Employee Performance Evaluation
Performance evaluation
is essential for the effective management of human resources in an organization
and evaluates the staff who contribute to the development of individuals,
improving organizational performance, and business planning (Ahmed et al., 2013).
An
employee performance evaluation, also known as a “performance review,” is a
process used by organizations to give employees feedback on their job
performance and formally document that performance. Although companies
determine their evaluation cycles, most conduct employee performance
evaluations once per year (Posthuma and Campion, 2008).
Employee performance is related to job duties that are expected of
a worker and how perfectly those duties were accomplished. Many managers assess
employee performance on an annual or quarterly basis to help them identify
suggested areas for enhancement (Shaout and Yousif, 2014). Performance is
measured by using factors such as job knowledge, quality, the quantity of
output, initiative, leadership, administration, and dependability. These factors
must be pre-defined when setting objectives and evaluation should be limited to
past and implied performance (Fischer and Wermers, 2013).
Employee
performance assessment can be divided into two main categories as systematic
and non-systematic assessment. Within the non-systematic assessment, an
employee will be asset continuously by a superior throughout the work process
(Alain, 2013). Systematic assessment is a set organizational method carried
with a formal basis on employee presumed expectations, and actual performance (Pratt
and Lifflander, 2015). Many organizations do not use a systematic
way to evaluate the performance of their employees which often makes their
evaluation method vague and inefficient. So, it is very necessary to develop a
systematic approach for regular use to perform the performance evaluation
process at the planning stage (Ahmed et al., 2013).
The Concepts of Performance Evaluation
As defined by Verweire and Berghe (2004) organizational
performance is “the measurement and reporting system that quantifies the degree
to which managers achieve their objectives.” It should be noted that this
definition regards not only managers but also other employees that are
responsible to achieve the objectives according to the organizational
regulations and standards.
Mathis and Jackson (2011) state that an employee evaluation
has two general roles in organizations:
- Making administrative decisions about employees (compensation, promotion, dismissal, downsizing, layoffs).
- Identifying and planning employees’ growth opportunities (identify strengths or areas for growth, coach, develop career).
When developing an employee evaluation system, Grigoroudis and Zopounidis (2011) suggest that the management of the organization should take a series of important decisions:
- Who should design the evaluation process?
- Who should evaluate whom?
- Who should review evaluation results?
- How these results could be exploited?
The objective of Performance evaluation
As discussed by Tan and Falcone (2013) the objective of this performance assessment is to encourage employees to develop and enhance the overall efficiency of our organization by:
- Identify particular areas of accomplishment.
- Encourage to improve performance.
- Well-defined the goals and objectives of the organization, that they are often tailored to our employees’ specific areas of responsibility.
- Developing reciprocally established, employee-focused goals and objectives.
- Recognize areas of most excellent, effectiveness and extra improvement.
- Development interaction between employers and employee
Criteria for assessing the performance evaluation
Bernardin and Russell (1998) have recognized the following seven principles for evaluating the performance of an employee.
- Quality - The value of the commitment done by the individual, or team. This can incorporate the quality, interaction, and deliverables of task completion.
- Quantity – Work quantity handled by the Employee in the origination. This can be defined as undefined work.
- Timeliness – Assess Employee Have completed their objectives within a period defined
- · Interpersonal Impact - The quality and ways that a person uses to interact correctly with others. In the business world, the term refers to the ability of employees to work with others while performing their work.
- · Cost-Effectiveness - Cost-benefit analysis is a form of economic analysis that compares the relative costs and outcomes of different action plans. This gives financial value to the measurement of effectiveness.
- · Need for Supervision – How an employee can be worked without any interaction with a senior person and the amount of supervision needed for work.
- · Community Service – How employees will interact with helping others in the work environment. This can more volunteer work
An example from the company I work for:
Negative results of Performance Evaluation
As identified by Holpp (2011) Some employees may feel discouraged, impassioned, and unsympathetic about negative assessments, especially if they disagree with the content of the criticism and believe they are doing a proper job. In this case, employees may have no reason to change their future behavior and believe that the current level of performance is acceptable. This can lead to poor performance and cause a dissatisfied employee who may be less concerned about his future performance levels. If an individual shows a persistent negative attitude towards the company, then this type of employee has the potential to affect morale and the productivity of colleagues.
Conclusion
By doing
a proper employee performance evaluation, we can deliver the most distinguished
judgment of an employee’s work performance. Better to use multiple techniques
for evaluation purposes, it will provide a broader understanding of the areas
in which employees need to improve and the steps to support employee growth.
The employees will get motivated and experience the expression that organizations
carried out a fair evaluation for all the coworkers.
References
Alain, P. (2013) The Quick and Easy Performance Appraisal Phrase Book. 1st edn. USA: Career Press.
Ahmed, I., Sultana, I., Paul, S.K. and Azeem, A. (2013) Employee performance evaluation: A fuzzy approach. International Journal of Productivity and Performance Management, Vol. 62 No. 7, pp. 718-734.
