- Receiving feedback results in 8.9% greater profitability. (Source: LinkedIn)
- 63% of Gen Z wants to get performance feedback throughout the year.
WHAT IS PERFORMATION EVALUATION?
Performance means doing the given task. A way of evaluating employee’s performance is performance evaluation. That tests how effective the performance is. It evaluates if the work is good enough to get organizational goals.
To evaluate the work, a manager should first know what he wants. He should know:
- Expectations from the job
- To monitor employees
- To compare expectation and reality
- To provide feedback
- To motivate employees
- Required steps to meet the expectation
Performance evaluation is important for every company. It gives records about the past. That also tells what to do in the present and future. It makes the work easier for managers.
It is helpful for employees as well as the company. That is a bit hard to conduct. But the hard work is worthwhile.
Performance evaluation does a lot. It measures progress. It gives insights on further goals. An effective performance evaluation has certain characteristics. Some of them are:
Explaining the purpose
Employees need to know the reason for their work. If they know the purpose, they can work accordingly. So, to explain the purpose of the work is vital.
Describing the process
Performance evaluation is systematic. Telling the steps can be helpful.
Brief job expectations
Tell the employees about the expectations. Then they can work to match them.
Review job skills
After doing the task, review it. Talk about the gaps. Provide feedback.
This encourages the employees. The work gets better.
Performance evaluation tests the efficiency of work. It is done to develop the work. Some overall objectives are:
- To create healthy competition for promotions
- To know the satisfaction of employees
- To know the needs of employees
- To provide trainings for employees
- To decide on salaries
- To improve communication
- To know the effectiveness of programs
- To tell the employees about their level of work
STEPS OF PERFORMANCE EVALUATION
Performance evaluation is systematic. It works in order. Different people follow different processes. Some important steps are:
Job analysis is the first step. Describe the job. Explain the roles of the employees. This clears confusion. Then, employees can work accordingly.
Establish performance standards
Set performance standards. Create criteria for successful work. The standards should be measurable. It helps to measure the actual performance. Then, you can compare it.
Communicate the standards
Explain the standards to the employees. Employees can know their roles better. Take feedbacks. Make necessary changes.
Determine the actual performance
Monitor the employees. Select proper methods. Go through their work. See the level of hard work. Avoid bias.
Compare actual work with expectations
See if the performance meets the standards. Check if the goals are fulfilled. Analyze the results. Take necessary actions.
Discuss the results
Tell the employees about their work. Discuss the weak spots. Find the problems. Come up with solutions.
Make required decisions
Decisions can vary. Either improve or quit. Arrange trainings. Change selection process.
USES OF PERFORMANCE EVALUATION
Performance evaluation is very crucial. It is used by almost every top company. 24% of workers would leave their jobs due to low-performance feedback.
It has many uses. Some of them are:
The first use of performance evaluation is to improve the work. The feedback helps the employees. They can correct their mistakes. The work becomes effective.
Performance evaluation tells who worked the most. Then a manager can decide about the pay raise. This encourages employees to work harder.
It is used to decide placements. Transfers and promotions are rewards. So a manager should be careful while giving it.
Trainings and developments
Performance evaluation tells about poor work. Conduct trainings for it. Evaluation also tells about good work. Develop that skill.
Performance evaluation tells what a person is good at. From this, you can choose a career path.
BENEFITS OF PERFORMANCE EVALUATION
- Performance evaluation gives an idea of the work done. It tells about the strengths. It mentions the weakness. From this, people can work on it. Then the effectiveness grows.
- Gives new insights. Managers can adopt new things. This makes the environment fruitful.
- It reduces misunderstandings. It provides details on work. Managers and employees can work accordingly. The conflicts disappear.
- Performance evaluation provides records of work. Employees won’t be able to argue on pay raise. If the performance is good, the reward is there. That makes the process easy.
- Performance evaluation tells employees about their work. Employees can know in what position they are. They can know their level.
- It helps in making decisions. Managers can know the need for training. He can also know the problems. This can help a company grow.
Every concept has pros and cons. Performance evaluation has many benefits. But there are some cons too. Some of the limitations are:
- A lengthy process. It takes a lot of time.
- Plays roles in decision makings. Decisions include the promotion and pay raise. This can
- It create negative competition. That can degrade the relationship among employees.
- Takes a lot of time. Sometimes That does not turn out well. Then a lot of time is wasted.
- It gives feedbacks. Sometimes, negative feedbacks disturb the vibe. The working environment is affected.
- It involves everyone. It includes all managers and employees. So the process is stressful. It creates chaos.
Performance evaluation is universal. It is applied formally or informally. Companies need to know the performance status. Then only they can make proper decisions.
So that is a must and required in every company. There is no second thought in this.