What Are The Different Types Of Performance Appraisal Methods?

What Are The Different Types Of Performance Appraisal Methods?

|Apr 14, 2021

If you don't know the performance appraisal methods, it will be hard to conduct evaluations. It is a crucial process for the organization. It plays a significant role in enhancing the productivity of the employees. It is an annual process where the organization evaluates the productivity and the employees recognition performance based on a specific set of emergencies.

To be precise, it will help you to take care of performance management. Therefore, you have to make sure that you are properly using the performance appraisal. Or else it may establish a negative impact on your work culture. Consequently, we are about to discuss the performance evaluation methods.

Following those performance evaluation methods will ensure that you are performing the performance appraisal accurately.

So, here are the types of performance appraisal that you can check:

Management by Objectives (MBO)


It is one of the prevalent performance appraisal methods. Here, the managers and the employees have to work together. The managers will be communicating with employees. To be specific, they have to identify, organize, plan, and communicate objectives. It will help them to focus during the appraisal period. Once you are done with employee goal setting, your subordinates and managers will discuss the progress of achieving those objectives.

There is a specific purpose of MBO. Companies use it to balance the organizational goals as well as employee's goals. It will also help you to validate the objectives. To be specific, you will acknowledge that the objectives are measurable, specific, realistic, achievable, and time-sensitive. 

Finally, when the review is over, the administration will judge the employees after looking at the results. Employees with good performance will get promotions as well as salary hikes. Besides, they will deal with the failure with further training or transfer. Well, this process involves tangible as well as non-tangible aspects.

Assessment Centre Method


Another performance appraisal method that you can follow is the assessment center method. This method started in 1930. It is the brainchild of the German Army. However, the experts developed and polished it so that it is relevant to modern-day and positive work culture. This method will allow the employees to find out what everyone thinks about them. Besides, they will also perceive how their performance is affecting others.  

Well, it is quite an interesting method. It will help you evaluate the current performance, but you can assess the future performances as well. When the organization conducts the assessment, they take part in various things. For example, they will organize fact-finding exercises, informal discussions, in-basket exercises, role-play, and decision-making problems.

However, there is a huge drawback to this problem. It consumes a lot of time as well as money. Sometimes, you may find it hard to manage this method. But, if you can do it, you will come across a lot of benefits.

360 Degree feedback

It is a unique employment performance appraisal method. It involves a lot of things. It is a multi-dimensional method that comprises five parts. Here, the organization will take feedback from peers, managers, customers, and direct reports. Therefore, this method will eliminate bias on performance reviews. Also, the employee feedback will help the authority to comprehend the competence of the individuals.


Now, let us take a look at the five integral parts of this performance appraisal method:

  • Self-appraisals - Here, the employees will get a chance to introspect and improve remote work performance. It will help them to comprehend their strengths as well as weaknesses. However, you have to make sure that employees are doing it in a structured way. Or else, it can be biased, lenient, and indecisive.  
  • Peer reviews - If you omit the organizational structure hierarchy, the employees are the best evaluators. With the help of this review, you can determine the employees' capability to take the initiatives and work with the team. If they can do that, you have to consider them to be significant contributors. 
  • Managerial reviews - Managers are responsible for this review. It is the fundamental and traditional way to get an appraisal. Also, it comprises the individual rating of the employees. The supervisors will award the ratings. If a senior manager conducts the rating, the supervisor will award the rating to him or her.
  • Client or customer reviews - Both internal as well as external customers can do this review. The internal client can include the users who are working under this organization. The external client. External customers are not part of the company, but they use your services and products. So, customer reviews will also provide your employees with significant insights.
  • Subordinates are appraising managers- It is a powerful as well as delicate method. Most of the time, managerial points of view are the most unique. However, if there is reluctance or retribution fear, it can hamper the appraisal results.

Psychological appraisals

If you want to witness the hidden potential of your employees, psychological appraisals are the ideal performance appraisal methods. The purpose of this method is to analyze the future of the employees. It has nothing to do with the past. There are seven major components such as:

  • cognitive abilities
  • Interpersonal skills
  • leadership skills
  • Intellectual traits
  • Emotional quotient
  • Personality traits
  • Leadership skills

Here, the organization hires qualified psychologists. They conduct various tests to assess the psychology of the employees. However, this process is a bit slow and complex. Besides, when it comes to the results, it depends on the efficiency of the psychologists. 


While following this employment performance appraisal method, psychologists take various scenarios into account. For example, if your employees are dealing with an aggressive customer, the psychologist will comprehend his/her emotional response, persuasion skills, and behavioral response.

So, these are some of the performance appraisal methods that you should take into account. Following these methods will provide you with the best results. Also, to improve the performance level of your employees, you need to take care of the office furniture. Make sure that the office ergonomic chair or office standing desk that your employees are using is good enough. You can opt for bulk office furniture order too.

SmartDesk Offer May 2024

Spread the word