Performance appraisals are a way to provide feedback on an employee's performance to both the employee and the management of the organization. The benefits to the organization are that it can base major decisions like promotions, terminations, transfers, wage hikes and training needs on this information. The employees get an opportunity to find flaws in performance and rectify them. The basic aim of any appraisal system is to have a smooth and open flow of communication within the organization. Each has its relative merits and demerits.
Confidential Reports
This technique of appraisal is an individual form and is perhaps the oldest method. Prepared by the employee's senior in a confidential manner, the employee's highs and lows in performance during the past year are evaluated. As this information is kept secret and confidential, the employee is not given a chance to improve upon his performance as he is not notified of the shortcomings in performance.
Critical Incident Technique
This, too, is a type of appraisal for the employee alone. Here, the employee's best and worst incidents of behavior are analyzed annually. These events are the ones that are the most critical in appraising the employee.
Checklist Technique
This is an individual person appraisal form. The superior is given a checklist to mark answers as "Yes" or "No." Typical questions are on the performance and behavior of the employee. The inherent flaw here is that this method allows no scope for subjectivity.
Management by Objectives
The superior here examines measurable and tangible goals at the end of the year. This appraisal form is a multiple person form and measurement of performance of any employee is against her peers. At the beginning of the year, the superior lets his team know of key result areas and results expected. After which, the work is delegated and definition of the authorities and responsibilities takes place.
Paired Comparison
All the employees working in a team are compared against one another. The analysis of their performance is then ranked. The rankings could be either in ascending or descending order of performance.
360 Degree
All the persons who interact with any employee during the course of her work are taken as stakeholders in this method. The stakeholders comprise of the immediate boss, the immediate subordinates, top management and all the people with whom the employee interacts for work. All these people provide feedback on her work and working style. The feedback thus obtained helps the employee improve her performance.
