In definition, a performance review is an organized and cyclic operation that measures the job performance and productivity of an employee in relation to certain criteria and objectives of the company. The way of managing performance in a company or institution predicts to a degree the company’s failure or success. Therefore, improvement of performance review tools should be one of the top priorities of a company.
With this, there are many performance review tools offered. And these are as follows:
This is a method wherein the rater ranks his subordinates based on performance. Having this type of performance review tool, the employee ranking in a group is performed in contrast to other employees . Numerical ranking is used to test this tool.
Forced Distribution Method
Within this tool, raters are given mandate to provide a certain portion of ratings to different classes or markings/percentiles. The workers who have met or exceeded the standards may be part of the top 10 percent.
Critical Incident Techniques
Using these performance review tools, the manager prepares lists of statements of both effective and ineffective employee behavior. These represent either the poor or outstanding employee behavior in their respective jobs. The manager keeps logs of employees including their records of incidents in their work. The recorded critical incidents are utilized in the evaluation of the employee’s performance.
In this tool, a great number of statements describing a specific job are given. The statements have a scale value attached to it. The supervisor ticks the statements that best describe the behavior of the employee who is being assessed. This one of the most used performance review tools.
Many probable benefits may be seen if the management or the company formally uses performance review tools. It has been found that performance reviews bring positive results to most companies. Moreover, performance reviews can provide the company a sense of effectiveness since these frequently lead to employees receiving an objective feedback about their performance in their respective jobs. Due to this, increased level of productivity may be reached and expected from the employees.