Article 3: Method for Evaluation of Performance

As stated by (Muraly, 1994 cited in Mukherjee, 2012, p.140). The negative effects of positive appraisals directly result in the growth of employee mistrust. PA's primary objective is to enhance employee performance in organizations.  (Murphy and Cleveland, 1991 cited in Dijk and Schodl, 2015, p.716).

There are several methods of assessing an employee's performance, but some of those may not be suitable. Clarity should be a concern for effective assessment systems, Truthfulness, fairness, and incentives for productivity, also consider the leadership abilities of the appraiser (Winston & Creamer, 1997 cited in Jafari, Bourouni and Amiri, 2009).

There are frequently two kinds of performance appraisals: Traditional (Past oriented) strategies & Modern (future oriented) techniques. Three types of techniques have been recognized by other researchers: absolute standards, comparable standards, and objectives.  (Turgut & Mert, 2014).

DIFFERENT EVALUATION OF PERFORMANCE TECHNIQUES

In assessment of performance, there are two sorts of measurements. Actual dimensions, both of which may be directly measurable, and subjective evaluations, which are neither.

The two fundamental types of performance appraisal are traditional methods and contemporary techniques. (Turgut & Mert, 2014).

Traditional Methods

Conventional methods are some of the most recognized ways of assessing performance. The main basis of this method is a study of the employees' personality characteristics. It could include information, initiative, dedication, leadership, and judgement. 

Ranking Technique

So according to Dessler. (2011),  The primary basis for evaluating employees is how well they demonstrate a specific characteristic, choosing top, then smallest, and so forth until all evaluated

Presented Grading Levels

Paterson designed a visual scale that promises reliability and stability across time, practicality and usefulness.  Bradshaw in  1931 An examination of the graphic rating scale's enhancements, which  “behaviorism”  to serve as a basis for the scales and improve the trait's clarity. In 1972, Flynn was advised that the highest-quality ratings are achieved on the five to nine range points.  As stated by Dessler. (2011), A scale named the Graphic Rating Scale establishes many characteristics and a range of outcomes for each. The staff member is then graded by selecting the score that best reflects how well they handled every aspect.

Technique for Critical Event

The Critical Event Technique is a collection of methods designed to clarify human behavior by collecting accounts of events that are especially significant and satisfy a set of carefully established criteria. The process for recognizing significant incidents that took place while a job was being performed may be either personal or mutual among the user and the assessor. According to (Dessler et.al, 2011). Critical Incident method is keeping a record of

Method of assessment of performance called the checklist that consists of a list of things, where each regulates an aspect of an organization or event. The quality could or might not exist, possibly it may be discovered to varied degrees utilizing a straightforward scale, including the yes-no method.(Amin, et al.2015).

New Techniques

To enhance traditional procedures, advanced methods were developed. It made an attempt to address the prejudice and subjectivity of the outmoded methods.

Managing by Objectives

There are actually three components to it: object formulation, execution process and performance feedback. adopting a systemic strategy MBO(SAMBO).SAMBO includes seven elements: strategic planning and hierarchy of objects, setting objectives, planning for action, implementation of MBO, control and appraisal, subsystems, and organizational and management development (Turgut and Mert, 2014).

Behaviorally Anchored Rating Scale (BARS)

BARS were presented by Smith and Kendall in 1963 researchers who have an interest in the subject of the validity and reliability of achievement ratings. Comparing to plain numbers, behavioral anchor scales are more revealing. Operationally and mathematically, behaviorally anchored aspects of performance can be separated from each other. Rater isn't going to be the judge, primarily an observer. BARS help the rater in selecting specific instances of good and bad workplace conduct that can be used as examples when clarifying a rating. BARS indicate different levels of performance for every aspect of performance using behavioral statements or actual instances. (Turgut and Mert, 2014).

Accounting for Human Resources

Human resource accounting was initially established by Sir William Petty in 1691.But research into true human resource accounting began in the 1960 by Rensis Likert. Prof. Flam holtz defines human resource accounting for people as an organizational resource. The main theory underlying the HRA is: Humans are an organization's or business's most significant asset, Information on assets and the value of human resources can be useful for decision-making within an organization. (Tambunan et al., 2022).

360-Degree Assessment

'360 degree feedback', also known as 'feedback from multiple sources,' is an appraisal method that depends on the opinion of an employee's managers, colleagues, and subordinates, sometimes customers, suppliers and/or spouses” (Yukl and Lepsinger, 1995). Many companies are combining various sources of performance appraisal information to career create multirater or 360-degree-appraisal and feedback system. 360-degree When giving employees feedback, the objective is to provide employees the most accurate overview of their performance possible. Supervisors, peers, subordinates, customers. Although a360-degree feedback can be useful for both developmental and administrative purposes, The majority of companies begin with a sole focus on development. Employees may be understandably nervous about the possibility of everyone “ganging up” on them in their evaluations. For example, a Chicago company allow managers and employees to develop performance plans, goals, and objectives, and then evaluate their growth over time. Managers can see all of an employee’s goals and action steps on a single screen, and self-appraisals and multiple-rate reviews can be combined into a 360-degree format. Having evaluated the way an employee performed against each target, raters can provide summary comments in three in three categories (Snell, Bohlander,andVohra,2012).

