By now, if you have read the first article in this series, you should know what performance appraisal methods are, how they are used and why.
We even gave you a few examples of appraisal methods. If you are interested in that article, check out Performance Appraisal Methods – Part 1.
As you know, we stated that there are more than a few flaws with each of these methods. Every one of them is good in assessing a certain part of an employee’s performance, but none of them so far gave us a full picture.
This is completely fine if you are only interested in narrow behaviors your employees are exhibiting, and want to do some micro-management.
However, if you are interested in providing your employees a detailed growth and development plan that will improve their careers, and greatly benefit your company, than you need something else.
That is why, at the end of this article, we will reveal our top pick as the best appraisal method. But first, let’s cover some of the other methods.
Methods for Performance Appraisal
Straight Ranking
This method basically means comparing employees to each other. It uses a simple ranking system that determines which workers are the best, which workers are the worst, and the ones in the middle.
Now, there are two major problems with this method. The first is obviously subjectivity of the raters. It is crucial to get personal differences out of the way when doing this method. But even then, focusing just on some objective figures and numbers doesn’t give us a full picture.
The other problem is the fact that, while it may be easy to determine the best and the worst employee, the ones in the middle is where it gets tough.
It is very hard to rank similar workers, without some other factors, such as personal opinions, getting in the way.
Paired Method
This method compares an employee, with every other employee in the group.
Experts consider this a reliable method and companies often use it when determining promotions and pay raises. An employee is compared to every other employee in the department, on various important factors.
We do this with each employee, until one obviously stand out from the others, because of his prowess. That employee is than offered a promotion.
Psychological Appraisal
This method assesses employees on various factors such as emotional intelligence, intellect, analytical skills etc.
HR experts consider this a reliable method. The only downside is that a professional has to do it, and the fact that those psychological factors don’t always necessarily translate into business performance.
360 Degree Feedback
And finally, our top pick.
There is a reason we have chosen this method as our absolute favorite.
It is because it is one of the only methods that truly gives an objective, full-circle picture of an employee.
This method basically takes feedback from everyone surounding an employee (their supervisors, their peers, the people working under them…).
The feedback determines their prowess in certain categories such as leadership skills, communication, teamwork, motivation and other important traits, and compares them to an employee’s self-assessment.
This gives a full picture of the employee in question, and gives them a clear roadmap to follow to develop themselves further.
If you are interested in conducting these 360 assessments in a simple and easy way, check out Best360.
