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Tips to Help Managers Improve Performance Appraisals

Dheeraj K Pandey

Dheeraj K Pandey

Dheeraj helps Business Owners and HR heads who are striving for a better return, wanting to keep their people happy and need more visibility. His expertise is in recommending HR technologies based on the business needs. Dheeraj is currently Chief Advisor for HR Systems and Processes, KEKA Technologies.
employee review-Performance Appraisals


Technology has revolutionized our access to information and, consequently, business practices. The HR industry has also seen significant effects of this on workplaces. The way workforces are structured and organized will have to undergo fundamental changes- creating numerous ripples in human capital management.


Enter Performance Software, a platform that enables HR departments and managers in businesses and organizations of any size to track daily progress on key operational metrics such as employee engagement (both internally and externally), customer service ratings, turnover rates, and safety records, among others. The product then employs algorithms based on artificial intelligence to compare data and evaluate individual performance. These performance management tools can also be used to evaluate team dynamics and organizational success.

More than anything, these enhance the way managers conduct performance appraisals and ensure they are successful to benefit both employees and employers.

What are these tools and how are they used?


Behaviorally anchored rating scale (BARS)

Instead of being anchored to a general trait, a Behaviorally Anchored Rating Scale (BARS) is anchored to specific behaviors. This type of rating scale is frequently used in employee evaluations to ensure that ratings are based on observable and measurable behaviors. Using a BARS can aid in ensuring that ratings are fair and accurate, and are based on actual behaviors as opposed to subjective opinions or impressions. BARS can also be used to identify specific employee behaviors that require improvement and to track their progress over time.


360-degree feedback system

A feedback process in which not only the reporting boss, but peers, direct reports, and sometimes even customers evaluate performance. This generates a combined analysis of the employee’s self-evaluation and others’ perceptions. Thereby making it beneficial for all parties involved, the employee, the team, and the organization. With regular feedback, employees get timely reviews and understand where they are going wrong to reverse accidents.

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Management by Objective (MBO)

MBO determines employee objectives based on the company’s top priorities. The processes are designed to identify an employee’s primary objectives, which are then evaluated based on group input. This enables all company contributors to see their accomplishments in relation to the company’s top priorities as they carry out their tasks, reinforcing the alignment between activity and outcome, thereby significantly boosting productivity. Although MBO is intended to help define and manage a set of objectives, the objectives themselves will vary from company to company. It enables businesses to express their uniqueness and top priorities, and most importantly, to execute on them.


Cost Accounting method

Essentially, it is an information system that informs management of the cost and value of the human factor within the organization, as well as any changes to the business’s human resources over time. The system may serve both internal and external users, providing management (internal users) with pertinent data on which to base recruiting, training, and other development decisions. Apart from this, it also provides investors, lenders, and other external users of financial statements with information regarding the organization’s investment in and use of human resources.


Psychological appraisal

These evaluations are more focused on predicting future performance than on evaluating past performance. It consists of in-depth interviews, psychological tests, discussions with supervisors, and a review of previous assessments. It focuses more on the emotional, intellectual, motivational, and other personal characteristics of the employee that affect his performance.


Assessment centre

In an assessment center, candidates are evaluated to determine their suitability for particular roles. This is typically accomplished through a series of interviews, group tasks, and written exercises. The objective is to give employers a more complete picture of a candidate’s skills and abilities. This helps in evaluating candidates holistically and identifying the most qualified employees. The data helps in understanding where an employee stands with their current performance and which workers can excel with training and development opportunities.

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The business world has changed drastically. Modern organizations are continually embracing new and innovative working and employee management practices. Performance management software enables managers and HR professionals to continuously monitor, develop, and coach employee performance. The software is equipped with robust features, such as employee development and leadership planning. This enables leaders to consciously monitor employee performances, motivate their employees, and engage them, thereby minimizing turnover and maximizing business outcomes.


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