What Is Performance Appraisal?

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Performance Appraisal

Understanding that performance Appraisal is the end of the performance management cycle, we can say that it aims to measure the Performance Appraisal of an employee over a certain period of time. Therefore, much of the organizational psychology literature is focused on how to design performance appraisal questionnaires that increase process satisfaction, improve the perception of process fairness, and increase process accuracy .

However, it is necessary to clarify that the analysis needs to be based on the pre-established agreements with the professionals regarding their Performance Appraisal at the beginning of the period considered for evaluation.In order to align expectations, the responsibilities of the function, the goals of each sector, as well as the potential of each employee and the business culture of the business are considered.

As Performance Appraisal must be oriented towards the future, it is divided by most specialists into two main dimensions: results ( outcomes ) and behaviors ( behaviours ).

What Is The Difference Between Results And Behaviors?

For you to easily understand the difference between the terms, think that the results part are “what” the employee does and the behaviors the “how” he produces the results. Therefore, these two dimensions of Performance Appraisal form a backbone of the performance management cycle .

Thus, in order to carry out the Performance Appraisal, it is necessary to develop a series of questionnaires containing questions by one or several Performance Appraisal about an evaluated person that deal with aspects related to the two dimensions.

Behaviors

Behaviors are evaluated by the so-called “competence assessment”, and both the use of understanding and behavior in performance management gained strength in the 70’s and 80’s.At that time, there was still a strong focus on using goals and objectives as a single measure of performance.

However, organizational psychologists along with the HR department felt a lack of a behavioral component to measure how people achieved the given results.This is how the use of skills and behaviors was born . After all, these concepts were already used in the analysis of positions and occupations where the purpose was performance management.

In modern performance appraisals , therefore, there is a component that deals with competences and another with results, and behaviors are normally evaluated one by one, and can be grouped based on common themes.

There are even companies that make the composition between behaviors derived from the values, the critical competences and the functional competences of the Performance Appraisal position.

Results

If evaluating skills is no longer an easy task, evaluating the results is even more complex.Thus, if the company is in a still basic stage of maturity of its Performance Appraisal process, the evaluator can only evaluate the responsibilities and activities delimited.

As an example , let’s imagine a financial analyst. It could be evaluated by producing the error-free cash position reports in a timely manner that it produces.In this case, there would supposedly be 5 options that would evaluate his performance against what is expected of his position, with each of these options saying whether he is doing well or not.

In places where employee responsibilities are measured by  Performance Appraisal indicators , they end up serving as a proxy for employee performance and are used in this portion of the Performance Appraisal.

How Are Performance Appraisal Scales Made?

When we talk about Performance Appraisal, we need to understand that it is necessary to create an Performance Appraisal scale , especially with regard to the issue of behavior.Generally, this scale has three major variables that need to be defined, which are the scale to be used, the label of each of the scale options and the use of behavioral rulers anchored in behaviors.

First, it is necessary to define whether there will be an even or odd number of options in the scale . Bearing in mind that scales with even numbers leave no room for the “middle ground”, which makes many companies not opt ​​for them.

Another point is the scale size . For larger scales such as 5 options make the Performance Appraisal more accurate as each evaluator can be more judicious in differentiating their assessments.

Also, it is necessary to define the label of the chosen options. They can, therefore, be numerical, going for example from 1 to 5, or be replaced by a scale of concepts such as: “far below expectations”, “below expectations”, “above expectations” and so on.

If the company wants, it can keep numbers and concepts side by side, and there are two major types of scales that can be chosen, relative and absolute .

Black businesswoman addressing colleagues at a board meeting

Relative Scales

Relative scales , as the name suggests, ask the person to be judged relatively in relation to something or to their peers.For example, when the scale is relative to something, it might be what is expected of the job. In relation to the pairs, the comparison will be made in relation to the group.

However, this second option is considered inefficient by some experts, since employees Performance Appraisal can occupy different functions that are difficult to compare .

Absolute Scales

In the case of absolute scales, the evaluator will evaluate the evaluated in an absolute way , without any relation to what is expected or with other evaluated.In this type of assessment, it is quite common to create a “bad”, “average” and “good” scale.

