What methods do managers use for performance evaluation?

Managers use methods such as 360-degree feedback, management by objectives, graphic rating scales, and self-assessment for performance evaluation.

360-degree feedback is a comprehensive method where feedback about an employee's performance is gathered from all around: their peers, subordinates, superiors, and sometimes, from customers and themselves. This method provides a holistic view of an employee's performance, highlighting strengths and areas for improvement from multiple perspectives. However, it requires a culture of trust and openness to be effective, as individuals must feel comfortable giving and receiving feedback.

Management by objectives (MBO) is another method where managers and employees agree on specific, measurable, achievable, relevant, and time-bound (SMART) objectives for a certain period. At the end of this period, managers assess how well the employees have met these objectives. This method aligns individual goals with the organisation's objectives, fostering a sense of ownership and motivation among employees. However, it may not be suitable for all roles, especially those that are not easily quantifiable.

Graphic rating scales are a simple and common method of performance evaluation. Managers rate employees on various job performance criteria on a scale, typically from poor to excellent. This method is easy to use and understand, but it can be subjective and prone to bias. It also may not fully capture an employee's performance as it focuses on individual traits rather than overall contribution.

Self-assessment is where employees evaluate their own performance. This method encourages employees to reflect on their work, identify their strengths and weaknesses, and set goals for improvement. It can be a valuable input to the performance evaluation process, but it should be used in conjunction with other methods as employees may overestimate or underestimate their performance.

In conclusion, the choice of performance evaluation method depends on the nature of the job, the culture of the organisation, and the purpose of the evaluation. Managers should use a combination of methods to get a complete and accurate picture of an employee's performance.