- In a standard evaluation, a manager will meet with the employee and evaluate her on job-related categories including attendance, productivity, judgment, job knowledge and initiative. Goals and objectives for the next time period, usually a year, will be discussed and recorded. This method is often referred to as management by objectives (MBO). The employee has the opportunity to respond to the evaluation both during the appraisal process and in writing and then is asked to sign the evaluation. This document then becomes part of the employee's permanent file and will be used as a reference to monitor progress and judge improvement at the employee's next evaluation meeting.
- An employee self-evaluation is very similar to a standard evaluation except that the employee will use the same criteria to evaluate himself, after which the manager and employee meet to compare notes and discuss future objectives. This method can be very effective as it makes the employee think honestly and objectively about his work performance, productivity and role within the company. Often the employee himself can produce a logical course of action for work improvement or effective changes to his current job routine.
- 360 degree feedback is an appraisal process which includes evaluations from co-workers, supervisors, managers and others who interact with the employee during her workday. This type of feedback gives the employee valuable information as to how others perceive her and her work methods, productivity, teamwork, goal setting skills and leadership potential. This type of appraisal is anonymous in nature and even the employee is part of the process, as she is also required to evaluate herself. This evaluation method does not cover issues such as attendance, tardiness or technical skills but focuses mainly on the interpersonal relationships of the employee.
- Performance ranking is a highly competitive process where management ranks an employee among co-workers in the order of productivity and job knowledge. This system works best when employees are expected to meet a certain quota. It encourages competition and individual enterprise within the company and can be used to effectively increase sales and productivity.
The downside of this system is that sometimes an employee's success does not come from his own focus or hard work but rather the weaknesses of his co-workers. This type of appraisal is not conducive to creating teamwork and camaraderie but rather an "every man for himself" attitude which can be a detriment to company growth and development.
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