Employee appraisal is a formal assessment of the performance of a member of staff which aims to establish clear objectives to achieve for each employee.
Results of different types of employee appraisals are meant to have a positive effect on morale and job satisfaction in a business organization. A constructive dialogue that offers the individual both recognition and encouragement should be developed throughout the appraisal process.
When done right, the appraisal process will also result in feedback on training opportunities for the worker as well as identify employees who have the potential for promotion.
Main types of employee appraisal
There are many different types of employee appraisals, each with its own strengths and weaknesses. Some of the most common types of employee appraisal include:
- Formative Appraisal. This type of appraisal is an ongoing process which enables managers and appraisees to engage in conversations, encourage them to think about own contributions to the workplace to make adjustments to improve overall attainment. It includes helping employees to identify their strengths and weaknesses and, monitoring the performance of employees’ learning through observations, conducting aptitude testing and recognizing areas where staff are struggling so that any areas that need developing to be addressed promptly.
- Summative Appraisal. A summative appraisal is a written summary of an employee’s personal performance at work – achievements during the year and recommendations for improvement including targets for a subsequent appraisal. It aims to hold staff accountable for their work as contributions of workers are compared against predetermined standards to make a professional judgement of a worker’s competency.
- 360-Degree Feedback. This type of appraisal is a more complete assessment of the employee performance as it gathers feedback, evidence, comments and opinions from all the employee’s key contacts. This includes peers, subordinates, line managers or other parties such as suppliers or customers who have direct contact with the employee. 360-Degree Appraisal relies on information obtained by the use of questionnaires or interviews focusing on the core competencies of the appraisee. Sources must be considered when reviewing the feedback. This feedback may not be suitable for all businesses because in some cultures, subordinates do not appraise their seniors.
- Self-Appraisal. This type of appraisal involves employees rating themselves based on predetermined criteria and setting realistic targets for improvement. This is easier for extrovert workers than it is for introverts as appraisees find it personally or culturally awkward to be expected to be honest about their strengths and weaknesses when rating themselves.
- Peer Assessment. This type of appraisal involves the employee’s peers evaluating their performance. This can be a helpful way to get feedback on the employee’s interpersonal skills and teamwork abilities.
- Behaviorally Anchored Rating Scale (BARS). This type of appraisal uses specific examples of the employee’s behavior to rate their performance. This can help to reduce bias and to ensure that the appraisal is fair and objective.
In addition to these general types of appraisals, there are also a number of more specialized appraisals that can be used to assess specific aspects of employee performance. For example, there are appraisals that focus on leadership skills, customer service skills, and technical skills.
