/27/2019 Table of Contents 1. 360 Degree feedback method ............................................................................................. 2 Example. ................................................................................................................................ 2 2. Forced distribution method .................................................................................................. 2 Example ................................................................................................................................. 3 3. Essay evaluation method .................................................................................................... 3 Example (short paragraph of an essay) .................................................................................. 3 4. Critical incident method ....................................................................................................... 3 Example ................................................................................................................................. 4 5. Ranking method .................................................................................................................. 4 Example ................................................................................................................................. 4 References ................................................................................................................................ 5 Page 1 of 5 1. 360 Degree feedback method A 360 degree feedback, also known as multi-rater feedback, multi-source feedback or multisource assessment is a performance appraisal method used by retrieving feedback from an employee’s subordinates, supervisors, managers and both internal and external customers (Wikipedia, 2018). Such feedback can include from customers and all the stakeholders that can provide information about an employee’s performance and different competencies and goals that it set out for the relevance of the job. This provides more rounded view of an employee’s performance. Since the feedback is received from several assessors the decision made on the performance or the rating received by this method can be unbiased. As this method could provide the employee on how their performance is perceived by others it also can increase the awareness of the relevant competencies that is required as per the expected performance conducted through the job analysis. However, in use of such methods, people do not provide frank and honest feedback and be subjective to the time period the feedback is requested whereas the performance appraisal is the feedback for the entire year. This can also increase on excessive administrative procedures (Armstrong, 2012, p. 343). Example. During the period of appraisal, the feedback about the employee’s performance is requested from subordinates, supervisors, managers and both internal and external customer. The feedback is then assessed accordingly as per the competencies, behaviours and the efforts put towards to achieve departmental or organizational goals and if organizations cultures values are met. The reviewer decides a final rating the employee has achieved on the performance depending on the rating scale as described by Armstrong in his book (Armstrong, 2012, p. 337). The outcome of the evaluation report should summarize the findings on how the employee shall be rewarded and what actions are required to correct and improve the shortcomings to increase the performance of the employee (Armstrong, 2006, p. 200). 2. Forced distribution method Forced distribution appraisal method is where the employee falls under a pre-indicated performance rank (SuccessDart, 2017). This method ensures that a small fraction of the employees fall under the categories of outstanding performers and poor performers and whereas most of the remaining will fall under the middle of the distribution. Studies indicate that this is one of the most widely used methods and also the most criticized methods (Skool, [n.d]). Due to financial reasons organizations may use this method to avoid increasing the labour costs. Organizations may also use this method to reward the best performers. However the method can contradict if the organization has aimed to hire talent and Page 2 of 5 if all the employees within the organization actually provides outstanding performance. There are several issues are associated with this method. However if an organization aims to recruit talent and have recruited talent this method would not be suitable as employees will be talented on each areas and forcefully grading an employee poor would not be effective for future performances of that employee which eventually would lead to higher turnover. Though this method is used to create a culture of high performance it is criticized for various and above mentioned reasons. This further can lead to rivalry amongst employees and lower the moral of the workforce as employees will think they are rates unfairly. (Skool, [n.d]). Such methods can lead to type 1 error where the manager thinks that there are no differences in employee performances and forcefully rate (Armstrong, 2006, p. 102). Example If a manager is evaluating 20 employees, the manager decides that 5 employees will fall under poor performance and 5 in outstanding performance and the remaining employees to fall under in between. The category distribution is done prior to the evaluation and employees forcefully falls under the desired category. 