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November 21, 2025 16 mins
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This show is titled

‘’Methods of Performance Evaluation”

Source: surveysparrow.com/blog/performance-evaluation-methods-that-boost-employee-morale/


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Episode Transcript

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Speaker 1 (00:42):
Good evening everyone, Welcome to the new Heights Show on education.
My name is Manya Shupla and you are with me
on another episode of Empowering HR within the Workforce, your
go to podcast for the ever evolving word of HR.
This podcast is the way of sharing insights on building

(01:04):
a more effective and efficient workforce while also focusing on
your personal growth. If you tune into our previous episode,
thank you so much for your support. We talked about
how beauty industry beauty or cosmetic industry is transforming itself
to be more sustainable. If you missed it, be.

Speaker 2 (01:28):
Sure to check it out now.

Speaker 1 (01:36):
I have covered about performance management and how it works
in the previous episodes, and today we are going to
discuss about some useful and effective methods that are used
to evaluate the performance of the employee. So, starting from

(01:59):
number one is management by objective. Under this method, the
performance is evaluated based on how well the employee has
achieved the objective. Here, the manager reviews the past performance
and he finds where are the area of improvement or

(02:21):
what could be improved. Based on the insights by both
employee and manager, they jointly decide a goal and a
specific timeline to.

Speaker 2 (02:34):
Accomplish that goal.

Speaker 1 (02:37):
And the goal and the plan is related to the
organizational objectives. After regular feedbacks from the manager and discussion,
it evaluates the manager finally finally evaluates the performance of
the employee based on how the objective is achieved. Now,

(03:04):
let's see the positives of this method. So because of
because it it has a lot of discussion like deciding
a mutual goal and a timeline, it helps in building
a healthy communication with employee and manager. It also gives

(03:27):
freedom to employee on how they are going to execute
their goal. Now let's come to the cons of this
of this method, So it is objective oriented, so it
is only helpful in measuring the tangible outcome in the
performance review.

Speaker 2 (03:49):
Intangible outcomes like intangible.

Speaker 1 (03:52):
Skills like communication, negotiation, empathy, they often go even know.
The second con is it can be used for the
short term goals only. The next method I have here
is critical incident method. So this method measures the employees'

(04:16):
performance and performance related behavior. Here, the manager records the
employee behavior both good and bad where it has changed
the outcome of the incident. After observation, manager divides the
behavior descriptions like work attitude punctuality like work attitude punctuality

(04:42):
customer service, or it can be it can be more.
Through feedback and evaluation, manager keeps the recorded incidents together
and during during a meeting with employee, the manager review

(05:03):
the employee reviews the employee incidents during the during the year.
It depends on It depends on your on when you
are taking your performance review. It could be six months,
It could be six months also it could be quarterly. Also,
so after this manager gathers some more information about the

(05:24):
incident from the team members, analyze the facts and offer
the solution to the problem, and then evaluates the outcome.
So what are the positives of this method? It is
very useful in customer service where the issue the issue
handling is the performance metric and gives It also gives

(05:48):
insights on how to match existing employee behavior with best
practices talking about cons so it only identifies and addresses
the important issue and ignore the regular performance. The third

(06:10):
method I have here is checklist method. Now, as the
name says, a checklist is a list of traits, questions,
or statements that describes an employee on the job. The
manager checks of each one as positive or negative. Then
the performance is rated based on the number of positive checks.

(06:35):
Talking about positives, so it is easier to implement than
other performance evaluation methods. They It also helps to produce
more objective reviews and it provides greater clarity. Like with
checklist and the questions the statements we have, it provides more.

Speaker 2 (07:01):
The negatives.

Speaker 1 (07:02):
It requires a good judgment about the performance areas and
to some employees, they might feel that the list doesn't
cover their area of expertise. Let's come to the next method,
which is psychological appraisal. Now, under this method, psychologists test

(07:28):
employee with interviews and quizz Here manager breakdown. Managers break
down the employee behavior in two important components like interpersonal skills,
cognitive abilities, intellectual trades leadership skills, and then they connect
to with a connect with a qualified psychologist to administrate

(07:50):
to administer the test. In the test, the psychologist uses
some specific scenarios to test the employee employees ability and
then review the result in a UH in a meeting
with employee UH and plan employees career path based on
the data that they have received from the test. Now,

(08:16):
talking about the positives, so it evaluates employees' future potential.