There are companies that have more sophistication that use the so-called Behavior-Anchored Rating Scale .These scales are descriptions of the observable behaviors in each of the rating scale grades/concepts.

Types Of Performance Appraisal:

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Performance

Did you know that there are different types of performance appraisal? Working with people management is, without a doubt, something complex and requires knowledge. For this reason, it is essential to use different tools that help analyze the current situation of the company and identify the points that require greater attention.

The methodologies that evaluate the performance of employees and managers are important, as they help the organization to obtain answers based on palpable parameters. In other words, they make sensations and impressions become numbers and percentages to be worked on in a punctual and accurate way.

If you want to adopt a more strategic and efficient people management, this article will be of great help. In it, we will show the main types of performance evaluation, explaining how each of them works and what are the benefits of adopting them in your company. Enjoy the content!

The most Efficient Types Of Performance Appraisal

Evaluating the work over a semester or year is essential to know mistakes and successes — and also to act strategically on them. To analyze the performance of employees, there are numerous ways and tools, of which we will list the most relevant below.

Self-Assessment

Self-assessment is quite simple. In it, the employee must reflect on his performance over the period to which it refers and honestly say what he thinks about his results. It is an excellent opportunity for him to get to know himself as a professional and find his strengths and weaknesses, which must be worked on for correction and professional evolution.

Team performance evaluation

Team performance appraisal is similar to self-appraisal, but involves the entire team. Therefore, everyone should get together to check how the results were presented and what points to improve. Using brainstorming at this point helps a lot to identify issues and find the best solutions.

 Evaluation By Immediate Superior (Also Direct Evaluation Of The Employee Or 90º Evaluation)

Another of the most important types of performance evaluation is by immediate superior. In it, the employee is analyzed directly by his manager, the one who monitors his tasks daily.

However, this evaluation is only really efficient when there is a real proximity between manager and employee. If this prerequisite is fulfilled, it is possible to count on a guarantee of regularity in the evaluation criteria, more effective communication between the parties involved and accurate and objective feedback.

It is important to note, however, that, depending on the type of leadership, this may result in partial data. Thus, it is good to ensure that the assessment is carried out in teams that really have a relationship of trust and security with their managers.

It is worth noting that employee evaluation is the most traditional. After all, nothing is more common than the scenario in which the employee is analyzed according to the view of his immediate manager, right? This method involves observing and noting their behavior with regard to the performance of their tasks and their relationship with teammates and superiors.

Management Performance Evaluation

Feedback is important to all employees, including leaders . Therefore, the evaluation of management performance is indispensable. Aspects such as clarity of planning, feasibility of necessary resources and quality of access and communication are addressed in this model.

 Employee Satisfaction

Analyzing employee satisfaction can be very revealing, as it brings up their dissatisfaction with the work environment and interpersonal relationships. Taking into account the opinion of employees not only allows the weaknesses of the sectors to be identified, but also helps to engage them with regard to the corporation.

Joint Or 180º Assessment

The 180º assessment is carried out in a format that allows the manager and employee to analyze the issues together. In general, it is like adding the self-assessment and the 90º assessment to carry them out at the same time. It is a widely used practice, as it enables a valuable exchange of information between leaders and their team. It is also a good opportunity to strengthen relationships and redefine goals and plans.

Competency Assessment

Competency-based assessment is aimed at analyzing employee performance in relation to what the company expects from someone who occupies their position. It addresses two types of core competencies.

The first is behavioral, which generally has the same requirements for all company positions and is linked to organizational culture . The second is the technique, which varies in each position. It checks if the person has the necessary knowledge and skills for the development of their activities and how much they have sought to evolve over time.

Evaluation By Objectives

Evaluation by objectives is a little different from the others. While most are longer and involve the entire current scenario of the organization, this modality focuses on a series of goals to be achieved within a certain period of time.

The main performance observed is among teams working towards these goals. Thus, the analysis covers the quality of the result, the time spent in each step and in the activity as a whole, the integration between employees during the execution of the service and so on.