Fundamentals of Performance Appraisal Systems
Performance appraisals use absolute or relative grading. The design of evaluation dimensions (results, competency, behavior) and cycles is foundational.
【Absolute vs. relative evaluation】
Absolute: rated against a standard (e.g., S/A/B/C/D). Individual growth is visible.
Relative: ranked against peers (e.g., top 10% get S, next 30% get A). Easier to control salary budget.
Most companies blend both approaches.
【Three evaluation dimensions】
· Results: degree of goal achievement and outcomes
· Competency: level of skill and knowledge required for the role
· Behavior/Attitude: workplace conduct and embodiment of company values
【Designing evaluation cycles】
· Twice a year (semi-annual): most common in Japanese companies
· Quarterly: pairs well with OKR operations
· Ongoing: works best with strong 1-on-1 and feedback cultures
【Managing evaluations in WorkVell】
Distribute, collect, and aggregate evaluation sheets; compare self-assessments vs. manager ratings; view past evaluation history.
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