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Performance Evaluation

June 12, 2018
Performance Evaluation

Performance Evaluation is basically determining an individual’s performance, his job related-actions and outcomes with the organization in a particular position.

  • It is a method by which the performance of an employee is documented and evaluated.
  • This evaluation should be done specifically in order to inform and guide the employees in the performance of his/her duties.
  • It is also referred to as performance review, employee appraisal., etc.
  • It is a part of career development and it also consists of regular reviews of employee performance within the organization or workplace.

Employee Evaluation


It is a general, systematic process that rates or accesses the individual’s job performance and productivity.

To collect performance appraisal details the main methods include:

1) Objective production

2) Personal production

3) Judgment evaluation

Performance management systems are employed to “manage and align” all of an organization’s resources in order to achieve the highest possible performance and how performance is managed determines the success and failure of the organization.

HRAPP is an HRMS solution that offers easy employee management from hiring to retiring. We help businesses and organizations simplify the recruitment process and make payroll processes easy. Our proactive remote employee monitoring software helps businesses monitor remote employees by efficiently tracking the remote workforce's productivity.

Performance appraisal helps facilitate management to employee communication.


There is a number of potential benefits of organizational performance management conducting formal performance appraisal.

Other potential benefits include:

1)Encashment of employees focuses on promoting trust

Trust issues are distracting factors that consume psychological energy which lowers job performance and cause workers to lose sight of organizational goals.

2)Desired reinforcement performance and goal setting<

organizations find it efficient to match the individual worker’s goals and performance with organizational goals. Performance appraisal provides room for discussion in the collaboration of these individual and organizational goals.

3)Facilitation of communication

Basically feedback and management to employee communication serve as a guide in performance.

4)Performance improvement

When performance appraisal is well constructed, they can be taken as valuable tools for communicating with employees as to how their job performance stands with organizational expectations.

5)Determination of training needs

Performance appraisal is instrumental in identifying training needs for new employees and also help in the establishment and supervision of employee’s career goals.



Certain steps should be taken to improve the evaluations and reduce the errors occurring.

The steps are as follows:

1)Subordinate participation

In this, there is an employee to supervisor reciprocity in the discussion and if there is there are any discrepancies between self-ratings and supervisor ratings, which will thereby result in job satisfaction.

2)Providing feedback to raters

Subordinates should be evaluated with feedback, including ratings and information. This reduces errors.


Creating awareness about the people conducting appraisals within a group of workers, that will find a difference between the skills and abilities of employees working in the organ

There are types of appraisal methods to be followed for each department for an employee in the organization. Here there are a few types of appraisal methods:

1) 360-degree appraisal

This is involving other employees enabling them to fill up questionnaires detailing their experiences with a  specific employee.

360-Degree Appraisal

2)General performance appraisal

This involves communication between the manager and the employee. In the end, you’ll come to determine the pre-set goals and objectives.

3)Technological appraisal
  • This is also known as administrative appraisal.
  • This appraisal focuses on technical skills rather than anything else because employees have special tasks.
  • They are judged on the basis of their skills, the amount of work they completed, and a variety of other tasks.
4)Manager performance appraisal
  • Not only employees but managers also should go through the appraisal process.
  • Most of the manager's appraisal will consist of feedback from team members, usually anonymous.
5)Employee self-assessment

Most often the self-assessment is done comparing to an assessment done by the manager itself.

6)Project evaluation review
  • It is a great project management tool. Instead of waiting until the end of the year, the employee will be assessed at the end of each project.
  • This gives them tips for making the necessary corrections for their future projects.
7)Sales performance appraisal
  • It is an easy way of conducting the appraisal.
  • A salesperson is simply judged on his results versus his set goals and salesmen are often held to their financial goals more than any other section of the organization.


Performance Appraisal Method

1)Ranking Method
  • This ranking system requires the rater to rank his subordinates on overall performance.
  • Under this method, the ranking of an employee in the workgroup done against another employee.
  • It is also done by ranking a person on his job performance against another member of the competitive group.
  • The main advantage is that employees are ranking according to their performance levels and it the easiest way to rank the best and the worst employee.
2)Rating Scale
  • This scale consists of several numerical scales representing job-related performance such as output, attendance, attitude., etc.
  • The final numerical scores computed and a final decision is taken and the conclusion is derived.
  • Every type of job can evaluate using the rating scale method.
3)Checklist Method
  • Checklist of the statement of traits of employees in the form of yes or no based questions.
  • In this appraisal, the rater does the reporting and the HR department does the final evaluation.
  • Its main advantage is that it is very economical and it is ease of administration.
4)Critical Incidents Method
  • This is based on the critical behavior of the employees.
  • The evaluation is based on actual job behaviors. In this type of appraisal, feedback is easy to get, and the chances of subordinate improvements are high.
5)Assay Method
  • In this method, the employees will rate by the raters and this will do in detail which includes, strengths, weaknesses, capabilities, training., etc.
  • It is useful in filling information gaps about the employees that occur in a better structured.

Developing a process that enables managers to appraise performance through objective metrics is imperative so that the manager can define any underlying human resource issue versus operational issue.

It is possible to customize the process and this involves six steps which include:


1)Establish Performance Standards
  • These standards are necessary for each job position because it is used to fulfill the mission and vision of the company.
  • These established through job descriptions, employee handbooks., etc
  • Performance standards include everything from attendance to sale goals.
  • Businesses must set a company culture of expectation fulfillment that is consistent for everyone.
  • Giving some people a pass on meeting standards creates problems with team morale and potential legal issues when firing employees
2)Employee Communication
  • When performance standards established it's not enough, business leadership should communicate these standards properly to the employees.
  • There should be a specific onboarding process that summarizes the company's expectations.
  • Regular meetings reviewing the standards and expectations reiterates to employees that everybody must meet certain minimum requirements to retain employment or to be eligible for raises or promotion
3)Measure Employee Performance
  • Leaders track the employee's performance and review regularly.
  • Business leaders need to determine how often different performance standards are the review, based on how it affects business achievement.

For example, if a florist has a production line and one person does not keep up with the daily flower arrangement quotas, a manager needs to review that employee's performance sooner rather than later, before it negatively affects sales or morale among the others on the team, who must absorb the negligent employee's workload.

4)Compare To All Employee Metrics
  • Based on experience and industry data, employers set performance goals. Every employee and business is unique and different from each other.
  • Thereby, comparing one employee against another who performs the same task will give an employer an idea about whether or not the underlying issue is the employee or if it's a bigger issue of training or operations obstacles.
5)Employee Feedback
  • Performance appraisal should review with employees, in order to be effective.
  • Employees should sit down with each other, to review standard expectations and give feedback.
  • Use performance review meetings to not only give employees feedback but also to gather feedback from employees about personal performance, sales goals, professional goals, and feedback on company protocol.
6)Action Plan Development

Get employees to invest in growth by asking them to include personal expectations and goals as a part of the development plan.


The word performance appraisal might be helpful to consider the goals of an appraisal system and has meaning for most small business owners which includes:

1)To improve the company’s productivity

2)To identify the job requirement

3)To assess the performance of the employee

4)To make decisions regarding termination, termination, job changes., etc

All of these goals can be more easily realized if the employer makes an effort to establish the performance appraisal process as a dialogue in which the ultimate purpose is the betterment of all parties.


Performance Evaluation Goal


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