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In recent years, top-down evaluations have been combined with other appraisal methods in
efforts to create a more well-rounded view of employee performance.
Types
There are several different types of modern performance appraisal methods. These methods may
be used with top-down evaluations, with each other or by themselves to determine employee
performance.
One modern method, called peer-to-peer appraisal, allows co-workers to evaluate each other's
performance. In offices with strong team environments, co-workers may know better than
supervisors how an employee performs on a day-to-day basis.
Another modern appraisal looks at an employee's performance from several different angles. In
360-degree appraisals, managers, co-workers, vendors, customers, staff members, assistants,
members of other departments and people from related companies may all be called on to share
their thoughts about a particular employee. This approach is designed to give a well-rounded
look at an employee's performance.
Self-assessment appraisals have also become common in modern business environments. Most
commonly used in conjunction with another form of evaluation, self-assessments ask employees
to rate their own performance and set their own performance goals for the coming year.
Benefits
Modern performance appraisal techniques are more employee-focused, making them popular
with employees whose direct supervisors may have little involvement in the employee's everyday
responsibilities.
Because modern appraisal methods draw on a variety of sources, they also create a more wellrounded perspective of an employee's performance. In companies with heavy managerial
turnover or in situations where there may be conflict between employee and manager, these
evaluations can be a more-objective way to judge an employee's performance.
Considerations
All performance evaluations rely heavily on qualitative data, such as communication skills or
leadership, that cannot be measured with hard data. Because of this, appraisals are necessarily
subjective, a fact that can cause problems if employees are unhappy with their evaluations. One
of the best ways to combat this is to have clearly explained criteria for evaluations and to apply
them across the board, even if the criteria are themselves subjective.
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1. Essay Method
3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases
4. Checklist method
5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an