There are six modern performance appraisal methods:
1. Management by Objectives (MBO) – where managers and employees collectively identify, plan, organize and communicate goals.
2. 360-Degree Feedback – a continuous process whereby every employee appraises his/her managers, peers, customers, suppliers, and does a self-evaluation.
3. Assessment Centre Method – tests employees in a social situation.
4. Behaviorally Anchored Rating Scale (BARS) – compares employee performance with behavioural examples using numerical ratings.
5. Psychological Appraisals – focuses on an employee’s future performance rather than their past work.
6. Human-Resource (Cost) Accounting Method