Performance evaluation methods :

Annual performance reviews are a key component of employee development. The employee performance evaluation helps employees accomplish both personal development and organizational goals. the objective of the annual review is to provide all employees and their managers an opportunity to:

  • Discuss preset goal achievements, expectations and accomplishments.
  • Set goals for professional development
  • Retention, Termination, Promotion , Training Needs


A comprehensive employee appraisal is often made up of several different methods of performance evaluation. You can choose one evaluation process when evaluating an employee’s performance, but using multiple evaluation methods makes the evaluation more accurate and more successful.

 All methods of appraisals can be divided into two different categories.

  • Past Oriented Methods ( Rating scale ,Checklist , Forced Choice Method, Forced Distribution Method , etc ..)
  • Future Oriented Methods which are listed and detailed below:

Future Oriented Methods

  • Self-Evaluation

    The employee is asked to evaluate his own performance and goal achievements . One of the benefits of a self-evaluation is to remind the manager of employee significant accomplishments from the past year. and it could be an important step in a self-directed career planning process. in addition, self assesment can opens up conversation between the manager and the employee that can be beneficial to employee development.

  • 360-Degree Appraisal

    A 360-degree appraisal works by gathering feedback from multiple parties such as managers, coworkers, customers and even vendors. The more information you collect, the more accurate the performance review becomes. Although this way of evaluation is time-consuming when compared to other techniques, but employees are evaluated on their effectiveness within their own department based on their job descriptions, and they are also evaluated based on how effectively they work with the rest of the company ,which leads to more accurate reviews.

  • Management By Objectives

    The performance is rated against the achievement of objectives stated by the management. MBO process goes as under.

    • Establish goals and desired outcomes for each subordinate
    • Setting performance standards
    • Comparison of actual goals with goals achieved  by the employee
    • Establish new goals and new strategies for goals not achieved in previous year.
  • Psychological Appraisals:

    It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation.

  • Assessment Centers:

    A way of evaluating managers by gathering them in an assessment center to have some job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. The points assessed in assessment center are: assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc.