Performance Evaluation

Why Performance Evaluation is required

Employer Perspective:

Performance evaluation provide direction to support salary increment, Incentive assignments, Resource allocation, Trainings required, Promotions, Demotions, job role Transfers or location transfers and Terminations.

Employee Perspective:

Employee get to know their strengths and weaknesses, Improvement areas’ (job knowledge, behavioural, attitude etc.)

This also helps the leaders to know strength and weaknesses of subordinates so that they can identify, guide and overcome with low performance cause.

Measures of performance

Objective: - Objective measures work best when judgement based on number or where one can compare with another person example how many of objects created/produced, Sales target completion.

Advantage:

1)Measures are very clear to observe by both who is evaluating performance and the one who is evaluated.

2)Evaluation might be easy through process standardisation.

3)Motivate employee to produce more number of quality product.

4)Evaluation measures are known to one evaluated and it creates perception about employer to follow equity of treatment phenomenon.

Disadvantage:

1)Job often consist of various task and constraints to be performed so Objective evaluation would not be possible to follow.

2)(s)he may be tempted to focus on activity which is most related to performance evaluation measures that cause reduced focus on another job objectives.

Subjective: - Subjective measures are best in complex situation where one can’t compare with another directly. Judgement taken based on multi dimension characteristics of a person’s job.

Advantage:

1)Considered person’s job various characteristics like behavioural, work performance, punctuality etc.

2)Complex process of performance evaluation

3)Employer get to know trainings required for betterment of employee.

4)Assignment of incentives would be easy.

5)Ease of promotion related decisions.

Disadvantage:

1)Create perception of inequity.

Frequency of evaluation:

Frequency of evaluation is a major concern, It could be Monthly, Quarterly, Annually. Role of evaluation is to provide feedback to employee from result obtained. Frequent evaluation increase evaluation efficiency, accuracy. It also helps to employees to perform well so that they get positive feedback. It also related to Pay increment, promotions etc.