HR Performance Management Systems for Talent Development

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  • 0:00 HR Performance…
  • 1:11 360 Degree Feedback Appraisal
  • 1:52 Psychological Employee…
  • 2:39 Objective Management Appraisal
  • 3:36 Straight Ranking Method
  • 4:22 Lesson Summary
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Lesson Transcript
Instructor: Noel Ransom

Noel has taught college Accounting and a host of other related topics and has a dual Master's Degree in Accounting/Finance. She is currently working on her Doctoral Degree.

This lesson focuses on some of the methods employers use to evaluate the performance of employees. It includes an overview of several types of performance evaluation systems.

HR Performance Management Systems

Human resource departments utilize various methods to evaluate and assess an employee's performance throughout the year. Employee appraisals are evaluations that assist employers and managers with determining how well an employee has performed his or her duties over a specific period. There's not just one way to evaluate an employee. Various methods can be used depending on the type of job and the type of company.

For example, Laura manages a large group of call center agents, and she wants to make sure that all of her employees receive timely feedback on their performance throughout the year. Laura decides to meet with each of her agents to review their performance, but she isn't sure which type of employee appraisal she should use. Laura reaches out to her human resources manager for some assistance, and he gives her a few options, including 360-degree feedback, psychological, objective management, and straight ranking employee appraisals. Laura isn't sure which of these she should use. Let's follow along as she researches each one to determine the best appraisal method.

360-Degree Feedback Appraisal

The 360-degree feedback employee appraisal is a process that includes surveying an employee's teammates, supervisors, and customers to get an evaluation of the employee's performance. This method works best with employees who work closely with peers or other team members for long periods of time. For example, an employee might work on a 6-month project with team members outside of her regular department, as well as interact with customers. A 360-degree feedback employee appraisal will help the employee's manager understand how well the employee has worked with the team and the employee will receive feedback from multiple people representing different business areas.

Psychological Employee Appraisal

The psychological employee appraisal assesses an employee's emotional stability, critical thinking, and analytical skills as well as his or her specific intellectual capability. This type of appraisal usually starts with an assessment or questionnaire that includes a series of behavior-based scenarios. The employee answers the questions based on how he or she would react given a particular situation.

The questions allow the employee an opportunity to express how he or she would approach a workplace issue or resolve business problems. Psychological employee appraisal results are compared to the employee's performance and can help the employer determine what training methods to turn to in order to best utilize the employee's unique talents.

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