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Performance Evaluation

Performance EvaluationIntroduction
It is concerned with the evaluation of the individual and group performance of the employees in the organization. It involves the process of measuring an employees present actual performance with the estimated performance during a given period of time.

Performance Management
It is a total and integrated process comprising activities like goal-setting , training, evaluation and rewarding employees. It begins with setting performance standards followed by training and development and finally ends with performance appraisal and there by fixing rewards for employees in a fair and objective manner.

Objectives of performance evaluation

To identify the performance gap To provide the basis for promotion , transfer and termination To aid in designing training and development programmes To assist in wage and salary administration To help in increasing employee effectiveness To improve interpersonal relations To identify employee grievances

Uses of Performance evaluation

Human Resource Planning Recruitment and Selection Employee Training and Development Compensation Decisions Career Planning and Development Grievance and Discipline issues Feedback

Criteria for performance appraisal

Individual Traits Behavioural Characteristics Goal Accomplishment Scope for improvement Competencies

Process of performance Evaluation

Setting the performance evaluation goals

Establishing the performance criteria

Actual evaluation of employee performance

Post-evaluation interview with employees

First step in performance evaluation The goals are set jointly by both superiors and employees It ensures that every employee is aware of what is expected of him and how the achievement of this goal contributes to overall success. Organization should select the important and realistically achievable goals . Stephen Williams specified 3 types of objectives Key result area objective contributing to achievement of business goals of the unit Performance standards objectives which contribute to the improvement in the performance of the individual job Performance development objectives which contribute to development of individual performance

Setting performance evaluation goals

Establishing the performance criteria

An organization should decide what characteristic of employees are to be evaluated The criteria should be job related ,specific and within the control of the employees There should be joint discussions between the superiors and the employees regarding criteria formulation Once formed it should be communicated to all

Employees performance is evaluated based on the predetermined criteria The evaluator and the employee review the latters job performance jointly and appraise it against established performance standards This assists in determining to what extent the employee have met the performance standards ,ascertaining the reasons for any deficiencies and preparing a plan to correct the

Actual evaluation of performance

Post-evaluation interview
The discussion between the superior and appraised employee to discuss the results of evaluation to find the reasons for their high or low level of achievement

Methods of Performance Evaluation

The rating scale method employees are rated on basis of prespecified factors. The ranking method each evaluated employee secures a place in a ranking order from topmost to worst for selected characteristics The paired comparison method two employees are of a group are considered as a unit and they are compared on some predetermined basis The forced distribution method

The forced choice method evaluator has to evaluate the employee with the help of a series of statements whose weights will be unknown to the evaluator The critical incident method behaviour in critical incidents The essay method evaluator has to describe the employees performance in short. The cost benefit method focuses on financial returns given by employee

The work standard method comparing actual performance and standard performance. The check-list method a series of statements on traits of employees will be given to the evaluator usually immediate supervisor answer will be in yes or no format The field review method evaluation done by someone other than the immediate supervisor The result based evaluation

360 degree performance appraisal

Bos s Peer s
Team member s



Custom er

Staf f

Halo effect Central tendency Lenient attitude Bias Recency effects Employee resistance

Issues in performance Evaluation