Check out the most useful performance appraisal methods, learn how to use them and obtain great results

6 useful performance appraisal methods

Performance evaluation process is the assessment of personal fulfillment in a precise way to get accurate results. It is a developmental tool that is commonly used to test the development of both the employee and the organization at any stage. This tool measures performance against such factors as job knowledge, supervision, quality and quantity of output, leadership abilities, initiative, dependability, co-operation, judgment, etc.


Various useful performance appraisal methods

  • Assessment method - This method tests the employees in social situations especially managers who have to deal with their subordinates in their day to day affairs. The test helps the employers understand the capacity and capability of every individual in a social setting. It also gives the employer an insight into the personality of the employee like tolerance, acceptability, openness and many others.
  • Behaviorally anchored rating scale - This modern appraisal technique is one of the best equitable method compared to all other methods. It combines both the essay evaluation and quantifiable techniques like rating scale. It is more expensive than other methods but guarantees precision and effectiveness.
  • Critical incident technique - This method is similar to the essay evaluation process that involves making both positive and negative comments to stimulate the employee at the workplace. These observations help evaluate the employee's proficiency in his day to day activities. The direct supervisor uses this method that the employee is serving under.
  • Essay evaluation - This method is way too affordable and useful to evaluate workers especially if they are new. It involves writing a detailed descriptive essay of the performance the employee's direct manager. It concentrates on describing the various strengths, weaknesses, attitude and behavior of the staff towards their duties.
  • Human asset accounting method - This method is very commercial and practical regarding performance appraisal methods for big organizations. The individual is assessed on how much revenue he/she generates or the number of satisfied customers or leads he/she produces. It is a very fair process directly indicating the profitability of the company. Most startups have adopted this method to keep the employees seriously committed to their work.
  • Management by objective - This is a less time-consuming process that is cost effective and involved setting up of goals and objectives for the staff either by the employer or by his manager or by both of them. This method helps the workers perform better because they are well aware of their goals and knows the quality and quantity required.