Implementing a Performance Evaluation System
Job performance is one of the most important factor in both organizational psychology and human resource management, for the last decade there have been growing interest in the development of knowledge about performance measurements in organizations, researchers have covered a wide range of areas surrounding the subject, like identification of problems and different approaches to measure performance. In organizational environment we can perceive the performance evaluation process, as the practice of a mutual exchange between an employee and his manager. That allows the employee to get an individual feedback about his job performance and ...view middle of the document...
Usages for performance appraisal have included equal employment opportunity considerations, promotions and salary increases. A performance review is an analysis of an employee's performance and responsibilities. The review is based on outcomes obtained, not on the employee's personality. The review measures skills and accomplishments with uniformity and provides a way to help identify areas for performance enhancement and it should not be considered the supervisor's only communication tool. Open lines of communication throughout different times help to make effective working relationships. As well periodic reviews help managers to gain an understanding of each employee skills. The goal of the review process is to recognize achievement, to evaluate job progress, and then if possible to design training for the further development of skills and strengths. A careful review will motivate employee interest and improve job performance (Neely, Gregory & Platts, 2005).
Though it is a small organization, creating structure to the workplace is a necessary task. Receiving feedback about their abilities, capabilities and accomplishments motivates employees. Likewise, many employees appreciate feedback that helps improve their weaknesses and by implementing a performance review process it will increase organizational performance. Employee performance review methods may vary depending on the organization size and goals. The performance measure may vary for employees on different departments based on their job responsibilities. But the basic standards for performance evaluation are, an employee's output at work, his contribution to organizational growth and his overall behavior. (Springer, 2011). Some performance review methods are:
Management by Objectives (MBO): is a system where the management and the employees discuss the organizational objectives, define the objectives and create a plan to achieve them. The employee performance is evaluated after the set objectives are accomplished and the employee is compensated based on the previously stipulated. The value of this method is that an employee will feel motivated to achieve the objectives, as they are a part of the plan. (Rodgers & Hunter, 1992).
360-degree Appraisal: is a review method that uses feedback from an employee's subordinates, superiors and colleagues to measure his performance at job. Feedback from external part related to the job, like customers can also be used in this performance appraisal method. The advantage of this method is that an employee is evaluated by different people, the negative side of this method is that factors like people experience with the employee and the personal relations have a direct impact on the employee score (Prowse & Prowse, 2009).
Behavioral Rating: Behaviorally anchored rating scales (BARS) is a method of performance review where employee behavior is measure during critical events or while performing tasks on the job. All the results gathered...