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Performance Management and Appraisal: Techniques for Evaluating Employee Performance

August 2024
By Arkgroup Leadership & Learning Team

Performance Management and Appraisal: Techniques for Evaluating Employee Performance

Performance management is an important aspects of company success, with a direct influence on employee productivity, development, and overall business performance.

Performance management is a continuous communication process between managers and workers that happens over the year to support the achievement of strategic goals. This process includes setting expectations, providing feedback, reviewing performance and rewarding performance & developing performance capacity.

Strategies to Review Employee Performance

To ensure accuracy, impartiality, and relevance, a successful performance review must follow a systematic strategy.

Here are a few commonly used evaluation techniques:

1. 360 Degree Evaluations (360)

360-Degree Evaluation entails gathering performance feedback from a worker’s superiors, colleagues, subordinates, and occasionally clients. This holistic method delivers a balanced picture of an employee’s performance and conduct.

Benefits:

  • Gain comprehensive information into staff performance.
  • Determines strengths and areas for improvement.
  • Promotes a culture of open feedback.


Challenges:

  • Laborious and complicated to manage.
  • Certain evaluators may provide prejudiced comments.


2. Management By Objectives (MBO)

Management by Objectives is a performance evaluation system in which staff members and leaders collaborate to define precise, quantifiable goals. Progression towards these goals is assessed on a regular basis, and the final assessment centered on meeting these objectives.

Benefits:

  • Specific and measurable objectives.
  • Conforms individual aims with company objectives.
  • Promotes staff engagement in setting targets.


Challenges:

  • Restricted focus on solely accomplishing goals.
  • Needs good goal-setting abilities and frequent evaluations.


3. Behavioral Observation Scale (BOS)

Behavioral Observation Scales evaluate employee performance using particular, noticeable actions connected to work performance. This strategy emphasizes the regularity and quality of certain actions.

Benefits:

  • Impartial and unambiguous standards.
  • Concentrates on particular habits that influence performance.
  • Helpful for development reasons.


Challenges:

  • Involves extensive observation and documentation.
  • Possible that not all aspects of work performance can be captured.

To provide a more holistic measurement of performance, a combination of these techniques should be deployed. To customise a performance management review technique that is most relevant to your organisation, you can contact us.

Setting Objectives That Drive Performance

Setting objectives/goals is an important part of performance management since it gives employees direction and incentive. SMART goals are specific, measurable, attainable, relevant, and time-bound.

1. S.M.A.R.T Goals

SMART Goals promote clarity and attainableness, improving the chance of successful outcomes. Each objective should satisfy the following requirements:

  • Specific: Clearly explain the goal.
  • Measurable: Set parameters for monitoring development.
  • Achievable: Make sure the aim is feasible.
  • Relevant: Relate the aim with the overall company objectives.
  • Time-bound: Establish a time limit for completing the goal.


For instance:
“Boost customer satisfaction scores by 15 percent within the course of 3 months through reducing responding times and establishing a customer feedback mechanism.”

2. Aligning Personal and Company Objectives

Aligning personal goals with corporate objectives ensures that workers’ efforts support the company’s strategic priorities. This connection promotes a feeling of purpose while improving performance as a whole.

Key Practices:

  • Convey organizational goals explicitly.
  • Engage staff in the establishing targets in the process.
  • Review goals on a regular basis and make any necessary adjustments.


3. Stretch Goals

Stretch goals are tough targets that push employees beyond their familiar limits. While lofty, these objectives should be doable with dedication and creativity.

Benefits:

  • Promotes innovation and growth.
  • Improves staff engagement and motivation.
  • Promotes strong performance.


Challenges:

  • Danger of creating unreasonable expectations.
  • Risk for higher burnout and stress.

Effective Performance Feedback

Feedback is an essential component of performance management, guiding employees to grow and develop. It is always easier to provide positive feedback than constructive feedback. However, it is the ability to process the constructive feedback effectively that make us a better person.

Therefore, how the constructive feedback is given is important. These are some common feedback models:

1. SBI Model (Situation, Behaviour, and Impact)

This is a framework for giving clear and detailed feedback. It entails explaining the situation in which the behaviour happened, the exact conduct seen, and the consequences of that behaviour.

Example:

  • Situation: “In last week’s team meet-up…”.
  • Behaviour: “…You interfered many times.”
  • Impact: “…which affected the course of the dialogue and made it difficult for other people to participate.”


2. The Sandwich Approach

The Sandwich Approach entails providing feedback while sandwiching constructive criticism between pleasant comments. This strategy reduces defensiveness and promotes a more pleasant acceptance of feedback.

Example:

  • Positive: “You did an excellent job on the last assignment.”
  • Constructive: “Nevertheless, I’ve noticed that deadlines were occasionally overlooked, which affected the team’s productivity.”
  • Positive: “Ultimately, your commitment and standard of work are remarkable.”


