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10 most accurate and effective employee evaluation methods


The self-assessment method carries many risks It is an integral part of human resource management. These methods help businesses evaluate employees during their work. However, the application of performance evaluation methods should be carefully considered to ensure objectivity. In this article, together Viindoo Choose the best solution from the 10 methods below.

Method name
Advantage
Defect
360 degree employee appraisal method
  • Raise individual awareness.
  • Encourage employees to develop themselves.
  • Start self-development activities.
  • Filtering information takes a lot of time.
  • Requires the competence of the person who appreciates it.
  • May cause internal conflicts.
Management by Objectives (MBO)
  • Set clear goals and measure results easily.
  • Increase interaction between employees and superiors.
  • Increase employee initiative and creativity.
  • Not suitable for business model in Vietnam.
  • The results are difficult to predict.
Checklist method
  • Commonly used and easy to deploy.
  • Provide clear assessment information about employee capacity, so it is easy to classify employees.
  • Difficult to determine the exact level.
  • Influenced by the individuality of the reviewer.
Evaluation of personnel according to the capacity scale
  • Criteria are clear and easy to understand.
  • It is easy to compare employees because a comprehensive perspective is provided.
  • Loss of accuracy because each employee has a different job.
  • Obstructing office culture among employees.
Assessing human resources capacity by rank ranking
  • Simple, easy to understand, easy to implement.
  • Allows visual staff performance ratings.
  • Easy to cause competition, not satisfied with the evaluation results.
BARS
  • Clear and consistent assessment standards.
  • Focus on evaluating the appropriate criteria.
  • Great investment effort.
Model ASK
  • Applicable in many different working processes
  • Evaluate according to the 3 most important criteria.
  • It takes a long time to implement.
  • It is difficult to assess the soft skills of employees
Pair comparison method
  • Simple, easy to implement, does not require a lot of resources.
  • Spot the difference between employees.
  • Bias in evaluation.
  • Not the right base to foster talent.
The method of evaluating employees by scorecard
  • The criteria are clearly expressed and easy to implement.
  • Simplify evaluation criteria.
Self assessment
  • Self-assessment helps employees become aware of their own abilities and limitations.
  • Employees are evaluated using pre-agreed criteria.
  • The results obtained are not accurate because employees may overestimate or underestimate their own abilities.
  • Not suitable for businesses with a large scale or a large number of employees.

1. 360 degree employee evaluation method

Employee Appraisal Method 360 degrees is a multi-dimensional assessment method. This is a method that allows members of the company to participate in the evaluation based on the feedback of: direct managers, colleagues, employees from other departments, customers, etc. 360 degree review help employees develop more comprehensively in attitude, adaptability, teamwork ability, etc. However, this method is also subjective of the evaluator and sometimes causes internal conflicts in the business. Karma.

The self-assessment method carries many risks360 degree employee appraisal method

The advantages of using 360-degree feedback include:

  • Raise individual awareness of implementation and impact on stakeholders.
  • Play an important role in starting coaching, counseling and career development activities
  • Encourage employees to invest and apply in personal development.
  • Incorporating performance feedback into the work culture will help improve work efficiency.

However, this method also has the following disadvantages:

  • With a large staff, aggregating and filtering information from many different rubrics can become complicated and time consuming.
  • Reviews are subjective and sometimes cause internal conflicts as negative reviews can be personally offensive. However, if employees are afraid of offending each other without pointing out mistakes, the employer cannot make good use of the data obtained.
  • If the evaluator is not experienced enough or does not have enough information, the assessment will not be standard.

2. Management by Objectives (MBO)

Management by Objectives (MBO) is a method to support managers and employees to interact better, promote self-discipline of employees. However, if businesses want to apply this method effectively, it requires good vision, strategy and implementation. To evaluate performance in the MBO process, a company needs to define SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals to ensure they are feasible and measurable.

To be successful, the MBO process needs to be integrated into the organization-wide goal-setting and evaluation process, strengthening employee engagement and allowing them to think about the future. However, this method is often difficult to apply to businesses in Vietnam.

The self-assessment method carries many risksEmployee evaluation according to MBO method

The advantages of this method are:

  • Makes setting clear goals and measuring results easy.
  • Encourage employees to interact with superiors and focus on accomplishing goals.
  • Help increase the initiative and creativity of employees.
  • Suitable for companies with high growth.

