Modern Methods of Performance Appraisal

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Modern Methods of Performance Appraisal

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Performance Appraisal and Modern Methods of Performance Appraisal
Performance appraisal refers to the methodical assessment of the employees’ performances, with proper identification of their abilities and
channelizing them towards better productivity and development. This review of the performances is done to bring out the strengths and
weaknesses of employees to use them effectively in the future.
The modern methods of performance appraisal are stated below:
Assessment Centre Method
Behaviorally Anchored Rating Scale (BARS) Method
Human Resource Accounting Method
Psychological Appraisal Method
Management by Objectives
360 Degree Method
720 Degree Method
A Detailed Analysis of the Modern Techniques of Performance Appraisal
Assessment Centre Method:
As a part of the Assessment Centre Method, employees’ performances are evaluated to bring out their potentiality, further allowing a
systematic placement in key departments. The interpersonal abilities, intellectuality, career setting goals, motivation and the ability to plan
and organize are determined through this process.
Behaviorally Anchored Rating Scale (BARS) Method:
BARS method helps in determining the key areas in the performance of an employee, suggesting areas of improvement to build the steps to
achieve goals. As a part of the performance management, employees have a predefined behaviour recorded with the organization for
effective performance. This method of appraisal analyzes the present behaviour of an employee in comparison with the predefined one. This
makes the employees aware of their deviations and required improvements.
Human Resource Accounting Method:
This method takes employees as assets evaluating their performance in monetary terms. Performance appraisal is analyzed based on the
cost incurred and contributions provided by the employees, where contribution should remain higher than the expenditure incurred on the
employees.
Psychological Appraisal Method:
As a part of this method, psychological tests are conducted to determine the prospects of the employees instead of their past work analysis.
Management by Objectives:
The MBO method originally proposed by Peter Drucker is implemented for setting goals for ultimate success. Setting smart enough goals
can analyze the performances in line with the predetermined goals for better productivity. Douglas McGregor added to the concept defining
the confined reach of the traditional methods setting goals examples for the organization as a whole.
360 Degree Method:
In the 360 Degree Method, an employee’s performance evaluation surveys are conducted on colleagues, managers, subordinates and
customers keeping their identities anonymous.
720 Degree Method:

This system includes a synchronized method of appraisal where a 360-degree appraisal is combined with in-time feedback followed by
further evaluation for setting goals smart and achieving them.
What is a SMART Goal?
The characteristics of a SMART goal are:
S- Specific
M- Measurable
A- Achievable
R- Relevant
T- Time-Bound
In all modern methods of performance appraisal, setting goals is essentially done keeping SMART elements in mind. Why should this be
limited to the professional field? Setting goals in life should also be done giving SMART elements the topmost priority. Only then, one can
achieve them and learn from them effectively.
Steps in Goal Setting
Setting goals is important. The following are the various steps in setting goals:
Mutual discussion and agreement between the management with the employees bringing out the best suitable roles for the
employees.
By setting goals smartly, employees define their objectives for the following year or a span of certain years.
The employee consults with the manager on devising the plans.
The manager at regular intervals evaluates the progress of performance of the employees.
Evaluating the outcomes after the predefined time period in accordance with the organizational goals.
The appraisal is followed by a new plan of action defining the steps to achieve goals.
Limitations of Goal Setting
Setting goals for employees examples require setting goals in life in line with their organizational goals. However, there are limitations of goal
setting in organizations as discussed below:
Such steps to achieve goals can be applied only in organizations bringing out definite outcomes. This is not applicable in the case of
blue-collar workers.
It is a time-consuming procedure requiring patience and effective coordination, without which hindrances might occur.
This is better applied only in the case of executives in the high levels who have established better communications with the low-level
ones in devising new ideas and plans.
Setting goals is not a favourite for the operator workers who refrain from taking up initiatives.
Last updated date: 06th Jun 2023 • Total views: 294.3k • Views today: 7.49k
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Modern Methods of Performance Appraisal

Performance Appraisal and Modern Methods of Performance Appraisal

The modern methods of performance appraisal are stated below:

Assessment Centre Method

Behaviorally Anchored Rating Scale (BARS) Method

Human Resource Accounting Method

Psychological Appraisal Method

360 Degree Method

720 Degree Method

A Detailed Analysis of the Modern Techniques of Performance Appraisal

Assessment Centre Method:

Behaviorally Anchored Rating Scale (BARS) Method:

Human Resource Accounting Method:

Psychological Appraisal Method:

360 Degree Method:

720 Degree Method:

What is a SMART Goal?

The characteristics of a SMART goal are:

Steps in Goal Setting

The employee consults with the manager on devising the plans.

Limitations of Goal Setting

Is this page helpful?

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