Garry Dessler, 2007 comments that managers must follow a three step process to improve the value of the performance appraisal system in their firms. The first step is to define the job clearly to the employees, subordinates and making them agree to the standards established for each job based on the job responsibilities, activities and duties. The next step is to appraise performance by comparing the actual performance of the employees with the standards established.
In this step, the author recommends several appraisal methods to the manager including the graphic rating scale method, alternation ranking method, paired comparison method, forced distribution method, critical incident method, MBO, computerized and web based performance appraisal systems. Garry Dessler, 2007 states that there are a lot of problems and issues that arise during the performance appraisal and the manager must conduct the performance appraisal in a transparent manner and handle the problems effectively to conduct the performance appraisal in a successful manner.
The final step in improving the value of the performance appraisal system is to conduct feedback sessions. The most popular feedback method among the corporate is the 360 degree appraisal (Randy L. Desimone, 2008). Firms also use a mixture of methods to appraise the performance to increase its value in the firm. Randy L. Desimone, 2008 discusses a performance appraisal case at General Electric (GE) and the success of the 360 degree feedback in the company.
In this method, employee ratings are collected from all the stake holders of the firm including the customers, suppliers, supervisors, peers, sub ordinates etc. Many firms accuse the method for involving more paper work. To rectify this problem, the method is simulated in the internet and web based 360 degree feedback as seen in visual 360 website is getting popular among the corporate and the managers to increase the value of the performance appraisal in their firms.