Employee performance evaluation is crucial to an organization. Learn more about such an evaluation process by referring to this easy guide. Let’s start now.
What is Employee Performance Evaluation?
Normally, the employee performance evaluation is the process of setting specific performance expectations for each employee as well as offering informal and formal feedback about employee performance related to those pre-set goals.
What are the Key Uses of Employee Performance Evaluation?
So far, many worldwide organizations from startups to international enterprise have integrated employee performance evaluation systems to support organizational training and career development, pay, promotions, and reductions-in-force, etc.
How to Undertake an Employee Performance Evaluation?
Usually, the process includes the following steps:
Step 1 – Setting Goals
Performance goals for individual employees should align with organizational goals. Additionally, you may choose one of the following common types of goals:
- Goals may be based on the achievement of a pre-decided set of tasks from the job description.
- Goals may be based on certain behaviors, which are expected to be done continuously.
- Goals may be according to the achievement of a project objective.
- Goals are challenging employees to improve their knowledge and skills.
What’s more, when setting your goals, you should notice the following key points:
- All goals should be easy to record, track, review, and update continuously.
- Managers and employees should be involved in the goal-setting process.
- Goals should be flexible to account for unexpected changes.
Step 2 – Undertaking Performance Review
The performance review is the process of examing individual employees’ development toward pre-decided goals. The most popular types of performance review methods including:
- Management by objectives (MBO) is a process through which goals are decided collaboratively for the whole company. Such a method is especially suitable nonroutine jobs (e.g. project managers etc.)
- Graphic rating scale (GRS) usually covers a number of factors like behaviors, for example, attendance, on which a supervisor rates an employee. The rating is normally based on a scale of gradations.
- 360-degree feedback assigns individual employees according to the feedback of their supervisor, colleagues, and subordinates. This method can also be considered as group reviews.
Here are some more important tips to help you build and carry out a better employee performance evaluation:
- Differentiation – Raters should consider differentiation to avoid offering everyone the same mark. Otherwise, poor training may be carried out for individual employees.
- All-round – Raters should rate individual employees depend on their continuously all-round (in all areas) performance annually or monthly.
- Support – The top management of an organization should monitor the overall employee performance evaluation process regularly in order to strengthen the importance of the evaluation process.
- Communication – Clarifying for key points during an evaluation process is always crucial. Efficiently communication can help to reinforce specific goals and to ensure consistency between managers and individual employees.
Create Your Own Employee Performance Evaluation Organizational Chart Now
The overall process is easy. Just open an easy org charting creator and go to Views Options>Performance Rating at the right-hand side of the user interface. Then you can edit the specific information in each employee shape.
In conclusion, we have discussed the basic definition and key uses of employee performance evaluation, and the key steps to carry out such an evaluation. Feel download this handy org chart creator and have a try right now!