What are the different types of Performance Appraisal System?

Performance appraisal deals with how organizations evaluate and measures its employees achievements and behaviors. It is an employee review by his manager where his work performance is evaluated and strengths and weaknesses are identified so that the employee knows his improvement areas. Performance appraisal is the right time to set new goals and objectives for the employees.

Before we look into the types of Performance appraisal system, let us check out the purpose of it.

So what is the purpose of a performance appraisal system?

Performance appraisal system allows the management categorize employees into performers and non-performers. It is primarily done to estimate the employees’ worth.

Going back to the types, there are  different variations of performance appraisal systems. Let us list them down and see a bit of what they are:

  1. Behavioral  checklist: Behavioral checklist has a list of criteria that an employee should workup to be a diligent worker. The behaviors differ according to the type of job been assessed. This method is considered favorable as the evaluation is done on the basis of individual employee performance without comparisons.
  2. 360 degree appraisal: 360 degree appraisal involves feedback of the manager, supervisor, team members and any direct reports. In this method of appraisal, employees complete profile has to be collected and assessed. In addition to evaluating the employees work performance and technical skill set, an appraiser collects an in-depth feedback of the employee.
  3. Management by objective: This is an objective type of evaluation which falls under modern approach of performance appraisal. In MBO method of performance appraisal, manager and the employee agree upon specific and obtainable goals with a set deadline. With this method, the appraiser can define success and failure easily.
  4. Psychological appraisals: This appraisal method evaluates the employees intellect, emotional stability, analytical skills and other psychological traits. This method makes it easy for the manager in placing the employees in appropriate teams.

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