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10 most accurate and effective employee evaluation methods

admin May 05, 2023

Employee evaluation methods are 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.

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Method name Advantages 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.
  • Impede office culture among employees.
Evaluation of human resource 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

The 360-degree employee evaluation method is a multi-dimensional evaluation method. This is a method that allows all 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 evaluation helps employees develop more comprehensive development of attitude, adaptability, teamwork ability, etc. However, this method is also subjective of the evaluator and sometimes also causes internal conflicts within the enterprise.

Employee Appraisal Method360 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 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.
  • This method of personnel evaluation is difficult to apply to enterprises 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.

 

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 evaluation 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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