Besides, this method has the following disadvantages:

  • It is difficult to quantify results, especially for jobs that cannot be measured with numbers.
  • Sometimes being too focused on the goal, leading to ignoring the cultural and spiritual values ​​of the company that affects the performance is the employee's job.
  • This process should be integrated into the organization's assessment and goal setting processes and should be supported by evolving metrics tracking tools.
  • HR evaluation methodThis is difficult to apply to businesses in Vietnam.

3. Checklist method

The checklist method is an employee competency assessment tool set forth by the manager to evaluate the human resources team. By using a series of simple "yes/no" questions, managers can gather opinions about specific employee performance. Managers only need to distribute questionnaires to employees, then synthesize information from the questionnaires.

Sample of employee capacity assessment by checklist methodSample of employee capacity assessment by checklist method

The advantages of the employee evaluation checklist method are:

  • Commonly used and easy to deploy.
  • Provide clear assessment information about employee performance.
  • Easily compare and categorize the capabilities of your employees.

But businesses need to use this method together with other evaluation methods because of the following disadvantages:

  • It is difficult to determine the correct level of assessment for employees because the answer is only two options "Yes/No", which is only enough to assess whether the employee meets the set criteria or not.
  • May be affected by the dishonesty of the reviewer.

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4. Evaluate personnel according to competency scale

Scoring method Competency is one of the most effective ways to evaluate employees. With this method, each position will have a certain set of capabilities and the manager will use that to rank employees on a scale from good to weak. This helps to evaluate the employee's capacity in an objective, clear and highly authentic way.

Evaluation of personnel according to the capacity scaleEvaluation of personnel according to the capacity scale

Advantages of this method include:

  • This method is very clear, the evaluation criteria are clearly defined and easy to understand.
  • Help management have a comprehensive view of the capacity of each employee.
  • Easily compare employees, help management make decisions about promotion or salary bonus.
  • Easily detect and resolve employee performance issues.

Disadvantages of this method include:

  • Scoring may compromise the accuracy of the results, as each rater may have different standards.
  • It is difficult to assess all personnel because each employee is assigned to different office departments (different requirements, tasks, levels of fulfillment)
  • Prevent creativity, sharing and self-discipline of employees because some will only focus on completing the criteria included in the evaluation framework.

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5. Evaluation of human resource capacity by rank ranking

Employee competency assessment method Hierarchical ranking is a fairly simple method. By comparing the performance of employees with each other, administrators can easily assess the capacity of each employee. In particular, this method is often applied in small businesses because it is easy to track employees because of the small number of employees.

The self-assessment method carries many risksSample of human resource capacity assessment according to rank ranking

Advantages of this method:

  • Relatively simple, easy to understand and easy to deploy in organizations.
  • Allows managers to compare and rank employees' capabilities visually and easily.

Defect:

  • It doesn't really make sense because ratings are used as a means to differentiate and advance between different ranks.
  • It is easy to have problems of competition and dissatisfaction among employees of the same level, affecting the working atmosphere and the development of the organization.

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6. Behavioral evaluation method BARS

BARS (Behaviorally Anchored Rating Scale) là một Employee evaluation method behavior-based. This method builds a table of evaluation criteria based on the specific behaviors of employees at work. This table is developed using a series of behavior cases, or a list of behavior levels, that allows the evaluator to comment on employee behaviors.

With BARS, each criterion is described with specific behavioral examples, which are associated with different levels of quality of that behavior. When evaluating, employees will be placed into behavioral levels and evaluated based on predefined criteria. From there, the evaluator can summarize the results of how the employee's behavior achieved the desired level.

This method improves the accuracy and reliability of the evaluation process and helps assessors make a comprehensive assessment of employee behaviors.

The self-assessment method carries many risksEvaluate employees according to the BARS method while working with customers

The advantages of BARS are:

  • Applying clear, specific standards should be accurate and consistent. Employees can rely on feedback to improve their performance.
  • Eliminate irrelevant criteria and focus on specific, easily observable behaviors.
  • Focus assessment on specific behavior, evaluate more objectively and honestly.

Besides those advantages, this method has the following disadvantages:

  • Depends on the ability of the evaluator as not everyone is qualified to standardize standard behaviors.
  • Requires more preparation and investment than other methods, especially in building accurate behavioral descriptions.

7. Capacity assessment according to the ASK model

Model ASK Benjamin Bloom's was created in 1956 to standardize the assessment of competency at work. This model is built based on three groups of standards including attitude (Attitude), skill (Skill) and knowledge (Knowledge).

The ASK model not only helps businesses recruit quality employees, but also helps evaluate employees' capabilities in quarterly or annual evaluations. These assessments will serve as the basis for developing compensation, promotion and compensation plans. From there, businesses can develop sustainably with talented and dedicated human resources.

The self-assessment method carries many risksCompetency framework for assessing ASK employees

Advantages of Employee evaluation method According to the ASK model:

  • The ASK model provides a comprehensive approach according to specific scales to assess the competence of employees according to the criteria of attitude, skills and knowledge.
  • ASK helps to focus on the three most important factors in employee competence, making assessment more accurate and objective.
  • This model can be applied in many processes: candidate screening, capacity assessment during the interview process, internal training, personnel assessment and training evaluation.
  • The results of the assessment according to the ASK model can be used to plan training, training and promotion for employees.

Disadvantages of this method include:

  • The ASK model takes a lot of time and effort to design and implement, especially in large companies with a large number of employees.
  • ASK can be affected by personal factors such as the evaluator's preferences and thoughts, so it is necessary to ensure uniformity and objectivity in the evaluation process.
  • It is difficult to assess the soft skills of employees.

8. Pairwise comparison method

Evaluation method by pair comparisonIs oneHR evaluation method objective and fair. By comparing the employees in the company with each other, the administrator will create competitiveness in work and promote employee productivity in the best way.

The pairwise comparison method is easy to implementThe pairwise comparison method is easy to implement

Advantage:

  • The pairwise comparison method is simple and easy to implement, and does not require a lot of resources and time to implement.
  • Pair comparison helps to detect differences between employees, helping managers make decisions about retaining, promoting or firing employees.

Defect:

  • Pairwise comparisons can lead to evaluation bias, as the raters may be unfair in comparing two employees.
  • Pair comparisons do not provide a comprehensive assessment of each employee's performance, but rather focus on comparisons between employees.
  • The results of the pairwise evaluation are not a suitable basis for selecting the talents that need to be fostered for the company.

9. The method of evaluating employees by scorecard

Employee Appraisal Method Scoring is a popular method of evaluating employee performance. Employees will be evaluated based on the criteria given by the administrator, on a scale from high to low. This is a suitable assessment method for businesses with a small number of employees.

Employee evaluation form with transcriptsEmployee evaluation form with transcripts

Advantages of this method include:

  • Easy to implement, clear, easy to understand.
  • The evaluation criteria are clearly shown, making it easy to assess the capacity and performance of employees.

Defect:

  • The use of scorecards can lead to a great deal of pressure on employees in the work process when it is always necessary to please the manager and can cause feelings of dissatisfaction and lack of motivation.
  • Leads to oversimplification of evaluation criteria, which do not adequately reflect important aspects of the job and of the employee.

10. Self-assessment

Self-rated as HR evaluation method allowing employees to self-assess and improve their performance. However, the high subjectivity of the evaluator is a major minus point of this method that managers need to pay attention to. Satisfaction or complaints about employee work should be recorded and resolved by a face-to-face meeting.

Self-assessment method helps employees realize their capabilities and develop themselves at work. By assessing their own capabilities, employees can confidently express themselves. The results of this assessment will then be discussed with management to better understand the hidden deficiencies and ways to take advantage of the employee's strengths and help the employee improve his or her weaknesses.

The self-assessment method carries many risksThe self-assessment method carries many risks

Advantage:

  • This method is very simple and easy to implement.
  • Self-assessment helps employees self-aware of their own abilities and limitations, and helps managers have an overview of employees.
  • Employees are evaluated by pre-agreed criteria, ensuring everyone can do it themselves.

Defect:

  • This method is easily influenced by subjective factors, so it will not be as accurate and objective as other evaluation methods. Therefore, businesses need to combine other methods in parallel to get the best results.
  • When employees self-assess, the results obtained are often inaccurate because employees may overestimate or underestimate their own abilities.
  • This method is often not suitable for businesses with a large scale or with a large number of employees, taking time and not being highly effective.

Although each Employee evaluation method Each has its own advantages and disadvantages, but it is still an accurate and effective tool to measure employee performance. Therefore, businesses need to choose the most suitable method to apply in practice. Hope the above information of  Viindoo will help businesses make the right choice and bring good results.

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Jun Nguyen April 30, 2023

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