[MUSIC] Hello everyone and welcome to session four of this online course, where we will be discussing some of the most well known Performance Evaluation Tools. And how they can be used when conducting a performance appraisal. This session is designed to give you the tools which will help you understand some of the ways that individual performance can be evaluated. A comprehensive employee appraisal is often made up of several methods of performance evaluation. While managers and organizations can choose to use just one evaluation process when judging an employees performance, they often use multiple evaluation methods. Since this combination can provide a broader picture of the area where an employee needs improvement. And how employee development can be improved. Some of the most common methods of performance evaluation are first, Management by Objectives. Management by Objectives, MBO, is systematic and organized approach which is based on the setting of clear and measurable objectives and achievable goals by management. And subsequently, using those objectives to evaluate and review performance. MBO, helps to plan for and create effectively performing employees. Therefore, management by objectives can be defined as a process where the employees and the managers come together to identify common goals to be achieved, as well as the criteria for the measurement of their performance. The basic principles behind MBO is to make sure that both managers and employees have a clear understanding of the aims and objectives of the organization. As well as their own role in fulfilling them. So, how does it work? All employees in an organization are given a set of goals, they have to reach within the predetermined period. This objectives are mutually set and agreed upon between managers and employees. Afterwards, performance reviews are conducted periodically to evaluate whether employees are achieving these objectives, and to what extent. Feedback is provided to employees at scheduled interval meetings. If these goals have been reached, employees are rewarded according to results. To achieve clarity and understanding of goals, smart goals are often used. Which means goals that are specific, measurable, achievable, relevant and time bound. Secondly, 360 Degree Feedback. 360 degree feedback is a method and a tool that provides each employee the opportunity to receive performance feedback from his or her supervisor and some of their peers. In 360 degree feedback, typically between eight and ten people complete questionnaires, all give structured feedback. Describing the performance of the individual under review. The reviewers represent different types of work relationships with the individual. For example, they could be peers, direct reports, more senior colleagues or even customers hence, the term 360 degree feedback. 360 degree feedback allows each individual to understand how his effectiveness as an employee, coworker or staff member is viewed by others. The most effective 360 degree feedback processes provide feedback that is based on behaviors that other employees can see. The purpose of the 360 Degree Feedback is to assist each individual to understand his or her strengths and weaknesses. And to contribute insights into aspects of his or her work needing professional development. The rational for gathering 360 Degree Feedback, is that in complex organizations, managers will not fully understand the contribution of the people they manage, As they may be part of many different teams and engage in autonomous or semi-autonomous relationships with customers or colleagues. There is therefore, a strong argument for obtaining wide ranging information to form an accurate picture of performance. Thirdly, Self-Assessment. In the past, performance reviews were a one way dialogue, where managers told employees how they viewed their performance. Today, many employees work quite independently and are empowered to make decisions about how they work. As a result, the manager is not in-touch with the day to day activities and needs to rely on the employees input. Therefore, employee self assessments are often included in the performance management process as they give employees an active role to play. Rather than simply being the recipient of feedback from their manager, employees are given a voice, and can inform or shape their performance appraisal and ratings. This active participation helps them to be more engaged with both their performance and their review process overall. A self-assessment evaluation can help managers to obtain better insights into the employee's performance, as well as their perceptions about their performance. It is worth bearing in mind, that the way employee perceives his or her job performance may be quite a bit different from the evaluations that are being done by his or her supervisor. This is often the often the product of the factors. Such as unrealistic expectations and need for additional training, communication problems or simply a manager's detachment from the day-to-day interactions with the staff members being supervised. An employee self-assessment evaluation is not only a chance for a worker to take control of his or her career by giving feedback on the current situation, but also to inform management regarding the need for training or necessary resources to make future success possible. Number Four: Critical Incident Method. The critical incident method of performance appraisal involves identifying and describing specific events or incidents where the employee did something really well, or something that needs improvement. It's a technique based on the description of the event. And does not rely on the assignment of ratings or rankings, although it is occasionally coupled with a ratings type system. When applying this method, the manager describes in writing the employees behavior in critical incidents that occurred during the evaluation period. The manager documents what happened. How the employee was involved and what the employee did, or failed to do. Managers document incidents as they occur, and the incidents may be positive or negative in terms of the employee's performance. The documented critical incidents are used to identify an employee's strengths or weaknesses. Some managers encourage employees to record their own critical incidents where the employee excelled or situation that did not go so well. That's an interesting variation that places more responsibility with the employee and also, does not require the manager to have been present when the incident occurred. So hopefully by now, you will have gained a clear understanding of some of the different methods that can be used in conducting a performance appraisal, in order to evaluate employee performance. Hopefully you will join us for our last session, where we will explain the basic principles of designing an effective performance management system. Thank you. [MUSIC]
