Performance evaluation is beneficial for both the employees and the employer. Through evaluation, the employees can know the areas in need of improvement and they can focus on mending those areas to perform better. The employers can evaluate the employees’ performance to provide additional training and proper performance-based rewards.
There are various methods for evaluating employee performance. You can apply just one of the methods but it is advisable to utilize multiple methods to get the most accurate results. Of course, each method brings with it hesitation regarding validity and effectiveness. For that reason, below is a guide to help you better understand different methods.
Now, let’s discuss the most effective methods of evaluation for employee performance:
Critical Incident Method:
In this method, the managers are told to maintain the records of the positive and negative behavioral performance of employees for different time periods. These records are evaluated to get the final report.
This method is very much helpful for tracking an employee’s step-by-step development. The identification of the additional training required becomes easy in this process. In this method, the higher ranking members of the organization can deliver periodic feedback which enables the employees to improve upon their weaknesses.
One limitation of this method is that there is a possibility of generating reports with prejudice. That is why this method is not solely dependable.
Using this method, an employee is evaluated on the basis of feedback from his immediate supervisors, peers, and from the members of the other departments with which he works on a regular basis.
By using this method, the acceptability and compatibility of an employee in the company environment can be judged. It can also be judged whether an employee’s performance differs when he deals with other departments or not. The multi-source data helps evaluate an employee’s interpersonal and team building skills.
The limitation of this method is that the feedback may vary person to person because here, feedback is delivered on the basis of the personal point of view.
Checklist is a set of performance evaluation questions that are given to the managers. The questions with the options of “yes” or “no” responses are asked in order to gain a better idea of the manager’s opinion about every employee’s particular skills. Using this method, the opinions are collected and evaluated by the HR department.
However, if a manager is prejudiced against any employee, there can also be a chance of not getting accurate information in the report.
Performance Test Method:
A test of knowledge and skills of the employees is taken with this method. The test can be taken in written form or the employees can be asked to show the actual presentation of their knowledge and skills in the practical field. The test needs to be valid, reliable, and efficient in judging the employees’ performance level.
This method is efficient enough to judge the potential of each employee. But there is a less scope to judge an employee’s actual performance in variable situations.
In most of the cases, employees are not aware of the areas which need personal improvement. Awareness of the limitations helps encourage employees to take the necessary steps to overcome them. The self-evaluation method reveals how much an employee is aware of his/her limitations.
Here, the employees are asked to judge their own performance. A set of multiple-choice questions is given based on the performance evaluation where they are to answer what they believe about their own competency and performance.
This method opens the scope of discussion with the employees. Discussion makes the problematic areas clear. It also helps take the effective measurements to improve the skills and talent collaboratively.
One drawback of this method is that you cannot solely depend on this method. You need to combine this method with other methods to get the desired result.
Now, we can see that there is no perfect method for evaluating the employees’ actual performance. To do the evaluation accurately, you are strongly recommended to use all the previously mentioned methods systematically. Only the use of multiple methods can help overcome the limitations of each method and achieve perfection in the evaluation process.