Performance evaluation (PE) is key factor in improving the quality of work input, inspires staffs make them more engaged. PE also introduces a foundation for upgrades and increments in the development of an organization and employee succession plans. Performance appraisal system varies according to the nature of the work and designation within an organization (Adnan and Mohamed, 2014, p.966).
There are two types of measures are used in performance appraisal: Objective measures which are directly quantifiable and Subjective measures which are not directly quantifiable. Performance appraisal can be broadly classified into two categories: Traditional methods and Modern methods (Ashima and Gour, 2013, p.617).
Traditional and modern performance appraisal methods
According to the Adnan and Mohamed (2014), Traditional Methods and Modern methods described as, Traditional methods are comparatively older methods of performance appraisal. These methods were past oriented approaches which concentrated only on the past performance. Modern Methods were formulated to enhance the conventional methods. It tried to enhance the shortcomings of the old methods such as biasness and subjectivity. The performance appraisal methods are illustrated in figure 1.0.
Source:
(Jansirani, Hatrikrishnan, Jaya and Saisathya, 2013, p.12)
360 - Degree Feedback
Multisource (360 Degree) appraisal is one of the most widely used PA techniques in today’s organizations. With this technique, the appraisal of an employee does not rely solely on one source but on multiple sources such as managers, peers, subordinates, and clients. Using the multisource technique helps evaluators collect a range of views regarding an employee’s performance, with each source adding a unique perspective (James, 2015, p.717).
As mentioned by Sajjad (2016) A number of companies have used or are using 360-degree feedback for their performance appraisals and have derived a lot of benefits while others cannot. This is not only due to the weaknesses inherited on the technique but also on the way of using and who are using it.
360-degree feedback opens a way towards the success for the organization. It is an evaluation process where the feedback is taken from worker, superior, peers, subordinates and customers. After the evaluation is over usually the results are shared with the worker by the manager. 360-degree feedback is basically conducted for two purposes, for assessment as well as development (Monalisa, 2015, p.112).
Figure
1.1: Full circle of sources - 360-degree
feedback.
Source: (Kankana, 2006)
Typically, performance appraisal has been limited to a feedback process between employees and supervisors. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has shifted to employee feedback from the full circle of sources depicted in figure 1.1. This multiple-input approach to performance feedback is sometimes called “360-degree assessment” to connote that full circle (Kankana, 2006).
Figure 1.2 describes how
Google Inc. uses a 360 -degree performance assessment with six key performance
indicators.
Figure 1.2: Performance Assessment at Google.
Source: (Aguinis, 2019, p.25)
Reference List
Adnan, S. and Mohamed, K. (2014)
Performance Evaluation – Methods and Techniques Survey (Volume 03 – Issue 05)
International Journal of Computer and Information Technology.
Aguinis, H. (2019)
Performance Management for Dummies- John Wiley and sons Inc. Hoboken, New
Jersey.
Ashima, A. and Gour, S.
(2013) Techniques of Performance Appraisal (Volume 02 -Issue 03) (IJEAT).
James, D. (2015) International
Encyclopedia of the Social & Behavioral Sciences, (2nd edition, Vol 17) Oxford.
Jansirani, S., Hatrikrishnan, R., Jaya, K. and Saisathya, A. (2013) A Study on Performance Appraisal System
at Wipro Infrastructure Engineering Pvt Ltd (Volume 9, Issue 3) Department of
Commerce, Vels College, Pallavaram, Chennai -117.
Kankana, M. (2006) 360 -
Degree Appraisal” – A Performance Assessment Tool, Praxis Business School.
Monalisa, M. (2015) 360
Degree Feedback (Vol 02, Issue 01) School of Management, KIIT University,
Bhubaneswar, Orissa.
Sajjad, H. (2016) 360
Degree Feedback as a Technique of Performance Appraisal
(Vol 06, Issue 13) Asian Business Review.
