Discover the importance of performance appraisal

What is it for and what are the existing performance appraisal modalities? Do you know which are the most practiced by companies? Find out here.

Performance evaluation is understood to be the process of  qualitatively and quantitatively measuring the performance and behavior  of employees of a particular company or institution, either individually or in the context of teams.

Basically, performing a performance evaluation means that you are going to measure the performance of an employee or a team over a period of time.

The method consists of a systematic evaluation, carried out by the supervisors or superiors of the employees, which works as a barometer for the functioning of the organization . It is also a tool that allows companies to identify problems of integration, supervision, motivation and underutilization of the potential of their people.

On the other hand, it allows employees to see how their work is contributing to the company’s success and fits into its context, culture and mission.

It is also important to mention that performance appraisal should be oriented towards the future. This means that it must be based on actions to develop human potential within the organization.

In this way, the tool becomes an excellent way to increase productivity , improve the quality of life in companies and improve the quality of the work that is developed.


There are several ways to conduct a performance appraisal that are usually selected by the person performing it. Learn about the main performance evaluation methods that are developed in companies:

Competency assessment

This is the evaluation method that has been increasingly used in companies in general. In the competency-based assessment, consultants identify (in the company and in the employees) evidence of performance and knowledge with regard to technical or behavioral competencies that are strategically needed for the company.

But why is this type of evaluation so important? Through competency assessment, the company will be able to direct its focus to the intended goals.

The objective is for the people management or human resources department to understand which skills employees already have and which skills are needed for the functions. In this way, they can adjust what they already have to what needs to be developed.

180 degree rating

Have you ever heard of this performance appraisal method? It is also one of the most used in companies. In the 180 degree evaluation, the role of the Human Resources manager is to mediate the evaluation between employee and manager , which happens mutually, with extremely valuable feedback.

It is a type of evaluation that works as an opportunity to give and receive feedback, between leaders and followers. The objective is to be able to identify strengths and points of evolution, while also identifying the skills and talents of employees and the leader. For the results to be effective, the company must have fully efficient internal communication.

360 degree evaluation

360 degree feedback is also known as 360 degree feedback and proves to be quite powerful due to the fact that it is provided by multiple sources.

So, if what you’re looking for is  complete feedback on an employee’s performance to then form a more in-depth assessment, this is the perfect type of assessment.

A 360-degree evaluation allows you to collect feedback from all quarters of the organization: managers, co-workers, customers, salespeople, employees, etc.

Although this form of assessment is a bit labor-intensive and time-consuming compared to other techniques, many employers prefer it because of the integrative and multidimensional character it provides to the assessment.

Peer comparison review of performance appraisal

Ever heard of binary comparison? It means exactly the same thing: it is when a comparison is made between the performance of two employees.

The advantage of this method is that it is quite simple to put into practice and is suitable for small teams where there is a good level of internal communication.


In this type of performance evaluation, the employee has to evaluate himself and characterize his own performance.

Basically, they are encouraged to evaluate their performance, effectiveness and efficiency and after the analysis phase, the results are discussed with their immediate superiors. The objective is to develop a plan according to the less developed areas.

Performance appraisal by objectives

This is another very simple evaluation method that aims to monitor the progress of each employee in achieving the goals that are set for him and which, of course, contribute to achieving the company’s global goals. In an objective-centered assessment, the employer and employee must agree on the individual objectives set.


Carrying out performance appraisals also reveals a number of details that can hamper their progress. These are the main mistakes when analyzing employee performance:

  • Misapplied feedback;
  • Lack of a properly qualified Human Resources team;
  • Fear when pointing out some problems;
  • Lack of memory (highlighting only recent events can be harmful to the analysis);
  • Not addressing the professional’s career plan.

Performance appraisal can, when properly used, be a powerful management tool. However, it should be used strategically and thoughtfully, if possible, by all elements of the organization.

If you work in the civil service, know that the Integrated System for Management and Performance Assessment in Public Administration (SIADAP), was established by Law No. workers.