PERFORMANCE EVALUATION
Meaning and Definition of Performance Evaluation
Performance evaluation or performance appraisal is a tool which is used to evaluate the employees performance at the workplace . It generally includes qualitative and quantitative dimensions of employees ' job performance .
In this context , performance is defined as the level of work achievement . It generally represents how successfully an individual satisfies the job requirements .
Performance is constantly evaluated on the basis of outcomes . For example , a student applied great effort while preparing for exams but he received poor remarks . In such case , the effort applied is of high level but performance is comparatively low . Immediate supervisors , subordinates , customers being served , computers and even self - appraisal can evaluate the performance of an individual .
According to Mondy et al . , " Performance appraisal is a system of review and evaluation of an individual's ( or team's ) performance " .
According to Gomej - Mejia et al . , " Performance appraisal involves the identification , measurement , and management of human performance in organisations " .
According to DeNisi , " Performance appraisal is the system whereby an organisation assigns some score to indicate the level of performance of a target person or group " .
According to Flippo , " Performance appraisal is defined as a systematic , periodic and so far as humanly possible , an impartial rating of an employee's excellence in matters pertaining to his present job and to his potentialities for a better job " .
Procedure of Performance Evaluation
Performance evaluation includes various steps as shown in blow
1 ) Establish Performance Standards with Employees :
The process of performance appraisal starts with the formation of performance standards , according to organisational planned goals . These standards should be derived from the organisational strategic decisions , particularly from job analysis and job description . These standards should be easy to understand so that they can be easily comprehended and evaluated . Generally , these standards are expressed with confusing remarks that one understands little such as " a full day work or " a good job " . It is difficult to understand what is a full day work or a good job . A manager should have clear - cut picture in his mind about what he expects from his employees . Thus , would be able to convey these expectations to the employees in the future and evaluate their performance as per these standards .
2) Mutually Set Measurable Goals :
After the formation of standards , the most important thing is to convey the expectations so that an employee would not waste his time in presuming what is being expected from him . Many jobs have ambiguous performance standards and the problem occurs when these standards are formulated separately without any discussion with employees . Only transfer of information from manager to employee cannot be termed as communication because communication is a two - way process .
3)Measure Actual Performance :
Measurement of ac tual performance is the next phase of the appraisal process . To measure actual performance , it is necessary to collect information about it . Managers should be aware of what is to be measured and how . There are four common sources of information which are often exercised by the managers to evaluate actual performance . These sources are : personal observations , statistical reports , oral reports and written reports . Every source has its own benefits and limitations .However , a group of these sources will boost the number of input sources and prospects of collecting trustworthy information . What is being measured is more difficult to evaluate as compared to how it is being measured . Selecting wrong criteria may result in severe outcomes . What is to be measured indicates , what people have to achieve in order to excel in the organisation .
4 ) Compare Actual Performance with Standards :
Next step involves comparison of standards with actual performance . This step includes identification of fluctuations between the standard performance and the actual performance in order to proceed further .
5 ) Discuss the Appraisal with the Employee :
During this phase , the appraiser discusses the appraisal with the employee . For a manager , the most difficult job is to provide a precise appraisal to the employee . The review of performance appraisal affects employee's self - esteem and most importantly his performance Obviously , providing positive feedback is comparatively easier for both the appraiser and the employee than providing negative feedback . The appraisal may have both positive and negative outcomes .
6 ) If Necessary , Take Corrective Actions :
The last phase of appraisal process involves taking remedial actions wherever needed . These actions could be immediate or basic . Immediate actions mostly deal with the symptoms . These actions are frequently regarded as ' putting out fires ' as they deal with urgent problems . They rectify the problems immediately and smoothens the flow of work . On the other hand , basic actions deal with causes of the problem . These actions cover the reasons of fluctuation and also aim at controlling the differences permanently . They diagnose how and why the performance is fluctuated . In some cases , appraisers may give a reason that due to the shortage of time they did not take basic remedial actions . Hence , appraisers feel satisfied in putting out fires . Efficient managers know that spending a little time in evaluating the problem today , may save their time in solving the problem tomorrow .
