Performance Appraisal Methods PDF

360-degree Feedback - It is a popular performance appraisal method that involves evaluation input from multiple levels within the firm as well as external sources. In this method, people all around the rated employee may provide ratings, including senior managers, the employee himself or herself,...

360-degree Feedback - It is a popular performance appraisal method that involves evaluation input from multiple levels within the firm as well as external sources. In this method, people all around the rated employee may provide ratings, including senior managers, the employee himself or herself, supervisors, subordinates, peers, team members, and internal or external customers. Achievement Testing - Achievement testing refers to assessments designed to measure an individual\'s knowledge, skills, or competencies in specific areas that are relevant to their job performance. Advanced Interviewing - Advanced interviewing refers to a strategic approach used by organizations to thoroughly assess candidates for employment beyond the traditional interview process. This method aims to gather comprehensive insights into candidates\' skills, competencies, experiences, and potential contributions to the organization. Alternation Ranking - Alternate ranking is the performance appraisal method for employees where assessor selects the best and worst employees based on certain trait/criterion and ranks them accordingly. Applicant Personality Test - Also known as a personality assessment or personality inventory, this test is used to evaluate the personality traits, characteristics, and preferences of job applicants. It aims to predict how well an individual might fit into a specific role or organizational culture based on their personality profile. Appraisal Interview - Appraisal interview is a formal discussion process between an employee and his/her manager regarding performance and other aspects of job role. In this interview, the employer and the employee discuss the performances of the individual and the key areas of improvement and how the employee can grow through a feedback mechanism. Page 35 Definition of Terms Apprenticeship Training - Apprenticeship training is a formalized program combining on-the-job training (OJT) with classroom instruction. It is typically used in skilled trades and professions, where apprentices (learners) work under the guidance of experienced mentors or journeymen to develop practical skills and theoretical knowledge necessary for the job. Background Check - It is a part of the hiring process in which an investigation is carried out to check a potential employee's background, based on criteria such as education, criminal records, past work experiences, etc. This verification is done because organizations often need to confirm if the information provided by the candidate is true or not. Behaviorally Anchored Rating Scale (BARS) Method - The behaviorally anchored rating scale (BARS) method is a performance appraisal method that combines elements of the traditional rating scales and critical incident methods; various performance levels are shown along a scale with each described in terms of an employee's specific job behavior. Benchmarking Jobs - Benchmarking jobs involve comparing job roles and responsibilities within an organization or across different organizations to determine the relative value and pay structure for similar jobs in the job market. It helps in establishing competitive compensation and benefits packages. Bonuses - Bonuses are additional monetary rewards given to employees on top of their base salary, typically based on individual, team, or organizational performance. Buddy System - It is part of the employee onboarding process in which a new hire is assigned a buddy who guides the new hire on the different aspects of the job. It may include making him/her familiar with the office environment and other members of the team. Page 36 Definition of Terms Candidates - An individual seeking employment or appointment to a particular job, role, or office. They manifest interest by submitting an application, usually accompanied by a resume or curriculum vitae. Campus Recruitment - Campus recruitment is an external source of recruitment, where the educational institutions such as, colleges and universities make provision of information to the students regarding employment opportunities. Career Development - Career Development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Case Studies - Trainees are given in-depth descriptions (5 to 30 pages) of the experiences of disguised organizations. This allows them to see the experiences of numerous managers in a short period of time. Central Tendency Error - Central tendency error is an evaluation appraisal error that occurs when employees are incorrectly rated near the average or middle of a scale. Coaching (Understudy Method) - In this method, a superior gives training to a subordinate as his understudy like an assistant to a manager or director. Cognitive Ability Test - It measures the candidate's ability to solve problems and think critically. Compensation Manager - A Compensation Manager is a specialized role within the Human Resources (HR) function of an organization. Their primary responsibility is to design, implement, and manage the organization\'s compensation and benefits programs. Page 37 Definition of Terms Competency Model - A competency model is a framework for defining the skill and knowledge requirements of a job. It is a collection of competencies that define the skills and abilities that enable successful job performance. Contingent Personnel - A contingent personnel is someone who performs tasks for an organization without being formally hired as the organization's permanent employee. Corporate HR teams - Centralized HR units managing HR strategy and policy across the organization. Critical Incident Method - The critical incident method is a performance appraisal method that requires keeping written records of highly favorable and unfavorable employee work actions. Depth Interview - Depth interview is a semi-structured interview, where the candidates have to give detailed information about their educational qualifications, work experience, special interests, skills, aptitude and so forth. Direct Recruitment - Direct recruitment refers to the external source of recruitment, where the recruitment of qualified candidates are carried out by putting a notice regarding job vacancy on the notice board of the organization. Embedded HR teams - HR units integrated into specific departments to provide localized HR support. Page 38 Definition of Terms Employee Benefits Program - An employee benefits program, often referred to simply as benefits or perks, is a set of non-wage compensations provided to employees in addition to their regular wages or salaries. These benefits are designed to enhance the overall compensation package offered by employers and typically include various forms of insurance, retirement plans, wellness programs, and other fringe benefits. Employee Development - Employee development is a process of improving employees' existing competencies and skills and developing newer ones to support the organization's goals. Employee Engagement - Employee engagement refers to the level of commitment workers make to their employer, seen in their willingness to stay at the firm and to go beyond the call of duty. Employee Matrix - An employee matrix, often referred to as a matrix organizational structure, is a management structure where employees are grouped simultaneously by two different operational dimensions. Typically, this involves employees reporting to both a functional manager (based on their expertise or specialization) and a project manager (based on the specific project they are working on). Employee Orientation - Employee orientation is the process of introducing new hires to their jobs, co-workers, responsibilities, and workplace. Employee Referrals - It is the process of hiring new capitals through the references of the employees, who are currently employed within the organization. Page 39 Definition of Terms Employee Selection - Employee selection refers to the process by which organizations choose individuals from a pool of job applicants to fill job vacancies. It is a critical aspect of human resource management aimed at identifying and hiring candidates who are most likely to succeed in the job and contribute effectively to the organization\'s goals. Employee Testing - Employee testing refers to the process of assessing job applicants or current employees through various types of tests and assessments. These tests are designed to evaluate specific skills, abilities, knowledge, personality traits, or other attributes relevant to the job or organizational requirements. Employment Agencies - These are firms or organizations that assist employers in finding suitable candidates for job openings. They often have access to a pool of pre-screened candidates and can help with various aspects of the recruitment process. Employment Exchanges - Employment exchange is a government entity, where the details of the job seekers are deposited and given to the employers for filling the vacant positions. Equal Employment Opportunity Commission - It is an organization that is responsible for the enforcement of federal laws that prohibit organizations from discriminating against employees on the basis of multiple factors including race, color, nationality, religion, gender, etc. Essay Method - The essay method is a performance appraisal method in which the rater writes a brief narrative describing the employee's performance. This method tends to focus on extreme behavior in the employee's work rather than on routine day-to-day performance. Page 40 Definition of Terms Exit Interview - Exit interviews are conducted for those employees, who want to leave the organization. The significance of the exit interview is to ascertain the reasons behind leaving the job. Forced Distribution Method - The forced distribution method of performance appraisal requires the rater to assign individuals in a work group to a limited number of categories, similar to a normal frequency distribution. The purpose of forced distribution is to keep managers from being excessively lenient and having a disproportionate number of employees in the "superior". Formal Interview - A formal interview is organized in an informal manner, i.e., the candidate will be aware about the dates and timings of the interview well in advance and the interviewer plans and prepares the questions for the interview. Group Interview - In this type of interview, all the candidates or a group of candidates are interviewed together. Halo - A halo error occurs when a manager generalizes one positive performance feature or incident to all aspects of employee performance, resulting in a higher rating. Human