Define the Performance Evaluation
Performance evaluations are regular conversations in which an employee and his supervisor assess career success and struggles and set goals together for the employee's future. Though performance reviews are not legally mandated---companies aren't required to have them---it's rare to run across a company without a performance evaluation system in place.
Other People Are Reading
-
History
-
Employees have always gotten some form of feedback from their employers about their work, but it wasn't until the 1940s that formal performance evaluations emerged. Their purpose was to quantify an employee's contribution at a company to create an established standard for salary increases and promotions. Though the early forms of performance review focused solely on salary, by the 1950s employers were using evaluations to motivate and develop employees, as well as to make decisions about wages and workload.
Function
-
A performance evaluation is designed to serve several purposes. First, it helps to establish and enforce job expectations. Performance evaluations also give managers and employees the opportunity to share feedback about an employee's experiences and performance. They are valuable sources for helping employees to chart a course to grow within a company, both to improve in places where they may need improvement and to develop in areas where they have been successful. Performance evaluations also still remain a tool for making decisions about salaries and job titles.
-
Features
-
A performance evaluation has several different components. An evaluation relies on both quantitative data---precise facts, such as sales figures or the number of new accounts taken on---as well as qualitative data, which includes more subjective factors such as teamwork or attitude. Some managers may seek input about an employee's performance from other sources, including co-workers, other departments and even customers. A performance evaluation also asks the employee to set goals to accomplish before his next evaluation, including new responsibilities, education or training or performance improvement.
Benefits
-
The chance to hear managerial feedback about work in performance evaluations has several benefits for employees. Performance appraisals increase employee satisfaction and employee morale, which can lead to reduced turnover. They can also be used to evaluate the success of a company's recruitment and retention strategies.
Considerations
-
An effective performance evaluation relies on a current, accurate job description. In companies where layoffs, turnover or other factors make jobs more fluid, it's especially important to keep an accurate description of what an employee is responsible for.
-
