Ways to evaluate individual

Performance
Performance Evaluation Methods

 A comprehensive employee appraisal is often made up of several

different methods of performance evaluation.
 While managers and organization can use just one evaluation
process when judging an employee's performance, they often use
multiple evaluation methods
 This combination provides a broader picture of the areas where an
employee needs improvement and how employee development can
be improved.
Performance Evaluation Methods

 Management by Objectives (MBO)

 360 Degree Feedback

 Self Assesment

 Critical Incident Method

Management by Objectives
 Management by objectives (MBO) is a systematic and organized approach based
on the setting of clear and measurable objectives and achievable goals by
management, and using those objectives to evaluate and review performance

 MBO helps to plan for and create effectively performing employees

 The basic principle behind MBO is to ensure that both managers and employees
have a clear understanding of the aims and objectives of the organization as well
as their own role in fulfilling them
MBO-How it works
 All employees in an organisation are given a set of goals they have
to reach within a predetermined period.
 These objectives are mutually set and agreed upon between
managers and employees.
 Performance reviews are conducted periodically to evaluate whether
employees are achieving these objectives and to what extent.
Feedback is provided to employees at scheduled interval meetings.
 If these goals have been reached, employees are rewarded according
to results.
Management by Objectives

 To achieve clarity and understanding of goals, S.M.A.R.T

goals are often used, which means goals that are:
Specific
Measurable
Achievable
Relevant
Time-bound
360 Degree Feedback
 360 degree feedback is a method and a tool that provides each
employee the opportunity to receive performance feedback from
his/ her supervisor and some of their peers
 In 360 degree feedback, typically between 8 and 10 people
complete questionnaires or give structured feedback describing the
performance of the individual under review
 The reviewers represent different types of work relationships with
the individual: they could be peers, direct reports, more senior
colleagues, or customers
360 Degree Feedback
 360 degree feedback allows each individual to understand
how his effectiveness as an employee, coworker, or staff
member is viewed by others

 The most effective 360 degree feedback processes provide

feedback that is based on behaviours that other employees
can see.
360 Degree Feedback

 The purpose of the 360 degree feedback is:

to assist each individual to understand his or her

strengths and weaknesses

to contribute insights into aspects of his or her work

needing professional development
Self-Assessment
 Employee self-assessments are often included in the
performance management process as they give employees
an active role to play.
 Rather than simply being the "recipient" of feedback from
their manager, employees are given a voice, and can
inform or shape their performance appraisal and ratings
 This active participation helps them to be more engaged
with both their performance and the review process
overall.
Self Assessment
 An employee self-assessment evaluation provides:

Opportunities for employees to take control of their career

by giving feedback on the current situation

Opportunities for employees to inform management

regarding the need for training or necessary resources to
make future success possible.
Critical Incident Method
 It involves identifying and describing specific events (or
incidents) where the employee did something really well
or something that needs improvement

 It's a technique based on the description of the event, and

does not rely on the assignment of ratings or rankings,
although it is occasionally coupled with a ratings type
system
Critical Incident Method
 Managers document incidents as they occur and the
incidents may be positive or negative in term of the
employee’s performance
 The documented critical incidents are used to identify an
employee’s strengths or weaknesses
 Some managers encourage employees to record their own
critical incidents
 This places more responsibility with the employee, and
also does not require the manager to have been present
when the incident occurred