Speaker 2 (08:20):
Like it, it.

Speaker 1 (08:22):
Could be helpful in succession planning. UH and psychological appraisal
can help in pinpoint the unaddressed mental health problems as
well the negatives. So they are slow and complex in
process and accuracy can vary according to the expertise of

(08:44):
psychologists and the emotional state of the candidates. So here
we have we have covered the four methods. Let's take
a quick break and we will be back soon.

Speaker 3 (09:00):
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(09:23):
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(09:46):
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Speaker 2 (10:01):
Welcome back listeners.

Speaker 1 (10:03):
So, prior to the break we discussed we discussed for
performance management methods like how we can evaluate the performance
of the employee. They were management by objectives, critical incident methods,
checklist method and psychological appraisal method.

Speaker 2 (10:22):
Now we will be discussing about.

Speaker 1 (10:24):
Behavioral behavior anchored rating scale. So it is a performance
evaluation method in a vertical or horizontal rating scale. The
scale grades range from one to five under these areas
are identified like key areas are identified and employee incidents

(10:48):
are compiled together to serve as the example of the
workplace behavior.

Speaker 2 (10:55):
Then the incidents.

Speaker 1 (10:56):
Are sorted and scale grades are assigned to them. After
that it is administered in the front in the form
of survey and tests. So what are the positives of
this of this method? So it is suitable for all
business types. It solves the it's like, it provides a

(11:20):
concrete behavior behavioral.

Speaker 2 (11:24):
Examples of each grades.

Speaker 1 (11:28):
And again the grades set a clear standard of performance evaluation.
Talking about the CONTs, so it is time consuming to
design and implement. It requires a regular update because job
requirements they keep changing over the time.

Speaker 2 (11:48):
Then the sixth one.

Speaker 1 (11:50):
The next method I have here is assessment assessment center method.
So here the employee are taken to an external assessment
center to participate in social exercise like group task simulation.
The goal is to assess their future performance based on
these tasks. So what are the positives. The positives are

(12:14):
It focuses on the potential performance just like the psychological
appraisal and the by observing how an employee work on groups,
manager can see that how they are going to work
in teams. The negatives are the assessment center can be

(12:35):
expensive and in this method, as it is a social
in nature, there can be possibility where the employees who
are introvert may score poorly. The next method I have
here is three sixty degree appraisal method. So under this method,

(12:55):
the under this the evaluation gets anonymou us feedback from
about the employee from four stage stages of appraisal. So
number one is manager feedback, peer reviews, subordinates and self evaluation.

(13:18):
Not talking about positives of these methods. So it lessens
the manager's bias by bringing others perspective and because they
are anonymous, they give a chance for an honest review.
Now the negative of this method is it is time

(13:38):
intensive and it needs planning. It is based on the perception,
so it might not be always accurate. Now, the last
one that we are going to discuss here is seven
to twenty degree feedback. It is same as three sixty
degree feedback. It has that four stages of a from

(14:00):
cell like from manager, PO, subordinates and self evaluation. But
it also involves the outside party like clients, vendors, investors,
So it is just same as the three sixty but
it requires it has the here you are getting the

(14:23):
reviews from the outside party as well. Again, the pros
and cons are also are also similar to three sixty
degree appraisal. Like proses, it provides, it provides overall feedback
like inside the company and even the outside the company.

(14:43):
It provides the overall feedback of the employee and it
reduces the appraisal barriers as well talking about negatives. So
it is even more time consuming than three sixty degree
appraisal and it is only useful for forward facing roles
like customer service and supply chain management. So these are

(15:09):
all the methods the like performance evaluation methods that I
wanted to share with you, and I hope it helped
and I hope this episode is helpful for you. So
that's all for today's episode. I hope you have a
great weekend.

Speaker 4 (15:27):
Thank you, take care and guaranty
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