Performance appraisal is the technique to evaluate and measure employees’ contributions to the organization, the employee's achievements, skills and growth. Employee performance is documented and evaluated with its own performance standards.

Methods of appraisal have been classified differently by different authors. Widely used appraisal methods can be classified into two categories: traditional methods and modern methods. Traditional methods are based on the perspective or opinion of the raters. It’s emphasis is on the rating of the individual’s personality traits. Modern methods focus on the evaluation of work results, job achievements, and are more objective.

Common performance evaluation methods widely used in today’s organization:

  1. Rating scale
  2. Critical incidents 
  3. Management by objectives (MBO) 
  4. 360 degree feedback  

Which method is your organization using?