Bernardin, J. and Russell, J. (1998) Human Resources Management: An Experiential Approach. 2nd edn. Boston: McGraw-Hill Education.
Fischer, B. and Wermers, R. (2013) Performance Evaluation and Attribution of Security Portfolios. 1st edn. USA: Academic Press. Available at: https://books.google.lk/books/about/Performance_Evaluation_and_Attribution_o.html?id=nnSmFa9mrvUC&printsec=frontcover&source=kp_read_button&hl=en&redir_esc=y#v=onepage&q&f=false (Accessed: 20 April 2022).
Grigoroudis, E. and Zopounidis, C. (2011) Developing an employee evaluation management system: the case of a healthcare organization.
Holpp, L. (2011) Win-Win Performance Appraisals: What to Do Before, During, and After the Review to Get the Best Results for Yourself and Your Employees: What to Do Before, During and After the Review. 1st edn. USA: McGraw-Hill.
Mathis, R.L. and Jackson, J. H. (2011) Human resource management, 13th edn. South-Western Cengage Learning.
Posthuma, R.A. and Campion, M.A. (2008) Twenty best practices for just employee performance reviews: employers can use a model to achieve performance reviews that increase employee satisfaction, reduce the likelihood of litigation and boost motivation. Compensation & Benefits Review, 40(1), pp.47-55.
Pratt, S. and Lifflander, J. (2015) Analyzing Complex Appraisals for Business Professionals. 1st edn. United States: McGraw-Hill.
Shaout, A. and Yousif, M.K. (2014) Performance evaluation–Methods and techniques survey. International Journal of Computer and Information Technology, 3(5), pp.966-979.
Tan, W. and Falcone, P. (2013) The Performance Appraisal Tool Kit. 1st edn. United States: AMACOM.
Verweire, K. and Van den Berghe, L. (2004) Integrated performance management: A Guide to Strategy Implementation. London: Sage Publications Ltd.
you successfully described the key method of Employee Performance Evaluation. The company I work in is using all the Criteria for assessing the performance evaluations to our annual incentives.
ReplyDeleteThank you Chathurika. A good performance management system works to improve overall organizational performance by managing the performance of teams and individuals to ensure the overall organizational aspirations and goals are achieved (Armstrong and Tylor, 2014).
DeleteKrishan, employee performance management is a very important HR aspect in modern management strategy. An effective performance management system will increase the motivation of employees and reward them appropriately. Motivated employees will contribute more to the success of the organization.
ReplyDeleteAgreed with your comment Amal. An efficient and good performance management system always strives to broadly improve corporate performance (Cardy and Leonard, 2014).
DeleteAccording to the ResearchGate, (n.d.) Performance management may be defined as a set of metrics and information used to enhance the level of optimal utilization of facilities and resources in order to achieve goals in the most cost-effective and efficient manner possible.
ReplyDeleteReference
ResearchGate. (n.d.). (PDF) DEFINITION OF PERFORMANCE MANAGEMENT. [online] Available at: https://www.researchgate.net/publication/347467745_DEFINITION_OF_PERFORMANCE_MANAGEMENT.
Agreed Upul. performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Aguinis, 2019).
DeleteMurphy (2020 , p. 2) stated that "Performance evaluation is a process in which one of more individuals in organisations (typically supervisors) observe and obtain information about the job performance and effectiveness of individual employees."
ReplyDeleteYes, Theekshana Agreed with your comment. A good performance evaluation system works to improve overall organizational performance by managing the performance of teams and individuals to ensure the overall organizational aspirations and goals are achieved (Armstrong and Tylor, 2014).
DeleteThe long-term success and competitiveness of any organization depends on its ability to evaluate its employees and their contribution in achieving the goals assigned to them, evaluations are used as a motivational tool to communicate performance expectations to employees and provide with feedback which identifies where an employee needs to improve. Therefore, evaluating employee performance is an important function of HRM (Fekete & Rozenberg, 2014).
ReplyDeleteFekete, M. and Rozenberg, I. (2014). The practical model of employee performance evaluation. Management, Knowledge & Learning, pp.141-149.
Armstrong (2014, p.391) define Performance Management as “A systematic process for improving individual, team and organizational performance” and “The continuous process of improving performance by setting individual teams and goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing progress, and developing the knowledge, skills and abilities of the people”
ReplyDeleteThe term “Performance management” is commonly used in the sector of HR since the early 1990s. It is now totally agreed that performance management is a natural process of management that focuses on managing individual to align with organizational goals by employee defined measures, skills, competency requirements, development plans, and results in delivery which helps to keep employees motivated. This will assist the employer to identify employee degradation, complications and take appropriate measure to overcome the situation(Armstrong and Baron, 2005).
Hi Krishan, Performance appraisal aims to recognize the current status of skills of the employees. A standard appraisal system consists of a collection of data from which information is gathered and then transferred into a real number which is called performance rate. The employees’ contribution to the organization depends on the evaluation of the relevant employee’s rating (Shaout & Yousif, 2014).
ReplyDelete