Every year, employees eagerly look forward to performance assessment as it helps them gain feedback from their management.
It’s also a crucial time for heads of organisations to recognise and reward the employees who are working hard to fulfil the company’s goals. That way, everyone is aligned to achieve the goals in a timely and effective manner.
Let’s evaluate the performance assessment process in detail:
4 Key Components in the Performance Management Procedure
Performance Rating Scale A performance rating scale is the most powerful tool in the assessment process as it facilitates measurement of each employee’s performance. Also, it’s the simplest way to rate their performance and achievements to reward or motivate them well.
Here are two most known ways to define the performance rating scale:
The MBO (Managing Business Objectives) Method MBO measures company performance based on predefined business objectives or standards agreed upon by both supervisors and employees in advance. However, this method mostly focuses on company goals and doesn’t always cover all aspects of organisational and personal success.
The 5-point Rating Scale The 5-point rating scale for performance is one of the most widely used rating scales. Every employee is rated on a scale of 5. Typically, 1 denotes poor performance, 2 denotes that the performance is below expectations, 3 rating would mean met expectations, 4 is exceeds expectations and 5 denotes excellent performance.
Though this mechanism has its downsides, it is still one of the most effective and quantitative ways to assess performance. It is easily measurable and provides a well understood classification and so, such a representation has gained popularity.
Performance Discussion The primary purpose of performance discussion is for supervisors to give employees relevant feedback and recognise their recent achievements. Through these discussions, employees connect with management to showcase their methods and achievements and receive constructive feedback from their supervisors.
Appraisal Cycle Time A very lengthy appraisal cycle can reduce performance management quality dramatically. So, it’s necessary to keep it concise, sharp and get everything done efficiently. With a good tool in place, you’ll be able to get your appraisals done smoothly and within reasonable deadlines.
Reduce Bias and Recency Effect Bias is one of the most significant reasons for employee dissatisfaction during performance management. So, using a tool that captures periodic and regular achievements and ratings will help reduce bias and overcome the much-prevalent recency effect while supervisors appraise their team members. It’s also an excellent measure to reduce employee attrition as employees believe that a merit-based assessment model has been institutionalised, feel appreciated and valued with this system.
How to Create an Effective Performance Rating Scale?
- The scale should help you understand and make interventions at an employee level
- The data collected using the scale should provide real-time, periodic, and easy to use reports Final Thoughts An efficient performance rating mechanism can form the core of a successful performance assessment procedure. By keeping the aspects of performance management in mind, supervisors can ensure employee motivation and a culture of meritocracy leading to high employee performance and satisfaction.
Visit Winzard’s official website for further assistance with result-oriented and efficient performance management!