The use of employee performance rating is without doubt the hottest topic of debate in performance management circles at the moment. Should you use an overall performance rating as part of your employee reviews or appraisals? Show
In many ways it seems an obvious thing to do — most companies want an easy way of understanding who their good and bad performers are. Indeed, the 2014 E‑Reward performance management survey found that 77% of organisations used employee performance ratings. But there is now an increasing backlash against rating performance, and some high profile companies such as Adobe, GE and Microsoft have abandoned them. The Problem with Employee Performance RatingsSome studies have found that performance ratings actually demotivate employees and negatively impact performance, except for those people rated at the highest end of the scale. Furthermore, research into neuroscience has found that performance ratings activate a flight or fight response in the brain and decreases subsequent performance. Researchers have also found that employee performance improves through good quality feedback and that assigning a performance rating tends to prevent that feedback from being taken on board. The rating is what the employees remember after the event, and not the discussions that went with it. A final problem with performance ratings is that they are largely subjective and prone to a number of proven rating biases such as the”contrast effect”, “halo and horns effect”,”similar-to-me effect” and”central tendency bias”. Why Performance Rating Can Be UsefulDespite these problems, many organisations are still using employee performance ratings. The main arguments for rating performance are:
Should You Rate Employee Performance?This is the key question, and there is no right answer as it will depend on what your ultimate goals are for your performance management process. Our advice would be to question whether you really need performance ratings and, if you are using them, evaluate their effectiveness in achieving your performance management goals. Do some internal research to find out from your employees and managers whether they find that ratings actually improve performance and motivation or negatively impact it. How Employee Performance Ratings Can Be ImprovedIf you decide that you should rate employee performance, here are some things that you can do to minimise the potential negative impact of ratings and improve their accuracy:
Your Performance Management Software Should Support Your Chosen ApproachSome performance management systems are completely centred around an overall performance rating. With Clear Review, we don’t tie you into rating employee performance — you can choose to focus on qualitative feedback and performance development instead. If you want to have ratings, our performance management software also gives you the option of rating individual elements of performance, having an overall rating, or asking targeted questions — the choice is yours. What are the 4 purposes of performance appraisals?Increased job satisfaction, motivation and self-worth. Improved group performance. Opportunity to clarify expectations of individuals and teams, re-assess work goals and discuss what has worked well and what needs improvement. Improved quality of relationships with subordinates.
What are 3 types of performance appraisal?Types of Performance Appraisals. Self-assessment: Individuals rate their job performance and behavior.. Peer assessment: An individual's work group or co-workers rate their performance.. 360-degree feedback assessment: Includes input from an individual, supervisor, and peers.. Which of the following is the most common source of performance appraisal?Ratings scale
A ratings scale is a common method of appraisal. It uses a set of pre-determined criteria that a manager uses to evaluate an employee against.
What are the 5 performance appraisal methods?5 Modern Methods of Performance Appraisal. Management by Objectives (MBO). 360 Degree Feedback Method.. Assessment Center Method.. Human Resource Accounting Method.. Behaviorally Anchored Rating Scale (BARS) Method.. |