A well-organised elaboration of the theory. The performance appraisal is one way to help establish where to focus educational and development efforts. Performance appraisal results can be used to shape and design programs targeted at individual employees or groups of employees with similar needs (Narcisse & Harcourt, 2008). According to (Sajjad, 2016) the Organisations need to keep their Human Resource at their highest efficiency level to survive within today’s competitive world. In order to the above need, 360-degree appraisal plays a vital role in providing in-depth information and evaluation about the performance of employees and development plans and requirements of employees in the future for the Organization (Baroda et al., 2012).
ReplyDeleteHi Nirmika, Moxley (1996) states about making managers more effective by using 360-degree feedback. 360-degree feedback is actually one part of the management development process. At the same time 360-degree feedback provides an in-depth feedback which helps in encouraging and motivating efforts by the individual themselves.
DeleteHi ganith, agree with you, adding to your points, mentioned performance appraisal methods can be categorize under two methods, Traditional and Modern methods. Tradition methods are older method while including Raking method, Graphic Rating Scales, Critical incident methods and Narrative methods. whereas Modern methods of performance appraisal are Management by objective, Rating system, Humans resource accounting, Assessment center, 360 Degree and 760 Degree (Aggarwal and Thakur,2013).
ReplyDeleteHi Dineth, Thank you for your valuable comment, further the success and failure of an organization depends upon the performance of an employee. So, the performance appraisal has a vital role in the existence of an organization. Continues evaluation of an employee performance is helpful to the employee as well as organization. By using the modern methods of performance appraisal in companies which have a wide scope than the traditional method and provides a more comprehensive and accurate evaluation of an individual (Rajitha, Balachandar and Ranjithkumar, 2019)
DeleteWell explained article.adding a point to it,One of the other modern performance appraisal methods is Human-Resource (Cost) Accounting Method. Human Resource Accounting is the process of assigning, budgeting, and reporting on an organization's human resource costs, that includes wages, wages, and training expenses. Further, it’s basically the activity of knowing the costs invested for employees in their training, recruitment, payment of wages and other benefits paid and knowing in return their contribution to their profitability to the organization (Kumar and Awasthi, 2018).
ReplyDeleteThank you for your valuable comment Amila, Further for an organization or institution to realize its goals, it must have the resources it needs and use them effectively. Resources available to a manager are human, financial, physical, and information. Human resource departments typically include individuals with a variety of knowledge, skills, and abilities that are expected to perform work activities to contribute to achieving the organization's objectives (Tahiri, et al., 2020)
DeleteGreat post Ganith. According to Smither and colleagues (2005), multisource feedback had a minor impact on performance improvement. Furthermore, Brett and Atwater (2001) discovered that when ratings were low, employees reacted negatively, exhibited anger, and rejected the feedback results in a longitudinal study on multisource feedback. Employees did not react positively even when their ratings were high.
ReplyDeleteHi Janakan, Thank you for your reply, also MSF is an opportunity to develop shared understanding in an organization. Raters and assesses should help develop the system together and should be trained together in dealing with improving performance, in areas shown to be weak. Investigators’ initial attempts at wording will result in some domains being less consistently interpreted than others. There should be an ongoing dialogue between all parties in the organization, to help standardize understanding, and to help develop future iterations of the system (Wood, et al., 2006)
DeleteHi Ganith, the way you approach for the Methods of Employee Performance Evaluation is great. To adding that the 360-degree feedback evaluation method is a popular performance appraisal method that involves evaluation input from multiple levels within the firm as well as external sources. (Antonioni, 1998).
ReplyDeleteDear lakshan, adding some points, 360-degree feedback appraisal method was introduced to help employees with the information needed to deal with rapid change and to combine individual talent with organizational objectives. At present, many reputed firms around the globe fully utilizing it as part of specific competencies and requirements to meet their objectives (Hosain, 2016)
DeleteGanith, yes. Employee performance appraisal is also important for firms to promote employee productivity and improve outcomes, according to Baker (2013). Performance appraisals are an annual process in which an employee's performance and productivity are assessed against a set of goals. Performance management is critical, not only because it determines an employee's wage increase and promotion, but also because it accurately assesses an employee's talents, strengths, and weaknesses.
