Performance Evaluation Process
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Evaluation Standards
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The principles by which employees will be evaluated should be definite, comprehensible, tangible and measurable. Managers also must decide whether they will follow individual or multiple-person appraisal standards. In the former case, each employee's performance is studied independently, while the latter compares the performance of all employees in the team to one another.
Communication
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The established standards should be communicated to all employees of the organization. When the employees are made aware of the standards, they know what is expected of them and are better able to deliver.
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Reviewing Performance
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At the beginning of the year, managers should let employees know what is expected of them, and at the end of the year, the appraisal system measures the strengths and weaknesses of performance of the employees relative to the standards. Any deviations from the targeted performance are studied, and the benefits and losses incurred by the organization because of these deviations are analyzed.
Decision Making
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The results are communicated to management as well as to the employees, and the above-average performances typically are rewarded and the below-average ones are reprimanded or given support for improvement. The evaluations form the base points for decisions regarding promotions, demotions, pay hikes, transfers, terminations and training. Performance appraisals should be conducted in a positive manner and conducted on a regular basis to be beneficial to the company and the employees.
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