3. S.T.A.R Model (Situation, Task, Action, Result/Response)

This approach facilitates a 2-way conversation with the employees receiving the feedback. It is an extension of the SBI approach which allows the employees to consider ways to do things differently moving forward.

Key Practices:

  • Situation: “In the last week meeting…”
  • Task: “When we were asking for feedback on the project…”
  • Action: “… you were speaking loudly on your phone…”
  • Result & Response: “as a result it disrupted the discussion…what are your thoughts about the incident…”

Regardless of the model or approach you use, the common keys to providing feedback is to provide the feedback in a timely manner, be detailed, practical, and presented in a way that stimulates the individuals to action.

Adopting Performance Improvement Plans (PIP)

Performance Improvement Plans (PIPs) are official papers that detail the exact activities an employee must take to enhance performance. PIPs are often utilized when an employee’s performance is below expectations and rapid improvement is required. This often happen after the performance review is graded. It provides a second chance for the employee to demonstrate the competencies required for the role.

1. Elements of PIP

An organized PIP consists of the following components:

  • Performance concerns: Fully identify the precise performance concerns that must be rectified.
  • Goals and Expectations: Set the employee’s performance criteria and goals.
  • Action Plan: Outline the measures the employee intends to take to enhance performance, particularly any training or support offered.
  • Timeline: Determine a definite timetable for attaining the objectives.
  • Monitoring and Review: Schedule frequent check-ins and meetings for feedback to monitor progress.


2. Tracking Performance and Offering Support

This process is generally based on a period of three to six months. Frequent follow-up and assistance are critical to the success of a PIP. Managers should give constant feedback, recognize accomplishments, and handle any issues that occur.

Key Practices:

  • Planned check-ins: Hold frequent meetings to assess progress and give comments.
  • Modify as necessary: Be adaptable and tweak the strategy as needed to accommodate unexpected obstacles or circumstances.
  • Inspiration and Recognition of Work: To stimulate employees, recognize and celebrate their advances and successes.

Case Studies: Effective Performance Management and Appraisal Processes

Case Study 1: General Electric (GE)

General Electric (GE) is noted for its strong performance management system, which has evolved throughout time to prioritize continual feedback and progress.

Key Practices:

  • Performance Progression: GE modified its usual yearly assessment system with a continuous performance development strategy.
  • Employees and management have regular check-ins to review progress, goals, and growth requirements.
  • Mobile App: GE employs a mobile application to provide instant feedback and goal monitoring.


Case Study 2: Adobe

Adobe altered their performance management by replacing yearly performance assessments with a more flexible and ongoing feedback approach.

Key Practices:

  • Check-In Dialogue: Adobe superseded formal evaluations with regular check-ins to discuss goals, feedback, and growth.
  • Employee Empowerment: Workers are motivated to take responsibility for their own growth and to constantly seek feedback.
  • Goals are matched with corporate objectives to ensure that individual efforts help to achieve overall company accomplishment.


Performance management and assessment are critical for improving employee performance, growth, and company achievement. Organizations may develop a culture of ongoing enhancement and high performance by using effective performance evaluation methodologies, offering constructive feedback, defining SMART objectives, and executing performance improvement strategies.

Regular monitoring and assistance, along with a focus on development and alignment with corporate goals, assure that performance management systems oversee current performance difficulties while also contributing to permanent employee growth and engagement. Companies may use these methods to develop a driven, productive, and excellent workforce.

How we can help you

In ARK Leadership & Learning, we work with you to develop customised solutions to meet your short-term and long-term requirements. We run public programs that are relevant to individuals, managers, and businesses from time to time. These programs can be facilitated inhouse when you have a minimum number of participants.

ARK Leadership & Learning is an accredited training organisation (ATO) and we have a team of certified Management Consultants that will partner you to tap on the Enterprise Development Grant (EDG) by Enterprise Singapore for projects such as Service Excellence, Human Capital Development, Strategic Brand & Marketing Development, Financial Management, Sustainability, etc. which are beneficial to your organisations.

You may consider the leadership programs here or contact us to customise a relevant leadership program for your organization.

You can also reach us at the address and contact below:

ARK Leadership & Learning
111, North Bridge Road #23-04 Peninsula Plaza, Singapore 179098

Tel: +65 6604 6330
Fax: +65 6604 6334
Email: llearning@arkgroup.com.sg

Get In Touch with Us

ARK LEADERSHIP & LEARNING

A fully-owned subsidiary of Medinex Limited

111, North Bridge Road #23-04 Peninsula Plaza, Singapore 179098
Tel: +65 6604 6330
Fax: +65 6604 6334
Email: llearning@arkgroup.com.sg

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