What is the best way to judge employee performance? Tools and criteria used for successful evaluation.
Introduction
Employees are the driving force behind a company's success. As a
result, it should come as no surprise that employee performance on a daily
basis has a significant impact on a company's success or failure.
Simply said, employee performance refers to how a member of staff
performs their job obligations, completes essential tasks and acts in the
workplace.
How
to evaluate employee performance
Performance reviews can be intimidating for employees and managers
alike, but they are a necessary first step. Without conducting a thorough
evaluation of each employee's performance, you risk wasting valuable time and
effort implementing improvement plans that fall short of addressing the root
cause of the problem. Take time during this stage to ensure that you receive an
accurate and comprehensive assessment of the individual's performance, which will
serve as a solid foundation for developing improvement plans.
360-degree feedback
As the name implies, this method considers the feedback, opinions,
and assessments of a small group of people. This includes coworkers,
supervisors, and others with whom the employee interacts while at the company.
By looking beyond what the direct manager sees, you're given a more complete
picture of performance. Examine any similarities between the feedback from the
various areas, as this will help identify areas for improvement.
Objective-based performance
Managers and employees collaborate to develop performance objectives
and establish clear deadlines for completion. When employees participate in the
process of developing their objectives, they gain a better understanding of how
their personal objectives contribute to the larger company goals. This
increases awareness of what needs to be done and why it is necessary.
Additionally, this method aids in increasing employee engagement and
motivation while making it extremely simple for employers to define success and
failure.
Ranked performance on scales
Using numbered scales, such as 1 to 5 or 1 to 10, to rank an
employee's performance in specific areas is a traditional method. These scales
are frequently used because they are simple to understand for both employees
and managers, facilitate comparisons between team members, require minimal
administration, and can be customized to meet any business need. Managers or
human resources can define the ranking criteria which frequently include
behaviors, aptitude, or completed projects.
Conclusion
Selecting the appropriate performance appraisal method is more
critical than ever, as it reflects your attitude toward your employees and your
level of concern for employee morale. Once you've identified the optimal
performance review method for your organization, the next step is to implement
it effectively in order to close critical performance gaps and address pressing
issues affecting ROI.
References
Bowen, D. E. & Ostroff, C., 2004. Understanding HRM firm performance linkages: The role of the "strength" of the HRM
system.. Academy of Management Review: s.n.
Jayaram, J. & Ahire, S., 1998. Impact of operations Management
Practices on Quality and time-based Performance. National Journal of
Quality and Reliability Management, pp. 192-204.
For most staff positions, the job performance areas that should be included on a performance evaluation form are job knowledge and skills, quality of work, quantity of work, work habits and attitude. however 360 concept is most effective way of evaluations which involves both parties end to end with multiple way communications.
ReplyDeleteThank you for adding your valuable points to the subject.
DeletePerformance appraisal is a systematic assessment of an employee's current job capabilities as well as his potential for growth and development by his superiors. It may be informal or formal. so there are pros and cons. but through the effective employee performance appraisal, will guide to achieve the organization's ultimate goal. The article is good and well arranged. It will more attractive if you apply those theories in a practical context.
ReplyDeleteI'd like to add additional theories to this, but I've already drawn the reader's attention to the topic in a very comprehensive way. Thank you for your valauble points Umesh.
DeleteA good article Praveen. The performance appraisal boosts the morale of the employees and motivates them to work more towards achieving the goal of the organization.Performance appraisals are crucial for retaining employees. When the organizations keep the employees motivated and satisfied, the employee will automatically tend to stay in the company. Thankyou for sharing.
ReplyDeleteRukmali, thank you for your valuable comment.
DeleteA good discussion topic. Thank you for sharing.
ReplyDeleteJust to add more content to the article, according to SHRM (2021), goal setting, performance assessment, and a performance improvement process are the three main components of effective performance management systems. Employers can implement the performance management process in a variety of ways, but a successful system will include the three fundamental parts in some manner. Also, just to highlight that suppose top management does not communicate to managers and supervisors that evaluating employee performance is beneficial for their effort. In that case, they are more likely to either fail to dedicate the time or fill out the forms without engaging in the critical talks with their employees.
Thank you very much for your valuble feedback Fayaz.
DeleteThe following are some general measures of employee performance:
ReplyDeleteExecution quality of work Creativity level Consistent progress
Customer input leads to increased sales revenue.
Ability to accept ownership and be responsive to comments
The percentage of tasks that are performed on time.
Being on schedule and within budget
Thank you very much for your valuble feedback Nadeeshan.
DeleteManagers can grade employees' work as solid, above-average, or below-average based on how they performed in the previous period. When it comes to unsatisfactory performance, it is up to the manager to decide what the limit is. You also mentioned several tools and criteria as examples of these measures.
ReplyDeleteThank you very much for your valuble feedback Nishantha.
DeleteEvaluating employee performance is crucial job and sensitive subject . Both qualitative and constitutive parameters should be establish in more of a independent way . In addition to that evaluation process should be self explanatory and evaluator should be able to justify the process . great article Praveen .
ReplyDeleteThank you very much for your valuble feedback Tharindu.
DeletePraveen, employee performance evaluation process is the best factor to motivate employees and this will inspire and improve the work quality of them. This also a tool for employers to understand employee preforming level and how it effect overall performance. Finding best employees and rewarding on their best work will positively impact on employee engagement and organization goal achievement.
ReplyDeleteThank you very much for your valuble feedback Sunith
DeleteHi Praveen, Performance management benefits both the employee and the employer. Highly committed employees devote their entire efforts to achieving the organization's goals and objectives. This instills a sense of accomplishment in the employees, which motivates them to perform at their best. Thus, the organization must foster employee commitment through the use of the most effective methods. To accomplish this, management must employ a variety of techniques to foster positive employee attitudes. These strategies help to boost employee engagement and job satisfaction. Motivated, engaged, and committed employees become an asset to the organization, boosting productivity and performance.
ReplyDeleteThank you very much for your valuble feedback Kanchana.
DeleteHi Praveen, Choosing the right performance appraisal method is more crucial than ever because it reflects what you think about your employees and how important the employee morale is to you. Once you have found the best performance review system for your needs, the next step is to eliminate critical performance gaps and implement them properly to address stress issues affecting. thanks for sharing.
ReplyDeleteThank you very much for your valuble feedback Thilina
DeletePM is a very important management tool in all organizations. A proper PM includes regular feedback and the separation of interaction between managers and team members, allowing managers at all levels to identify performance gaps and how to resolve them as quickly as possible and keep everyone motivated to improve employee engagement, productivity and profitability. Nice article.
ReplyDeleteThank you very much for your valuble feedback Jackson
DeleteReally Informative Praveen, as explained performance management is an extremely important tool for any organization it will give all of the stakeholders of the business a very comprehensive idea on the organizational performance whilst the proper monitoring & management would help to increase the organizational productivity in the long run.
ReplyDeleteThank you very much for your valuble feedback Jude
DeleteEmployee performance is the key tool used by employers to evaluate the employees performance over a period of time. Different employers use different evaluation methods that suits for the particular organization. The performance appraisal assists both the company and the employees to determine the performance. It is vital from the employee's side as it determines the Bonuses, Increments, Promotions and so on. It also influence job satisfaction and the need to excel more from the present performance. Thank You.
ReplyDeleteThank you very much for your valuble feedback Arun.
Delete