PERFORMANCE AND EVALUATION

Employee Performance and Evaluation

Summary

Employee evaluation is used as a formal mechanism for assessing employees' performance and encouraging their growth and development. The purpose of a performance evaluation system must be to achieve optimum employee performance. It is possible by facilitating two-way communication between employees and their supervisors. The evaluation process should be more like a communication between employees and their supervisors rather than an evaluation. In order to assess the success of an evaluation process, the degree of participation by employees must be considered. When performed precisely, performance evaluation can accomplish two essential functions: employee development and promotional considerations. An ideal performance evaluation system is one which encourages employees' participation and provides employees with the opportunity of self-evaluation. After evaluating employees' performance, managers are responsible to manage it efficiently. When employees' actual performance is less that the expected performance, managers must provide them with proper coaching and training.

Table of Contents

Summaryi

Introduction1

Discussions2

Performance Evaluation2

The Ideal Performance Evaluation System2

Importance of Performance Evaluation3

Performance Evaluation Obstacles4

Impact of Performance Evaluation on Employees' Motivation4

Methods Used for Performance Evaluation5

Graphic Rating Scale6

Critical Incident Method6

Behaviourally Anchored Rating Scales (BARS)6

Management by Objectives (MBO)7

Effective Performance Evaluation System7

New Trends in Performance Evaluation and Management7

Effectiveness of Performance Evaluation8

Transparency8

Fairness8

Controllability9

Performance Management9

Performance Management System - Siemens10

Performance Appraisal and Feedbacks11

The 360 Degree Feedback11

Goals of Appraisal and Feedback Systems12

Improving Employee Performance13

Performance Related Pay14

Comparison of actual performance with the desired performance14

Organisational Performance Alignment15

Conclusion15

References17

Employee Performance and Evaluation

Introduction

Performance evaluation is one of the best ways to enhance employees' performance and get better business outcomes. Performance evaluation is a process which happens all the time in an organisation through formal and informal ways. The performance of each employee in every organisation is constantly being evaluated and appraised by the employee, peers, supervisors, and subordinates. However, for formal evaluation of employees' performance, performance evaluation methods are used.

The evaluation of employee performance has a significant impact on the overall success of an organisation. In order to evaluate the performance of employees, a formal and well-designed performance appraisal system is required.

Performance evaluation does not only increase the motivation of employees but also result in organisational effectiveness. With the help of adequate performance evaluation and appraisal systems, managers can increase the self-esteem of their employees.

The evaluation and management of employees' performance are all-encompassing processes. These processes involve a multitude of methods which are used to assess and reward employees' performance efficiently. The global competition has magnified the importance of efficacious performance evaluation and management systems. In the global business environment, one of the most important human resource challenges is to develop and implement an effective performance evaluation and management system (Millar, et al, 1995, pp. 1).

Discussions

Performance Evaluation

Performance evaluation is a reality in organisations of all sizes and types. The process of performance evaluation requires a significant amount of time. Performance evaluation is a continuous process. In order to gain a competitive advantage, it is significant to mentor and guide employees in such a manner that they can align themselves to their ever-changing job requirements. This flexibility enables employees to have a grasp ...