Performance appraisal can be seen as a systematic and objective process of evaluating an individual employee’s job performance and productivity at specified intervals of time in relation to certain pre-established criteria and objectives of the organization.
Performance evaluation always includes the following – “1. Establishing work standards, 2. Assessing the actual performance of the employee relative to those standards, and 3. Providing feedback to the employee for the purpose of motivating him or her to eliminate performance deficiencies. ”
Performance appraisal also seeks to assess the behavior of the employee, achievements, and potential for future improvement, and his strengths and weaknesses. Although performance evaluation emphasizes the evaluation of the performance of the individual employee, this process may also apply to a group or team of employees.
In this article, we will discuss the advantages and disadvantages of employee performance evaluation.
Learn about the advantages and disadvantages of performance evaluation
Advantages and disadvantages of performance evaluation or merits and benefits
Performance appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards. It is designed to help employees understand their roles, objectives, expectations, and performance success. Performance evaluation assumes that performance standards are set and feedback is given to help employees eliminate performance deficiencies or continue to perform at par. It is an integrated process of setting goals, training and developing employees, assessing their performance, and rewarding them
1. Correct Placement:
Performance appraisal is beneficial for assessing an employee’s strengths and weaknesses. This enables the detection of areas/functions in which the employee is competent. Basically, this process is useful for identifying the true potential and interests of employees. Such analysis helps the HR department to deliver the right job according to the skills and competencies of the employees.
2. Support for performance improvement:
The manager/team head shares the evaluation results with the employees concerned. Such feedback is useful because it enables employees to focus on improving their strengths. Managers also suggest ideas and ways through which employees can overcome their weaknesses. Thus, this process helps in the personal and career development of employees.
3. Acts as a motivator:
This process involves recognizing and rewarding the employee’s efforts and performance. It boosts their morale and confidence. Furthermore, greater awareness of one’s true potential motivates employees to give their best performance. The organization acknowledges the efforts of employees by giving them high
Salaries, high responsibilities, certificates, and other monetary and non-monetary benefits. These benefits and recognition also motivate other employees to perform better in their jobs.
4. Planning and designing training programs:
Assessing the strengths and weaknesses of employees for the planning and design of training programs is useful for the HR department. Employees are provided with the right training at the right time to overcome their weaknesses and develop their strengths. The content and method of training can be modified according to human resource requirements.
5. Improves employee and management relationships:
Performance appraisal is also an opportunity for employees to discuss work-related problems with their superiors and find ways to solve them. Promotions and transfers are done based on the performance of employees. Fair promotion and relocation policies improve relations between employees and management. It also facilitates a good work environment that directly benefits the final output.
Performance appraisal is useful for taking inventory of the quality of available human resources in the organization. This information helps in future planning and development of human resources. According to the evaluation, HRD may plan to recruit new employees or to develop the quality of the existing workforce in the organization. This ensures that the organization needs the quality and quantity of manpower to perform its activities.
7. Improve employee communication with managers:
Performance appraisal is also an opportunity for employees to communicate their needs and expectations to superiors. In addition, employees can seek guidance to improve their managers’ performance and also for career progression. In short, the process gives a platform to improve employee communication.
Evaluation facilitates acceptance of employee’s efforts and achievements.
It motivates employees to learn and acquire new skills that assist them in personal and career development. This process increases the confidence of employees and encourages them to undertake challenging tasks. During the evaluation, managers also suggest ideas and ways to improve their attitude, behavior, mental capacity, emotional stability, and so on.
Performance evaluation is beneficial for identifying talented employees in the organization. This information helps the organization to prepare and develop competent employees. The organization acknowledges the efforts and achievement of employees through promotion, deputation, transfer, etc. Performance evaluation ensures that promotions and transfers are provided to employees only on the basis of merit and experience and not on the basis of seniority and favoritism.
Staff Performance Appraisal
Performance evaluation of personnel is the process of analyzing the performance of employees of a company over a set period of time. Aspects related to the technical domain of activities, relationships with superiors, associates, and clients, and business currency can be evaluated among others.
A successful method is able to align the objectives of the workers with the organization, as well as to foster interaction and mutual trust between different hierarchical levels, providing space for the exchange of responses. You can also identify problematic situations in the work environment, which can be corrected accordingly.
Benefits: An individual analysis will always be more equitable and focus on the right points to develop from the employee. At the discretion of this process, the evaluator and collaborator feel more willing to exchange information.
Problems: An appraiser is responsible for multiple team members. One problem is to find a place to evaluate them one by one on the agenda. If there are multiple evaluations, the evaluator may end up losing focus on the process.
Repeated processes occur throughout the year. In this way, each assessment will have a different evaluation date and meetings will be diluted on the agenda.
Divide your teams further. They can also be older, but appoint older or more accountable members to assist the managing director in the process. In this way, you make it more likely to be an evaluator.
