Companies use different methods of performance appraisal methods to identify strengths and weaknesses. Employees are conducted by several methods:
Management by objective (MBO)
This method is based on the focal point agreed by managers and employees and based on the objectives, and time line, the findings final results are in. this method is effective because of the objectives transparency with employees and inputs given to help them grow.
Ranking Method
This method of ranking scale is grading performance simply by check boxing with numbers or alphabet orders. Usually most employees are rated in the middle and worst and best performers are identified. This method could cause rivalry between workers and could be a disadvantage. For lower performer it could also cause motivation problems because of labeled as the worst performer.
Narrative method
This method allows managers to give feedbacks on written forms which are essential for employees to realize areas of improvement. This method should include objectives of the process, structure and consistency of the appraisal to meet goals.
Possible problems affecting performance appraisals
Ranking and Rating systems are used in a lot of companies to determine performance. Ranking systems are less used in companies from ratings which are used frequently and they are still challenging. Let’s take a look at why:
1/Subjective vs. objective
When rating performers at work, the rater should evaluate workers objectively and based on concrete information, but since ratings systems allows raters to be subjective by using scales from 1 to 5, it carries a heavy burden on the real performance evaluation. One of the reasons for error is differed perception on area under discussion, one’s evaluation of ‘creativity’ or ‘self- starting ability’ is different from the next evaluator of what a good performance is which ultimately creates wrongful ratings. And