3. Essay evaluation method “this method involves writing a detailed descriptive essay of the performance by the employee’s direct supervisor or the manager” (Roychoudhuri, 2013). The supervisor or the assessor shall provide a detailed information of the employee’s performance like an essay highlighting the strengths, weaknesses, attitude and behaviours towards the employees assigned duties. The appraiser can also provide the shortcomings and areas the employee needs to improve on his performance. Example (short paragraph of an essay) Waseem has shown great understanding of product knowledge. He completes his tasks on a timely manner and always helpful towards his peers. He respects his supervisors and adheres to the company values. However he needs to improve on his punctuality and make constant follow up with his assigned goals and tasks. 4. Critical incident method In critical incident method it requires to keep and accumulate written records of the employee’s favourable and unfavourable actions throughout the appraisal year. Recording all the positive incidents that has occurred by employee’s action such as positive feedbacks from customers, supervisors, achievements and all that is favourable to the employee’s indicating his work efforts. Also recording all the negative incidents that has occurred by employee’s action such as negative customer feedback, attitude complaints from supervisor and all other shortcomings. All Page 3 of 5 the records that are accumulated in a given period and then the appraiser rates accordingly (Roychoudhuri, 2013) Example Favourable incident Waseem receives a positive customer feedback on the social media on how he handled a complaint professionally and the customer is overwhelmed on his promptness and empathy shown. Unfavourable incident Waseem involves in a contentious discussion with a supervisor and was expressing his anger and attitude towards his supervisor on a task that he has delayed to complete which has led to several issues and shortcomings on assigned tasks. All the favourable and unfavourable incident such as given examples above are recorded and accumulated throughout a year and rates the performance accordingly (Roychoudhuri, 2013). 5. Ranking method In this method the rater ranks the employee on overall performance. It puts the employee in a ranking order with other employees in the same group according to the competencies the entire group is evaluated on. The competencies are compared with each other and the employee is ranked accordingly to the achievements or performance. This method is very simple and effective when there are few competencies to be evaluated. However the ranks are subjective and difficult to administer if the number of competencies are increased. (hr-guide, n.d.). The rating scales can be defined alphabetically or numerically as per the organisational ease (Armstrong, 2012, p. 337) The main advantage of this method is that it is easy to understand and inexpensive to use. As mentioned above it is subjective in nature and may not be fruitful if used in big organisations. (Businessjargons, 2015) Example: If a department evaluates 5 employees with the same competencies there performance is compared between each other and the highest performing employee is awarded with the highest ranking and the lowest performing employee is awarded with the lowest ranking from among all the employees. Page 4 of 5 References Armstrong, M., 2006. Performance Management. 3rd Edition ed. London: Kogan Page Limited. Armstrong, M., 2012. Armstrong's Handbook of Human Resource Management Practice. 12th Edition ed. London: Kogan Page Limited. HEATHFIELD, S. M., 2012. How to Provide Coworker Feedback for a 360 Review. [Online] Available at: https://www.thebalancecareers.com/how-to-provide-coworker-feedback-for-a-360review-1917538 [Accessed 02 01 2019]. HEATHFIELD, S. M., n.d. How to Provide Coworker Feedback for a 360 Review. [Online]. Roychoudhuri, U., 2013. The Top 10 Performance Appraisal Methods for Startups & Small Businesses. [Online] Available at: https://www.sumhr.com/top-performance-appraisal-methods-startups-smallbusinesses/ [Accessed 05 01 2019]. Skool, M., [n.d]. Forced Distribution Method. [Online] Available at: https://www.mbaskool.com/business-concepts/human-resources-hr-terms/15258forced-distribution-method.html [Accessed 05 01 2019]. SuccessDart, 2017. Forced distribution method- All you need to know. [Online] Available at: http://www.successdart.com/forced-distribution-method-need-know/ [Accessed 03 01 2019]. Systems, E. T., 2018. 360 appraisal questions and best practice examples. [Online] Available at: view-source:https://www.etsplc.com/blog/360-appraisal-questions-and-bestpractice-examples/ [Accessed 02 01 2019]. Wikipedia, 2018. 360-degree feedback. [Online] Available at: https://en.wikipedia.org/wiki/360-degree_feedback [Accessed 02 01 2019]. Woods, C., 2015. What Is a 360 Degree Appraisal? - Definition & Examples. [Online] Available at: view-source:https://study.com/academy/lesson/what-is-a-360-degree-appraisaldefinition-examples-quiz.html [Accessed 01 01 2019]. Page 5 of 5