Performance Evaluation Methods

In this article, we will discuss performance evaluation methods, including those based on comparison, absolute methods, metric-based methods, business result-based methods, and the 360-degree performance evaluation method.

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First, let us emphasize the considerations that must be taken into account during the performance evaluation process:

1. The performance evaluation must emphasize the achievements the individual has made in their position and their competence in reaching the organization’s objectives.

2. The performance evaluation should focus on the individual’s job performance rather than the evaluator’s impression of the person’s habits or character. Performance evaluation should be objective.

3. The evaluation must be acceptable to both the evaluator and the individual being evaluated.

4. Performance evaluation should serve as a basis for improving the individual’s productivity by further developing and qualifying them.

5. Based on the results of this evaluation, necessary corrections and improvements should be made in the unit, department, or relevant general management regarding the service or product.

Among the most important performance evaluation methods:

First: Comparison Methods. These methods are based on comparing the performance of the individual under evaluation holistically with that of other employees and ranking them in descending order according to the results of the comparison. They include the following:

1. Simple Ranking Method. In this method, employees are ranked sequentially based on their overall performance compared to those in similar positions within the organization performing the same tasks and duties.

2. Reciprocal or Alternating Ranking Method. In this method, a distinction is made between the best performers and the worst performers. A list is prepared with the names of the employees to be evaluated; then, the top-performing employee is chosen and placed at the top of the list, followed by selecting the worst-performing employee and placing them at the bottom. The process is then repeated.

3. Paired Comparison Method. This method is essentially a variation of the simple ranking method and is sometimes called the binary or paired comparison method. Each employee is compared with all other employees in the same position as one group by comparing the employee’s overall performance with that of each group member individually in pairs. In each pairing, one employee is given the advantage. The evaluator then moves on to the next employee in the group, comparing their performance with each member of the group one-on-one, until the comparisons for the entire group are completed. The final evaluation of the employee is then determined based on the number of times they received the advantage within the group.

4. Forced Distribution Method. In this method, employees are distributed according to the normal distribution curve, which typically centers around the middle with fewer employees at the extremes. Usually, 50% of employees fall in the middle (representing good performance), 15% at each end (representing very good and satisfactory performance, respectively), and 10% at the extreme ends represent high and low performance overall. The evaluator (supervisor) is compelled to assign employees along the curve to match the percentages of the normal distribution.