Capital - Human capital refers to the economic value of a worker\'s experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality. HR Generalist - An HR generalist is an HR employee who typically reports to an HR manager or director. HR generalists handle daily core HR functions, such as recruitment, employee relations, compensation and compliance. Page 41 Definition of Terms Human Resource Planning - Human resource planning (HRP) is the continuous process of systematic planning to achieve optimum use of an organization\'s most valuable asset---quality employees. HR planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses. Human Resources Forecasting - HR forecasting is the process of predicting how a company's staffing needs change with time so that it can remain prepared to operate successfully. HR forecasting ensures a company will have the right number of employees on staff. Human Resources Management - Human resource management, or HRM, involves coordinating, managing, and allocating human capital, or employees, in ways that move an organization's goals forward. HRM focuses on investing in employees, ensuring their safety, and managing all aspects of staffing from hiring to compensation and development. In-basket Exercises - The in-basket exercise is designed to assess a candidate\'s adaptive thinking, problem-solving, judgement, administrative abilities, planning, organizing, delegating, and integrative skills while dealing with memos, e-mails, requests, messages, handwritten notes, and other items while under pressure. Individual Interview - In an individual interview, the interview takes place on a one to one basis. In this case, there will be a verbal and a visual interaction between two people, an interviewer and a candidate. Induction - It is the process of receiving and welcoming of the employees, after they have been selected and providing them the required training needed to settle down adequately. Page 42 Definition of Terms Informal Interview - Such interviews are conducted in an informal way, i.e., the interview will be stable without any written communication and can be arranged at any place. Internal Recruiting - Internal recruiting, also known as internal promotion or internal hiring, refers to the process of identifying and filling job vacancies within an organization from its existing workforce. Instead of hiring external candidates, internal recruiting involves considering current employees for open positions, whether they are within the same department or elsewhere in the organization. Interviews - Interviews involve one-on-one or group discussions between a job analyst (interviewer) and employees, supervisors, or subject matter experts. During the interview, the analyst asks structured or semi-structured questions to gather information about job duties, skills required, work conditions, and other aspects relevant to job roles. Intranet Job Postings - Involves posting job openings on the organization\'s internal network or intranet. It is used to inform current employees about job opportunities within the company, encouraging internal mobility and career advancement. Job Analysis - Job Analysis is a procedure through which you determine the duties of the positions and the characteristics of the people to hire them. Job Analyst - Job analysts work in the human resources (HR) department of a company or organization, conducting in-depth research about occupations and job descriptions. They focus on worker classification systems while studying the effects of industry and occupational trends upon worker relationships. Page 43 Definition of Terms Job Compensation and Salary - Refers to the monetary and non-monetary benefits offered to employees in exchange for their work. It includes base salary, bonuses, incentives, benefits (like healthcare and retirement plans), and other perks that contribute to the overall compensation package. Job Context - Job context refers to the broader environment or conditions in which a job is performed. It includes factors such as the physical work environment, organizational culture, relationships with coworkers and supervisors, tools and equipment used, and any other relevant contextual information. Job Description - A job description is a written statement that outlines the duties, responsibilities, tasks, and requirements of a particular job. It typically includes information such as job title, job summary, essential functions, qualifications, and reporting relationships. Job Enlargement - Job enlargement refers to expanding a job\'s scope by adding more tasks or responsibilities of a similar level of complexity. It aims to provide employees with a broader range of duties within their current role to enhance job satisfaction and skill development. Job Enrichment - Job enrichment involves redesigning jobs to incorporate higher levels of responsibility, autonomy, decision-making authority, and complexity. The goal of job enrichment is to enhance the intrinsic motivation and satisfaction of employees by providing opportunities for growth, challenge, and achievement within their current roles. Page 44 Definition of Terms Job Instruction Training - Job Instruction Training (JIT) is a structured training method suitable for jobs with clear and logical sequences of steps. It involves breaking down tasks into smaller components, teaching each step sequentially, and ensuring the trainee can perform each task correctly before