ReplyDeleteHi Isuru, further performance appraisal is an official planned meeting between an employee and his supervisor that takes place from time to time to determine the accomplishment and capacity building requirements of the employee, also performance appraisal is one of the mechanisms available to a manager to review worker’s output. They emphasize that when performance appraisal is carried out correctly it helps the payment system, and this could enhance efficiency of workers (Dauda & Bayuasi , 2020)
DeleteAgreed Ganith. I would like to add more points. Better understanding of the main goals of employee performance evaluation as an indispensable component of managing worker in modern organizations. It is suggested that most employers traditionally use a great number of appraisal methods to assess their workers performance. Employee performance evaluation is one of the burning problems faced by employers in today’s organizational environment. Therefore, it is very important to select the right employee evaluation method that suits for the organization (Kankana M. 2006).
ReplyDeleteHi Dileep, for workers to improve their performance following an appraisal, they must accept the appraisal rating and be willing to change their performance accordingly. Ensuring workers’ reactions such as satisfaction, commitment, acceptance of the appraisal, and trust in management could help organizations achieve the primary PA purpose of improving performance (Dijk, 2015).
DeleteWell said Ganith. Under 360 degree appraisal, performance information such as employee's skills, abilities and behaviors, is collected "all around " an employee, from his supervisors, subordinates, peers and even customers and clients (Smriti Chand,2019).
ReplyDeleteThank you for your comment Upeksha, Also With this technique, the appraisal of an employee does not rely solely on one source (e.g., manager) but on multiple sources such as managers, peers, subordinates, and clients also using the multisource technique helps evaluators collect a range of views regarding an employee’s performance, with each source adding a unique perspective (Dijk, 2015).
DeleteHi Ganith. Nicely explained. Armstrong & Taylor (2020) describes the 360-degree feedback method which is known as multisource feedback, is assessed and feedback is given by a number of people who may include their manager, subordinates, colleagues and customers. As well as, assessments take the form of ratings against various performance dimensions.
ReplyDeleteHi Gihan, further this method is different from the traditional performance reviews, which provide employees with feedback only from supervisors (Gallagher, 2008). In this method, employees in the company provide ratings. This includes senior managers, the employees, supervisors, subordinates, peers, team members, and internal or external customers (Drakes, 2008).
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ReplyDeleteHi Ganith, would like to add few points as organization performance as you clearly mentioned in the post can be evaluate through performance appraisal (Drogomyretska, 2014), thus there were six modern performance appraisals such as MBO,(Management by Objectives), 360 degree feedback, Assessment Centre method, psychological appraisals, BARS (behaviorally anchored rating scale), Human resource accounting method as well (Majid, 2016).
ReplyDeleteHi Deshani, further behaviorally anchored rating scale (BARS) method is a performance appraisal method that combines elements of the traditional rating scales and critical incident methods; various performance levels are shown along a scale with each described in terms of an employee’s specific job behavior (Eisalou, 2014)
DeleteHi, great article, Performance evaluation (PE) is a critical factor in improving the quality of work input, inspires staff to make them more engaged, and introduces a foundation for upgrades and increments in developing an organization and employee succession plans. Performance appraisal system varies according to the nature of the work and designation within an organization. (Shaout and Yousif 2014)
ReplyDeleteHi Surangi, also Performance management systems are one of the major focuses on business today. Although every HR function contributes to performance management, training and performance appraisal play a more significant role. Whereas performance appraisal occurs at a specific time, performance management is a dynamic, ongoing, continuous process (Eisalou, 2014).
DeleteAgreed with you Ganith , my personal view is performance appraisal is a good tool to motivate an employee. knowing that we are going to evaluate employee tend to perform efficiently. The most important and essential tool of an organization is performance evaluation (Black, S., Gardner, D.G., Pierce, J.L. and Steers, R. 2019)
ReplyDeleteHi Manoj, when a performance management system is used for development, the appraisal information is used to guide the training, job experiences, mentoring and other developmental activities that employees will engage in to develop their capabilities, although it is theoretically possible to have a performance management system that serves both decision-making and development purposes well, this can be difficult to achieve in practice (Pulakos, 2004).
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