Auto performance evaluation
Knowing yourself is one of the most important steps for personal and professional development. If you understand what works well and what can improve, then you are already halfway to being a better person and worker. We talk a lot about what self-performance evaluation is in another post we recommend.
Self-assessment of performance – self-knowledge
The danger here is to ensure that you are evaluating correctly. I especially like to combine self-assessment with a good personal strategic plan to be able to think about short, medium, and long term goals.
Benefits: Self-criticism is always a great practice when done honestly. This causes employees to create action plans to develop themselves. When a person recognizes a point to develop and propose a solution, he becomes responsible for it.
Problems: As previously stated, when practiced without honesty or depth, it will not help at all. Some contributors do not have the discipline to play a process that relies only on them or they simply will not be able to identify their points to develop.
Encourage self-evaluation as an informal company process. In this case, the employee will not be required to disclose the results, but the organization will have full support to develop its most important points.
Encourage self-evaluation after third party evaluation. In this way, the employee will have the opportunity to recognize their points of development as stated by them.
Performance Management Definition
Performance Management is “a philosophy whose value encourages employee development through a management style that provides frequent feedback and encourages teamwork.”
Its purpose is to increase the value of the organization through permanent improvement in the performance and development of the skills of its employees. This implies that the responsibilities of the position and the expected performance standards are defined.
Performance Management seeks the continuous improvement of the results of the organization, teams, and collaborators. When it is well implemented, the implementation of the implemented processes and their results are continuously evaluated to achieve the organization’s objectives.
All of this is done through:
Control of all employees of an organization
Elements for successful Performance Management
For a Performance Management system to be successful, it must have at least the following elements:
Internal tools and procedures that support the performance of the performance management system.
Employees must know and understand the instruments, objectives, and performance standards expected of them in each of the positions held by the organization.
Employees must have the necessary skills to be able to meet the performance expectations that the organization has for them. Otherwise, the company must offer them training and development activities that allow them to acquire or achieve these levels.
The organization must provide feedback on its performance to employees.
Employees must be rewarded in relation to their performance through a formal, standard, and clear policy.
Performance management has become in recent years as an alternative concept to the techniques traditionally used to compare results with those expected so that only work that had been previously planned should be evaluated. Currently, there is no control mechanism that allows correcting deviations to ensure that the execution of a plan corresponds to what was planned.
The definition and concept of performance management, when used well, transform companies. It is synonymous with management by objectives, it is the appreciation of employees and, most importantly, it is the link between compensation and performance. It is made up of a set of processes that aim to establish a shared understanding of business objectives, and also employee motivation, in order to increase business opportunities.
They are part of this process of strategic objectives, the definition of functions, the establishment of individual goals, the support of people and their follow-up, performance analysis, the training of various skills, remuneration according to performance, training, and development of people.
In the performance management process, it is more likely to be successful if it is considered as an integrated cycle that guarantees that the employee: achieves what the company expects of him, that shows his contribution in general, stakeholders or investors must understand how he will be evaluated performance, that is capable of accepting and facing the challenges that are proposed and that the company recognizes its importance. Therefore, adequate compensation for performance is established.
The tools used for performance management are applied through strategic planning, setting goals, indicators, priorities and company values, processes and people; assessments, personal development plan, and learning and development activities.
Its main characteristics are: focus on continuous improvement, evaluation, and management of the individual’s personal development. The biggest problem in determining employee performance appraisal occurs when there is prejudice or discrimination.
It is necessary for the evaluator to be aware of human nature in the world of work, the strategies that are identified as users must be legitimized and must be preserved and adopted and the measures that were built based on a wrong experience must be minimized.
The most successful performance management systems are not designed to detect and punish failure. They are for learning, to help the company identify what works and what needs to be improved by replacing and repairing what was not working.
Therefore, performance management is part of a broader process of business management, since it allows to review strategies, objectives, work processes, and human resources policies, among others, aimed at correcting deviations from the path of the company.
The failure or success of any business depends on the participation and motivation of its employees, so it is necessary for managers to guarantee their needs and expectations.
We design systems for our clients that allow us to plan, stimulate, and manage the contribution of people. Systems that achieve the connection between business goals and individual and team goals, and thus give meaning to work and individual contribution.
Achieving the commitment of people through performance management and its consequences in professional development and remuneration.
We offer our clients an investigation of the HR processes, their activities, and scope, in order to define opportunities for improvement, and growth needs, for each sub-process, analyzing indicators and Kips.
Performance Management Process
Contrary to what many workers fear, performance management requires more than just formal reports and annual ratings. Performance management is a process, it consists of stages to increase the performance of a worker or a team, always viewed from a positive way, in the form of opportunities and challenges, not as a criticism. Strategies are proposed to achieve objectives and goals to enhance job performance.