6 Types of Performance Appraisal Methods Example
 Without managing performance of your employees, there cannot be a proper analytical strategy for your company. From the famed Hawthorne studies done to assess the performance of employees to the current practices developed by consultancy agencies to measure the metrics; performance management is a part of every corporate and even state hierarchy. Measuring the performance involves the appraisal method which is an active part of organizations and companies. Let us talk about the six types of employee performance appraisal methods for you to try them in your own company.
 1.    MBO
Management by objectives is a widely used performance appraisal method which is applied in almost any organizational setting due to its simplicity and effectiveness in collecting the accurate results to boost productivity levels. This is where both manager and employees sit down to identify, plan, organize, and communicate their goals for a certain period of time. Once done, they keep checking on these goals to ensure they are on the track and are efficient in their goal-setting.
 2.    360-Degree Feedback
A dual-dimensional method which evaluates an employee by the reviews from the employee’s own influence circle. This can be peers, customers, reports, and in-line managers. Having a mixed response channel, this method can remove any favoritism which the MBO might include and would make it clear of the weaknesses of an employee for an efficient planning to polish those skills.
 3.    Assessment Center
A concept which was introduced by the German Army in the 1930s, this has been curated to fit the modern models of business environment. This method is the evaluation of an employee based on what the societal factors (their co-workers at all levels). The employee is given a display of how their others observations on their actions can result in a performance impact. This is a great method to go for because of the future job analysis involved during the forecasting.
 4.    Bars
Behaviorally anchored rating scales hold both quantitative and qualitative benefits. This process compares the employee performance levels with some behavioral and numerical instances. The performer is anchored on the BARS where the behavior of an employee plays an active role on the side. Critical incidents detect this sort of behavior and it is a complete process where these critical incidents are edited as well into a format to remove any redundant approaches which may have seeped in during the process. The critical incidents prognostic is then used to create the BARS and evaluate the employee performance.
 5.    Psychological Methods
As BARS uses behavior, psychological methods are also determined as a source of measurement for such appraisals. This method includes the future performances of an employee and not the past efficiency. Interpersonal skills, cognition, intellect, leadership, personality traits, and emotional quotient are used to assess the psychological input from the employees. Based on the results, an analysis is designed to plan and review the appraisal system.
 6.    HRM Accounting
The human resource accounting process is the analysis done through the monetary benefits which an employee yields from the company. These insights are gathered by the employee retention costs and the returns a company has provided to an employee for their input. Service value, quality, overhead cost, interpersonal relationships are some of the variables which are considered during this accounting. This is a debated method as the cost and benefit analysis can prove to be inaccurate at times when miscellaneous expenditures are assessed.
So, these are the 6 performance appraisal methods examples which you can implement in your organization. Either you can go for a mix or keep just one of the methods as your core process, implementing them in your company will provide you valuable insights of your company culture and offer a  detailed structure of your employees and their expectations from the company.
Interested in knowing more about performance management essentials and systems which can put your company on an organized journey of corporate success? Since 2005, eLeap has been an award winner in providing organizations and companies the best Learning Management Systems (LMS), Performance Management Systems (PMS) to streamline the processes and make the overall operations successful and effective. To know more about the performance management software and how it can help your organization, visit our website and find the right performance management software and other systems for your organization. Visit us now at
 https://performance.eleapsoftware.com/performance-review-software/