moving on to the next. This method is effective for quickly teaching specific job skills and procedures. Job Posting - Job posting refers to the practice of publishing and displaying advertisements of an open job to the employees. Job Rotation - Job rotation involves moving employees through a variety of positions within an organization or department. Job Specification - Job specification refers to a statement that outlines the qualifications, skills, knowledge, abilities, and personal attributes required to perform a specific job effectively. It details the qualifications and characteristics that an ideal candidate should possess to succeed in the role. Job Vacancy - An open position within an organization or company that requires a qualified individual to fill it. Legal Hiring Practices - Legal hiring practices refer to the rules, regulations, and ethical standards that organizations must adhere to when recruiting and selecting employees. These practices are designed to ensure fairness, equality, and compliance with applicable laws throughout the hiring process. Leniency - Giving undeserved high ratings to an employee. Page 45 Definition of Terms Management Assessment Center - This is a structured evaluation method used to assess managerial potential or leadership qualities in individuals. It typically involves a series of simulations, exercises, and interviews designed to evaluate skills such as leadership, decision-making, communication, and problem-solving in a controlled setting. Miniature Job Training - This refers to a training approach where employees are provided with condensed or abbreviated versions of job tasks or responsibilities to learn and practice. It allows individuals to gain practical experience and skills relevant to their roles in a controlled and manageable setting before performing the tasks independently or in a real work environment. Outsourcing - Outsourcing in human resource management, or HRM, is the act of hiring an external firm to handle part or all of your human resource needs instead of relying on a dedicated internal HR department or employee. Onboarding - Onboarding is the process of moving a new hire from applicant to employee status, ensuring that paperwork is done and orientation is completed. Online Job Boards - Websites or platforms where employers can post job openings to reach a wide audience of potential candidates on the internet. Job seekers can search and apply for positions based on their skills and preferences. Panel Interview - Panel interview, as the name indicates, is being conducted by a group of people. In this type of interview, three to five members of the selection committee will be asking questions to the candidates on various concepts. Page 46 Definition of Terms Project Teams (Action Learning) - A temporary team, often consisting of people from different areas or functions, that works on real projects. Ranking Method - Ranking method is a performance appraisal method in which the rater ranks all employees from a group in order of overall performance. Rating Scales Method - The rating scales method is a performance appraisal method that rates employees according to defined factors. Rewards and Incentives - Rewards and incentives are mechanisms used by organizations to recognize, motivate, and reward employees for their contributions, efforts, achievements, and behaviors that align with organizational goals and values. Recruiter - An HR professional responsible for finding and hiring qualified candidates. Recruitment - Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and onboarding employees. In other words, it involves everything from the identification of a staffing need to filling it. Screening - Screening is the process of evaluating job applications, scanning resumes and selecting suitable candidates that match with the job description. Sensitivity Training (T-groups) - A psychological technique in which intensive group discussion and interaction are used to increase individual awareness of self and others; it is practiced in a variety of forms under such names as T-group, encounter group, human relations, and group-dynamics training. Page 47 Definition of Terms Skill Inventories - Skill inventories are structured databases or systems used by organizations to catalog and manage information about the skills, competencies, qualifications, and experiences of their employees. These inventories are valuable tools for human resources (HR) departments and organizational leaders to understand the capabilities of their workforce and make informed decisions related to talent management, workforce planning, training and development, and succession planning. Stereotyping - Occurs when managers allow individual differences to affect the ratings they give. These differences are gender, race, or age. Stress Interview - Stress interviews are conducted to ascertain how a candidate would react during the time of stress and cope up with problems. In this type of interview, the interviewer will come to know whether the candidate can deal in an effective manner with the demands and needs of a complicated job. Strictness - Being unduly critical of an employee's work performance. Structured Interview - In this type, the interview is planned, designed and detailed in advance. A structured interview is pre-planned, precise, and reliable in hiring the candidates. Talent Management Process - Talent Management Process is the the goal-oriented