AeroSoft Corp: Performance Evaluation – Various Styles, Techniques

Saturday, 19 September 2020

Performance Evaluation – Various Styles, Techniques

Performance Evaluation – Various Styles, Techniques

Performance Evaluation (PE) is key factor in improving the quality of work input, inspires staffs to make them more engaged. Employee Performance is related to job duties that are expected of a worker and how perfectly those duties were accomplished. Many managers assess the employee performance on an annual or quarterly basis in order to help them identify suggested areas for enhancement. The performance appraisal (PA) system depends on the type of the business for an organization. PA mostly relates to the product output of a company or

the end users of an organization.

Generally, performance appraisal aims to recognize current skills’ status of their work force. Any standard appraisal system consists of collection of data in which information is extracted from then

converted into a real number called performance rating. The employees’contribution to an organization depends on the evaluation of his/her

rating.

 Objectives of Performance Appraisals

1. Promotions

2. Confirmations

3. Training and Development

4. Compensation reviews

5. Competency building

6. Improve communication

7. Evaluation of HR Programs

8. Feedback & Grievances

 Performance Appraisal Methods/ Techniques:

1. Traditional Method

2. Modern Method

• Traditional Method: Traditional methods are comparatively older methods of performance appraisal. These methods were past oriented

approaches which concentrated only on the past performance.

The following are the topical traditional methods that were used in the past:

a) Ranking Method- Superior ranks his employee based on merit from

best to worst. However how best and why best are not elaborated in this method.

b) Graphic Rating Scales - In 1931 a behaviorism enhancement was introduced to graph rating scale. According to, the graphic rating scale is a scale that lists a number of traits and a range of performance

for each. The employee is then graded by finding the score that best defines his or her level of performance for each trait.

c) Critical Incident Method - This method is concentrated on certain critical behaviours of employee that makes significant difference in

the performance. According to, critical incident method keeps a record of unusually employee’s work related behaviour and revisit it with the

employee at prearranged times.

d) Narrative Essay- In this method the administrator writes an explanation about employee’s strength and weakness points for improvement at the end of evaluation time. This method primarily attempt to concentrate on behaviors . Some of the evaluation criterion are as follows: overall impression of performance, existing capabilities & qualifications, previous performance, and suggestions by others.

• Modern Method

1. Management by Objectives: It means management by objectives and the performance is rated against the achievement of objectives stated

by the management. MBO process goes as under.

• Establish goals and desired outcomes for each subordinate

• Setting performance standards

• Comparison of actual goals with goals attained by the employee

• Establish new goals and new strategies for goals not achieved in previous year.

2. Psychological Appraisals: These appraisals are more directed to assess employee’s potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his / her performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation.

3. Assessment Centers: This technique was first developed in USA and UK in 1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self-confidence, resistance to stress, energy

level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc. Disadvantages – Costs of employees traveling and lodging, psychologists, ratings strongly influenced by assesses inter-personal skills. Solid performers may feel suffocated in simulated situations. Those who are not selected for this also may get affected.

4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful information on how an employee does a job may be one of the appraisers. This

technique is highly useful in terms of broader perspective, greater self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure inter-personal skills, customer

satisfaction and team building skills. However on the negative side, receiving feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be less adept at providing

balanced and objective feedback.

Pragati Pandey

Finance Manager

Aircrews Aviation Pvt Ltd.

pragatipandey.Aircrews@gmail.com

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