Overview of methods to evaluate work performance

Abstract

 Labor is a crucial asset of an organization because the talent and competence of employees are its competitive advantages. Appraising correctly work performance is an important basis not only to timely reward and mobilize individuals who have significantly contributed to the development of an organization, but also to identify unfulfilled goals so that establish other plans to ensure those goals will be achieved in the future. Currently, there have been many work performance appraisal methods applied by organizations, including: Traditional methods (essay method, work standards method, rating scales method, ranking method, forced distribution method) and modern methods (behaviorally anchored rating scale method, method of management by objectives, 360- degree feedback evaluation method, multi criteria decision making model method-MCDM). 

Using document research method, after analyzing characteristics, pros and cons of each appraisal method, this paper points out the strenght of MCDM method compared to the others. Among the MCDM methods, the article gives suggestions on the simultaneous combination of AHP (Analytic Hierarchy Process) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) to evaluate the work performance.