Why Are Performance Reviews Used?
Most companies require an annual performance review. The human resources department sends out forms to managers to review their employees. Reviews typically take place towards the end of the year. The reviews make employees aware of the strengths and weaknesses in their work, and the steps necessary for improvement. Managers also use reviews to identify and establish employee goals and benchmarks against which their performance is measured.
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Features
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Performance reviews provide an overall assessment of an employee's work. Reviews help determine promotions, demotions, transfers, pay raises and bonuses, and sometimes termination.
Function
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Reviews are designed to foster open communication between a supervisor and his staff. Reviews should provide a frank, honest discussion of one's work during the past year, and setting of reasonable goals for the upcoming year. The reviews should reinforce good performance and offer guidance for improving poor performance. Performance reviews also help identify training and development needs.
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Benefits
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Reviews should be beneficial to the employee and person conducting the review. Managers often encourage people doing solid work to take on additional responsibilities, and poor performing staffers are told how and why they need to improve their performance. Employees should be honest when discussing any disagreements they have with their review because sometimes managers forget or omit important information.
Process
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The review process involves establishing, analyzing and documenting data on employee performance. The supervisor and employee first discuss the targets and goals to be achieved at the end of the appraisal period. After the goals are set, the manager should be constantly monitoring the employee's performance and take the necessary steps to insure the employee is working towards achieving his goals. The process should be ongoing so that the employee is not surprised when he receives his annual performance appraisal. The supervisor completes the review for the human resources department. The department reviews the information before giving it to senior management.
Types
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There are two types of performance reviews. Individual evaluations measure an employee's work. Multiple employee evaluations review the work of employees in a unit/group in comparison to one another.
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