Using Results-Based Measurement in Performance Appraisal

Performance appraisal has always been the most challenging aspect of work management. Although most managers are still following evaluation processes based on a value judgment, more and more decision-makers are now adopting results-based measurement in performance appraisal. There are many task management systems in the market that not only keep track of key performance indicators but also determine employee performance, competence, capability, and contribution. With the help of these productivity tools, it is much easier to do project planning with the right people for the right task.

Advantages

Why need a results-based measurement in determining performance? Well, it is easier to rank employees based on performance metrics and once everyone is ranked, it will foster a competitive environment where good performance is rewarded. On the other hand, it also helps managers determine areas where someone has to improve on. In this way, regular and relevant feedback can drive up individual performance. It is an ideal situation when everyone is working at their optimum performance in a competitive environment.

In the long term, all the constant performance appraisals will help managers determine areas of improvement and eventually help boost the career development of everyone in the organization. Once everyone is on the optimum performance level, it is easier to measure other intangible factors that affect individual and team performance. Quality and productivity is the most important factor that should be taken into consideration in performance measurement. Communication has a big part in the way organizations work and without clear channels of communication, any type of work will bog down. Team spirit is another intangible factor in performance appraisal.

Disadvantages

Managers and employees alike should know when and how performance appraisal is put into action. Although fostering competition in an organization is one way of boosting performance, it can also be a double-edged sword as it disrupts team harmony and cooperation. Why? Constant comparison of employees is undesirable to some.

Ratings can be skewed to some people. Bear in mind that ratings are subjective so a five-star rating cannot judge the accomplishment and dependability of an individual. Besides, different people may rate differently on the same task.

Some managers load up their feedback only on deadline and not on the day you made a big mistake or messing up on the assigned tasks. They only used the productivity tool only to show their biased appraisal process. In that way, it is only guaranteeing bad performance, employee attrition, and workforce turnover.