Different performance appraisal methods include MBO, graphical rating scale, and essay. The method chosen depends on the organization’s needs and goals. MBO aligns employees with corporate goals, graphical rating scale evaluates specific behaviors, and essays provide a thorough evaluation if done correctly. Choosing the wrong method can result in reduced morale and high costs.
Different types of performance appraisal methods include management by objectives (MBO), graphical rating scale, and essay. The type of performance appraisal method an organization uses depends on its specific needs, organizational structure, and long-term goals. For example, an organization may find that it receives information in a more useful way using the essay type of performance appraisal methods, but a different organization may find that this type is prone to have excessive rater bias. Each of these performance appraisal methods has different strengths and weaknesses, so organizations need to pay close attention before selecting which type to implement. Selecting the wrong method can result in reduced employee morale, frustration among employees and raters, and the high cost of switching to a new method later.
Management-by-objective (MBO) performance appraisal methods are used by management to align employees with corporate goals. This requires the organization to set quantifiable goals for the business and departments as a whole and then assign goals to specific employees. These employees are provided with measurable and achievable goals, which will be monitored and evaluated in the next performance review. During the review, employees are encouraged to provide management feedback on their future performance and expectations.
Graphical rating scale performance evaluation methods are used in most organizations. These assessments are designed so that employees are evaluated on specific behaviors or performance, such as ability to work as a team, technical skills, and completing projects on time. The appraiser for this type of valuation can be the supervisor, department manager, team, or even the employee. This type of assessment is popular because it allows for easy employee comparison, is simple to develop, and is low cost to implement. Successful graphical rating scale ratings minimize the effect of bias by training raters on how to rate, requiring answers that can be backed up quantitatively, and asking questions specific to the employee’s job.
The essay types of performance appraisal methods are helpful in obtaining a thorough evaluation of employee performance, when done correctly. They are generally used to justify qualifying an employee for awards or termination, but they can also be useful for tracking performance. The key to creating a good essay performance evaluation is to request verifiable evidence of the evaluator’s statements. Otherwise, essays may include biases that more reflect the relationship between rater and employee rather than actual performance. This method is unstructured and lacks standardization, so companies may find it difficult to compare employee performance or determine whether performance aligns with company goals.
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