What Are Performance Evaluation Methods?

Performance management can be defined as the process of communicating between managers and employees in order to achieve the company’s strategic goals. Performance management is a periodic, systematic and objective process for developing employees to enable them to reveal their talents in the best way possible.

 Performance appraisal is a very important part of performance management when it comes to people management. A well-managed performance management system provides staff with clear goals for their work and creates many opportunities for feedback with their managers. In this article, we will examine traditional and contemporary performance evaluation methods .

Learning the benefits and shortcomings of traditional performance management strategies is crucial to developing an effective strategy. Knowledge, capacity, judgment, initiative, attitude, loyalty, leadership, judgment etc. are traditional performance appraisal methods based on personal qualities .

 Traditional Performance Appraisal Methods Can Be Broadly Categorized Under The Following Headings:

Straight Sorting Method:

Ranking is one of the simplest of  appraisal methods. According to this method, employees are ranked from the highest to the lowest or from the best to the worst. Generally, evaluators select the top and bottom employees first, then the next highest and the next lowest, and move on to the median employee.

Critical Incidents Method:

The critical assessment method is one in which the supervisor keeps a record of the critical event or events. After checking the event, it checks the reaction of the employee in that particular case. The employee’s rating or result depends on the employee’s response level in that particular situation.

 This method is not without flaws, as there is a greater focus on adverse events and the recording of events requires the utmost care.

 Confidential Evaluation Method:

This method is mostly used to make decisions regarding promotion and transfer of employees in government agencies. Senior; prepares a confidential report on the employee’s performance, behavior and other characteristics. The report should not be disclosed to anyone. It is sent with a sealed cover to the relevant authorities who evaluate the employee based on this report and take their decisions.

 Behavioral Assessment Scales:

On this scale, the evaluator must observe the behavior of the employee while doing the work. It then compares these behavioral observations with behavior-related rating scales.

 Explanatory statements about the behavior of the employees, both effective and ineffective, are placed on the scale scores and the rater is asked to indicate which behaviors best describe the employee’s behavior.

 This method is more valid and is expected to give more reliable results as it minimizes errors in performance evaluation. It describes measurable behavior and is therefore more scientific.

 Free Form or Composition Method:

Under this method, the evaluator writes a short essay about the employee’s overall impressions of his or her performance. This method suffers from some disadvantages, such as a high level of subjectivity and dependence on the evaluator’s writing ability.

 Group Evaluation Method:

Evaluation of an employee by more than one person. The employee’s supervisor and several other senior staff discuss the employee’s  standards and then evaluate their performance. The major advantage of this method is that it is relatively unbiased, although time consuming.

 Assessment Center Method:

This technique was first developed in 1943 in the USA and England. The assessment center is a central location where managers can meet to engage in work-related exercises evaluated by trained observers. The focus is on observing the behavior of employees in a series of selected exercises or work examples.

Employees are asked to participate in exercises, study groups, computer simulations, role plays that require the same qualifications for successful performance in real jobs. Attributes evaluated in the assessment center are assertiveness, persuasive ability, communication ability, planning and organizational ability, self-confidence, resistance to stress, energy level, decision making, sensitivity to emotions, administrative ability, creativity and mental alertness, etc. it could be.

Management by Purposes:

This concept was first introduced by Peter Drucker in 1954. According to him, the performance of an employee can be evaluated based on the goals set by the management of an organization. Goals are communicated to employees, and then an employee’s performance is compared with those set goals and evaluated on that basis.

 In the event that the employee cannot reach the predetermined goals, the management decides on a new strategy that needs to be made to achieve the unattainable goals.


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