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In conclusion, each approach has benefits and drawbacks, thus employing many ways improves the precision and sincerity of the evaluation process. In order to decision making and determining the best appraisal method, a question should be answered: “The best for what?” It suggests the evaluation procedure should achieve a specific aim or assess a particular performance? Therefore, the manager should determine the organization’s goals, objectives and expectations of performance appraisal. Performance appraisal objectives are usually evaluating and nurturing. On the other hand, an effective evaluation technique should be reliable, trustworthy, and error-free. Moreover, it can be able to compare employees between them and organization’s parts (Jafari, Bourouni and Amiri, 2009, p.95).

References list

Amin, M. R., Hossain, M. M. & Islam, M. F., (2015). Evaluating the Effectiveness of Weighted Checklist Method as a Tool of Employee Performance Appraisal: Evidence from Prime Bank Limited. 6(7).

Aggarwal, A. & Thakur, G.S.M. (2013) Techniques of Performance Appraisal-A Review International Journal of Engineering and Advanced Technology (IJEAT) Volume-2, (Issue-3) [online].Available at:https://www.researchgate.net/publication/264458875_Techniques_of_Performance_Appraisal-A_Review [Accessed on 20th of November 2022]

Dijk, D. V. & Schodl, M. M. (2015) International Encyclopedia of the Social & Behavioral Sciences (pp.716–721) 2nd edn. Oxford, Elsevier [online] Available at: https://www.researchgate.net/publication/282613144_Performance_Appraisal_and_Evaluation [Accessed on 19th of November, 2022]

Mukherjee, J. (2012) DESIGNING HUMAN RESOURCE MANAGEMENT SYSTEM (p.140). SAGE, United Kingdom.

Snell, S., Bohlander, G. and Vohra, V.(2012) HUMAN RESOURCE MANAGEMENT A South-Asian perspective (pp. 322-323). Cengage, Dilhi.

Tambunan, T.S., Ginting, P., Sirojuzilam, S. and Absah, Y. (2022). Analysis applicability of 360-degree feedback performance appraisal as a new technique performance appraisal for civil servants. REVIEW OF MANAGEMENT, ACCOUNTING, AND BUSINESS STUDIES, 1(2), pp.30–39. doi:10.38043/revenue.v1i2.3645. [Online] Available at: https://www.researchgate.net/publication/363879133_Analysis_applicability_of_360-degree_feedback_performance_appraisal_as_a_new_technique_performance_appraisal_for_civil_servants_iepl%5BgeneralViewId%5D=9af0mvYUhB2stBEqdXP1cDUL2dMgKZ5oO3pQ&_iepl%5Bcontexts%5D%5B0%5D=searchReact&_iepl%5BviewId%5D=061UxU9oa6WFcB11x8p34qwMvnbHNCw1fG2I&_iepl%5BsearchType%5D=publication&_iepl%5Bdata%5D%5BcountLessEqual20%5D=1&_iepl%5Bdata%5D%5BinteractedWithPosition2%5D=1&_iepl%5Bdata%5D%5BwithoutEnrichment%5D=1&_iepl%5Bposition%5D=2&_iepl%5BrgKey%5D=PB%3A363879133&_iepl%5BtargetEntityId%5D=PB%3A363879133&_iepl%5BinteractionType%5D=publicationTitle [Accessed on 19th November 2022].

Turgut, H. and Mert, I.S. (2014). Evaluation of Performance Appraisal Methods through Appraisal Errors by Using Fuzzy VIKOR Method. International Business Research, 7(10). doi:10.5539/ibr.v7n10p170.[Online] Available at: https://www.researchgate.net/publication/259368087_Role_of_Fuzzy_Techniques_in_Performance_Appraisal_of_Teaching_Staff?enrichId=rgreq-10e8e55c5ef903321e94dbf418d80f7b-XXX&enrichSource=Y292ZXJQYWdlOzI1OTM2ODA4NztBUzoxMDI2NzE0NDQ4NzMyMjRAMTQwMTQ5MDE4ODYwMA%3D%3D&el=1_x_2&_esc=publicationCoverPdf [Accessed on 19th November 2022].

Winston  and  Creamer,(1997).  Performance  Appraisal.  Available  from:http://filebox.vt.edu/users/dgc2/staffinghandbook/performanceappraisalsingleunit.

Yukl, G and Lepsinger, R. (1995) . How to get the most out of 360° feedback. Training, 32(12), pp.45-50