Question

Describe any three techniques for appraising performance with relevant examples. Discuss the usefulness and suitability of these techniques for various designations within an organization.

Answer 1

The three most prominent techniques for appraising performance can include :

1) Management by objectives: This is an appraisal method wherein both managers and employees work together to discuss the organisational goals, provide recommendations on issues facing business, identify the weaknesses of workplace and establish clear cut targets for employees which they attempt to accomplish in the desired and most efficient manner. After setting clear targets or objectives, the employees monitor and evaluate them to ensure they are relevant , feasible and effective in the long run.

For example the business wants to introduce new sales quota for marketing personnel, it will organise a meeting with sales personnel to take their inputs and discuss the potential of market, capabilities of each sales agent , customer demand in area and their ability to attain certain sales targets in order to set up the appropriate, realistic and attainable sales quotas for marketing department which will in turn also increase efficiency in performance through matching targets with capabilities of personnel. Therefore Management by objectives can prove most suitable for jobs or tasks which are quantifiable or measurable against some standards. This performance appraisal technique is also very suitable for evaluating quantitative and qualitative output of managers, directors, and executives.

2) 360-Degree Feedback :

This is an another performance appraisal method which attempts to evaluate the performance outputs and efficiency of an employee through undertaking feedback collected from peers, co workers, colleagues , customers or direct reports from supervisors regarding the efficiency, knowledge, abilities and skills of rhe employee while working on that particular position. Therefore evaluation method eliminates scope of personal bias as the evaluation is the output of different parties involved.

For example a survey is conducted all over the marketing staff to evaluate the performance of a particular sales executive and such inputs are used to judge overall effectiveness. This method of appraising is very suitable for production and operations department where the relationships between employees is not complex but well defined and simple.

3) Behaviorally Anchored Rating Scale (BARS)

Behaviorally anchored ratings scale is another performance appraisal method that can prove quite effective in evaluating an employee. Here certain specific behavioral characteristics such as discipline, risk bearing capacity, problem solving score, anlytocal thinking , stress management etc act as a yardstick to measure and evaluate their capacity to perform a particular job requiring such behavioral characteristics essentially . Therefore an individual’s performance is depicted by demonstrating of such behaviours which are compared against the predetermined standards that are applicable to their role and job level.

Bars can prove suitable for any business organization of any size or nature and within any area may that be finance, quality management, marketing, production because it is effective enough once the workplace is able to identify some critical incidents that depict desired workplace behavior.

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