Performance Assessment Method Performance Assessment Method There are 6 types of performance appraisal methods that are most widely recognized, namely: 1. Management By Objectives (MBO) Management by objectives (MBO) is an employee performance appraisal method where managers and employees discuss and plan the objectives to be worked on in a certain period. Once the objectives are set, the manager and employee will discuss periodically the progress and possibilities to achieve the targets. At the end of the period, the employee will be assessed based on the results. If they achieve the target, they will be rewarded. But if not, they will be given a transfer or more training. 2. 360-Degree Feedback This method of employee performance appraisal is one of the most multidimensional. Employees will be evaluated based on feedback gathered from their supervisors and coworkers. This method not only eliminates bias in performance appraisal, but also provides an in-depth understanding of a person's competencies. The integral components in this method are as follows. a. Self-Appraisal b. Managerial Review c. Peer Review d. Subordinates Appraising Review e. Customer Or Client Review 3. Assessment Center Method In the assessment center method, employees will get a clear picture of others' observations and the impact on their work performance. The advantage of this employee performance assessment method is that it not only assesses current performance, but also predicts future performance. During the assessment process, employees will be asked to participate in exercises such as informal discussions, role plays, fact-finding exercises, and decision-making exercises. 4. Behaviorally Anchored Rating Scale (BARS) BARS is an employee performance appraisal method that provides both qualitative and quantitative benefits in the process. In this method, an employee's performance is compared to behavioral examples that are associated with a numerical ranking. Each performance level on the BARS scale is formed into several BARS statements that describe the employee's behavior. These statements will benchmark the individual's performance against the standards set for their job role and level. 5. Psychological Appraisals Psychological appraisals are an employee performance appraisal method that can help discover an employee's hidden potential. This method focuses on analyzing an employee's future performance compared to their past work. This performance appraisal method analyzes the important components of an employee's performance. Some of the components analyzed from an employee are as follows. a. Interpersonal Skills b. Cognitive Skills c. Intellectual Traits d. Leadership Skills e. Personality Traits f. Emotional Quotient 6. Human-Resource (Cost) Accounting Method This employee performance appraisal method analyzes employee performance based on the monetary benefits that a person provides to the company. This analysis is obtained by comparing the cost of retaining an employee and the contribution the employee makes in monetary terms. In this method, factors such as quality, overhead costs, interpersonal relationships, and others are taken into account. Assessment Preparation 1. Planning As with most activities, assessing performance must start with planning. For the year ahead, planning is usually prepared at the beginning of the year. This initial stage is made strategic to set employee performance targets, especially related to what competencies the company expects in each employee. In addition, ideal assessment standards must also be considered. To be able to make an ideal assessment, the assessment must be objective and in accordance with the vision and mission agreed upon from the start. In the planning stage, it is also determined what kind of method to use. Some well-known methods are Behavior Appraisal System, Personal or Performer Appraisal System, Result Oriented Appraisal System, and Contingency Appraisal System. 2. Data Preparation If the planning is mature, then the next step is to try to compile data. Data such as work reports, special records in the company, to other data as support must be prepared. The data is used as a reference for managers or leaders to compile work appraisal materials. The assessment material should be structured, measurable, realistic, and easy to apply. The standards of performance are also made specific based on the position or position of the employee to make it more practical to describe the assessmen according to their respective responsibilities. 3. Implementation Implementation is the crucial stage, especially when there is feedback on the process throughout the year. This implementation stage also includes monthly or midyear reviews. The process of giving feedback can be done by giving direction from the leader to the members. For this reason, this stage requires two-way communication so that there are no misunderstandings. Giving direction and feedback here is very important so that the goals that have been set in the planning can be achieved. But, if it is really needed, a review can also be carried out regarding the work objectives determined at the plan stage. 4. Performance Assessment When you get the results from the implementation stage, of course there must also be an assessment at the end of the year. This stage also requires inte communication regarding the review of the entire performance appraisal process carried out throughout the year. The leader or person who assesses must discuss again with his team to find various points of view. Assessment can be done by comparing the results of employee performance with the provisions of standards that have been set and agreed upon. That comparison will be used to identify the performance of employees, to find out whether th achievement is in accordance with the expected target. To review the results of the assessment should also be done by involving employee responses to get different views as reference material. 5. Result Report When all the steps have been carried out from preparation to review of the assessment results, the last step is to make a report of the results. The appraisal process report is then submitted to each employee for their reference or guidance. It can also be conveyed about what plans the company will do so that employees can prepare or provide input. Assessment Orientation There are three kinds of criteria that are often used in the employee performance appraisal process, namely: 1. Individual Performance Results If work output is the preferred work aspect of the position, then individual work output can be used as an assessment criterion. 2. Behavior In many positions, it is difficult to determine specific outputs that can be used as assessment criteria. In these positions, management can use behavior as an assessment criterion. This is because behavior is a determining factor in th effectiveness of employee work. The behavior assessed is not always behavior that is directly related to productivity. What is important is that the behavior helps the effectiveness of the organization's work. 3. Traits Traits are individual characteristics that often appear and describe individual behavior. Traits are the weakest assessment criteria because of the three criteria, traits are the furthest from the actual performance of the individual. Good or desirable traits are criteria that are not related to job performance. In socia interactions these traits tend to be noticed by others, including by immediate supervisors. Assessment Systems Before conducting employee performance appraisals, the appraisal team must first design the appraisal system that will be carried out, which includes: 1. What parameters are to be assessed. For example, compliance with deadlines, level of customer satisfaction, etc. 2. Classification of performance types, e.g. performance of managers, ordinary staff, etc. 3. Classification of the level of performance achieved. For example, the results achieved when viewed from the level of satisfaction, quantity, etc. 4. Performance measurement procedures. Tools used include the measurement scale model used (interval, rank, ordinal, etc.), the method of calculating the score, the instrument used to rank. 5. Assessment techniques, including the frequency of assessment, the tools used (computerized or manual), the method of feedback on the assessment results.