Types of Employee Appraisal (DP IB Business Management): Revision Note

An introduction to employee appraisals

• Staff appraisal is a process where a manager or supervisor assesses an employee's job performance

Discussion points in employee appraisals

• Performance is measured against the tasks and responsibilities stated in the employee's job description

• Constructive feedback is given and there is a discussion of goals and development opportunities

Advantages and disadvantages of employee appraisals

Formative appraisal

• A formative appraisal involves gathering ongoing information and feedback on employee performance

  • Managers and workers have regular performance management conversations

  • Prompt adjustments can be made to improve performance

  • Methods used to gather information for formative appraisal may include

    • employee observations

    • aptitude tests

    • skills tests

    • feedback from peers

  • Formative appraisal is commonly used during training or probation periods

Characteristics of formative appraisal

Summative appraisal

• Summative appraisal is typically conducted yearly or at the end of a work assignment

• Its main purpose is to assess and measure the overall performance, achievement or outcomes of employees

• Summative appraisals are often used to make decisions related to pay or promotion

Characteristics of summative appraisal

360 degree feedback

• 360 Degree feedback provides employees with feedback from within and outside their organisation

  • Feedback comes from multiple stakeholders who have direct contact with the employee

  • Stakeholders may include line managers, colleagues, suppliers and customers

The 360 degree appraisal process

• Feedback can be gathered from a range of internal and external sources

  • Feedback is typically gathered through surveys or questionnaires

  • Responses are usually anonymised to encourage honest feedback

  • After feedback is collected, it is shared with the employee in the appraisal process

• It is considered to provide a comprehensive assessment of an individual's strengths, weaknesses and training/development needs

• It can be a valuable tool when used effectively

  • It should be implemented carefully to ensure that it serves its intended purpose and does not lead to conflicts or resentment

  • It is essential to have a clear process for collecting, analysing and providing feedback and to use the information obtained for employee development

Uses of 360 degree feedback

1. Performance appraisal

   • Used to evaluate an employee's performance and overall contributions to the organisation

   • Helps identify areas where improvement is needed and supports employees in developing their skills

2. Personal development

   • Focuses on helping employees improve their individual capabilities and grow professionally

   • Encourages continuous learning and skill enhancement aligned with both personal goals and organisational needs

3. Career development

   • Assists individuals in planning and advancing their careers within the organisation

   • Supports employees in setting long-term career goals and identifying the steps needed to achieve them

4. Leadership and management development

   • Involves assessing and developing the leadership and managerial skills of current or potential leaders

   • Prepares individuals for future management roles and enhances organisational effectiveness through strong leadership

Self-appraisal

• Self-appraisal involves employees evaluating their own performance, skills, strengths, weaknesses and achievements

• It is commonly used in the workplace as part of the performance management process

• Self-appraisal is typically used alongside evaluations from managers or supervisors to provide a comprehensive view of an individual's performance

Elements of self-appraisal

 The value of employee self-appraisal

• The process can lead to increased self-awareness

• The process provides an opportunity for employees to share their perspectives and goals with their supervisors, which can promote open dialogue

• The process identifies areas that need improvement and by setting clear goals for the future, it supports professional growth and development

• The process can balance out the evaluation process as it allows employees to express their viewpoints and provide context/balance