Performance Appraisal Methods

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Performance appraisal uses a variety of methods for evaluation. The five main methods used are: •Interview-Based Appraisal:
The interview based appraisal system is implemented in a number of companies. The employee gains essential feedback on their annual or semi-annual performance to evaluate their effectiveness and efficiency within the designated assignments. The interview appraisal is used as a constructive method in which to enhance the employee’s advancement. The main aim is to analyse the standards throughout the previous year and set further goals for the forthcoming year. Although this method is implemented in a number of companies, it is often used ineffectively in organisations (Landy and Trumbo, 1980) due to upper management lacking the essential skills to perform the appraisals effectively (Burke and Kimball, 1971).

Competency-based Appraisal:
Modern companies are becoming increasingly interested in the assessment of competence. The employee performance is determined upon their ability to complete a task successfully. Although this system can be used to rank workers in the company, it was manly devised to allow employee progression against their own ability. Hence areas of strengths and weaknesses can be determined and appropriate action deployed. Behaviourally Anchored Rating Scales (BARS) were developed to clearly outline the competencies required to complete a task. This was the method used to measure individual performance in order for an effective appraisal to be carried out.

Upward Appraisal

Upward appraisal is another important performance appraisal technique to consider because upward/360 degree appraisal is used within 10-15% of modern organisations for performance appraisal analysis (Yammarino and Atwater, 1997). Examples of this include Honda, NASA and Motorola. Upward appraisal used employee evaluations of their managers in order to enhance...
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