and integrated process of planning, recruiting, developing, managing and compensating employees Talent Specialist - Talent Specialist is an HR professional who sources and screens candidates that best fit the company\'s future goals. Their duties include establishing hiring criteria, understanding recruiting needs and finding the right candidates. Page 48 Definition of Terms Performance Appraisal - Performance appraisal, also known as performance evaluation or performance review, is a systematic process used by organizations to assess and evaluate the job performance of employees. It involves gathering and analyzing information about employees\' performance, accomplishments, strengths, weaknesses, and areas for improvement. Performance Appraisal System - A performance appraisal system (also known as a performance management system) is a structured process used by organizations to assess and evaluate employees\' job performance, contributions, and achievements within a specific period. Performance Management - Performance management refers to the continuous process of setting objectives, assessing progress, and providing feedback to employees to ensure that organizational goals are met effectively and efficiently. Promotion - Promotion refers to advancement of the employees by evaluating their job performance. It is the process of shifting an employee from a lower position to a higher position with more responsibilities, remuneration, facilities, and status. Salary - Salary refers to the fixed amount of money paid to an employee for performing a job role over a specific period, typically on a monthly or annual basis. Self- Appraisal - Self-appraisal is the process when an employee evaluates their performance. Employees are given a chance to examine their performance and determine their strengths and flaws during this process. Staffing - Staffing is the process of hiring eligible candidates in the organization or company for specific positions. Page 49 Definition of Terms Situational Judgment Test (SJT) - This is a type of psychological test used in the assessment of candidates or employees. It presents hypothetical scenarios relevant to the job and asks respondents to choose the most appropriate action or decision from a set of options. SJTs assess judgment, problem-solving abilities, and decision-making skills in specific contexts. Succession Planning - Succession planning is a proactive process of identifying and developing potential future leaders or key employees within an organization to fill key roles when they become vacant. The primary goal of succession planning is to ensure a smooth transition of leadership and critical positions to minimize disruptions and maintain organizational stability. Training - Training refers to the process of teaching specific skills and knowledge to employees to improve their performance in current roles. It typically involves structured programs, workshops, seminars, or on-the-job training aimed at developing technical, operational, or job-specific competencies. Training and Development - Training and development (T&D) refers to the process of equipping employees with the knowledge, skills, and competencies required to perform their job effectively and to contribute to organizational success. It is a critical function within Human Resources (HR) that focuses on enhancing employee performance, productivity, and engagement through structured learning experiences. Training Specialist - A Training Specialist, also known as a Training Coordinator or Training and Development Specialist, is a professional within the Human Resources (HR) function who specializes in planning, implementing, and evaluating training programs for employees. Page 50 Definition of Terms Transfer - Transfer refers to the process of interchanging from one job to another without any change in the designation and responsibilities. It can also be the shifting of the employees from one department to another department or from one location to another, depending upon the requirement of the position. Understudy - An understudy is an individual who is trained to take over the responsibilities of a specific position if the current job holder is unable to perform their duties (e.g., due to illness, vacation, or promotion). Unstructured Interview - This type of interview is an unexpected one, where the interview questionnaire is not prepared. The interviewers are not well prepared regarding the questions that are to be asked and in obtaining accurate answers. Upward Feedback - Upward feedback is a process where subordinates or employees provide anonymous feedback on their supervisor\'s performance. This feedback mechanism allows employees to share their perspectives on their supervisor\'s leadership, communication, management style, and other relevant aspects of their role. Vestibule Training - Vestibule training is a type of training that involves creating a simulated work environment for employees to practice job-related tasks and skills. Work Sampling Event - This refers to a method used in industrial and organizational psychology to assess how employees spend their time on various tasks. It involves taking random samples of work activities to gain insights into work patterns, efficiency, and productivity. Work Standards Method - The work standards method is a performance appraisal method that compares each employee's performance to a predetermined standard or expected level of output.