Performance Evaluation Policy and Procedures

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When managing employees, you must administer regular feedback on their performance to maintain morale and efficiency in the workplace. Having a policy in place that outlines your evaluation procedures gives the employee performance review system an important place in your company's mission. Managers will be more likely to follow through with their regular appraisals when the tools they need are in writing.

Purpose

  • Employee evaluations are written and signed documents detailing the employee's level of performance of the job duties. As soon as you hire your employees, you should give them written details of their job duties and expectations. These outline the required tasks employees need to perform and the criteria their evaluations are based on. If you have an above standard worker, you can use the evaluation to support a pay raise. If you rate someone less than satisfactory, then you will have to write a development plan, which tells the employee how you will help to improve performance up to standard. These documents become a permanent part of an employee's official personnel file.

Types

  • Deciding on the type of employee performance evaluation to use depends on the goals of your organization and what works best with your staff. Rating an employee against the standards of the job is a type of review that reflects the competency in completing work duties. Ranking employees from most to least effective in comparison to each other is another system that helps you retain the best performers and identifies those that need the most help. A type of appraisal, known as 360 degree feedback, allows other managers, co-workers, customers and various professional contacts to anonymously rate the employee so that you can incorporate their assessments on the employee's review. Meanwhile, graphic rating scales assign a number to each level of performance. All of the ratings are added up at the end to determine how well the employee is doing.

Policy

  • You should clearly write out the employee appraisal policy and regularly enforce it. Having a policy in place does not help your organization reach it's goals if you fail to utilize it. The policy explains what an employee performance appraisal procedure is and why it's important to productivity. It dictates the time frame for reviews, such as every three, six or 12 months. It also instructs management on how to perform a job analysis to determine the vital and ancillary tasks. It also describes how to write and administer appraisals to your staff and what to do with a less than satisfactory employee.

Procedure

  • Before giving an employee the performance plan, it's vital that you perform a job analysis to accurately reflect the duties that the employee should be performing. Once that is in place, give the written expectations to your employee and ask for feedback. Have the employee sign the form and place it in the official employee's file. During the rating period, document instances of outstanding and poor behavior. When it is almost time to give the employee a review, compile all of the information that you have and start forming your appraisal early to ensure that you administer it on time. Give rewards to those employees who are consistently top performers. Offer assistance to those who need improvement.

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