Performance Assessment with Digital HRMS: Understanding the Types of Performance Evaluation

Performance reviews or performance assessments are essential for the growth of employees in the organisation. The objective of a performance evaluation process is to reward the employee for the good work and achievements and at the same time, make them see how they can improve on their performance. There are many different approaches or methods of evaluating the performance of the employees in the organisation and enterprises today use one or more of these methods. Every method has its own share of benefits and drawbacks and is ideal for different scenarios.

The new age performance assessment system is a platform that allows organisations to evaluate employee performance based on one or more of these methods. Digital HRMS is one such automated platform for performance assessment that can be configured as per the approach followed by the organisation. Here we shall look at the 5 key methods used today for measuring the efficiency and performance of employees.

1] Self-Assessment

Self-assessment is, by far, one of the most common approaches of employee performance evaluation used by organisations today. What's more, self-assessment comes with its own share of benefits. The process is all about the employee filling a questionnaire based on different performance parameters, as they rate their own performance on a scale. Once they are done, the manager talks with them on different ways in which they can improve their performance. Self-assessment is believed to be highly effective because it allows the employees to reflect on their own strengths and weaknesses and work upon them.

2] Goal Based Evaluation

This is a simple approach that considers the goals defined for that particular year and the results that have been successfully achieved. It is a quantitative approach and its objective is to figure out if the employee has been able to live up to the expectations of the organisation in terms of the goals and targets. This method is really effective for teams that work on target basis.

3] 360 Degree Evaluation

What makes the 360 degree evaluation stand out from the other evaluation methods on this list, is the fact that it is all about considering the feedback from everyone who works with the employee, including team members, members of other teams, as well as clients and suppliers. The outcome is the result of comparison between the feedback shared by the different stakeholders. This one is considered as one of the most complete methods of evaluation of performance.

4] Graphic Rating Scale


This is the simplest way to evaluate the performance of the employees, as well as the most basic approach on this list. The graphic rating scale involves creating two columns, with the left column containing the list of parameters and the right column is used for rating the employee on the basis of each parameter on the scale of 1 to 5 (or any other suitable scale). Nowadays, this method is not used on its own but along with other evaluation processes.

5] Team Assessment

Most organisations focus on the performance evaluation for individual employees, however, some also chose to evaluate the team as a whole. This is because team effort is instrumental in the success of an organisation and so the performance of the team plays a key role. Team assessments mostly focus on aspects like coordination, collaboration, communication, etc. which are the factors affecting teamwork.

So, that was about the five key methods of evaluating employee performance in an organisation. Which one do you think is the most effective? Share your thoughts with us in the comment section below.

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