There is no doubt that an employee’s performance is the foundation and primitive cause for any organization’s success. Many organizations invest their time, money, and energy in advanced performance appraisal methods. In this article, let’s take a close-run towards the various methods to access employee’s performance used by leading companies.
What is Employee Performance Appraisal?
Performance appraisal is the process of documenting, evaluating, measuring, driving and developing employees’ performance in a systematic manner.
In other words, it can be termed as an employee appraisal system, performance review, or performance management system.
Benefits of performance appraisal
Performance appraisal has three major benefits for both the employer and the employee.
1. Selection Process validation:
Performance appraisal helps the managers to validate the selection process and it also helps to recommend changes and improvements to be made in the existing process.
A periodic review of the selected employee’s performance helps to know the strength and weaknesses of the performance appraisal methods.
2. Compensation
The employee appraisal system helps to identify the best performers and to compute their compensation package based on the merit system. It boosts the employee’s contribution to the company. On the other hand, the employees who lag behind in performance are identified and training policies and programs are framed accordingly.
3. Employee’s self-development
Self-development is one of the best benefits for an employee through positive feedback, promotions, rewards, and transfers. The performance appraisal methods help in identifying his area for improvement. Along with the manager, an employee can devise training programs to enhance his skills.
10 New Performance Appraisal Methods
When it comes to an Organisation’s success, predominantly it relies on the employee’s performance. There is a boundless number of performance appraisal methods available to evaluate, review, measure, and develop an employee’s performance. Let’s take a look at the 10 recent performance appraisal methods and how they benefit both the manager and the employee.