Employee Assessment

A performance review system is an approach to assessing and encouraging positive job performance. It is a tool for development, but it also provides the basis for the company to give raises and promotions or take corrective actions. There are various evaluation methods, including rating scales, essays, checklists, critical incident appraisals, work standards approach, and ranking methods. With the management by objectives (MBO) approach, performance is measured against the goals set by the manager and employee. A narrative is included with the behaviorally anchored rating scale (BARS) approach for each rating. This text addresses how to design an effective performance appraisal system.

Completing and Conducting the Appraisal

Key Takeaways

  • There are many best practices to consider when developing, implementing, and managing a performance appraisal system. First, the appraisal system must always tie into organization goals and the individual employee's job description.
  • Involvement of managers in the process can initiate buy-in.
  • Consider using self-evaluation tools as a method to create a two-way conversation between the manager and the employee.
  • Use a variety of rating methods to ensure a more unbiased result. For example, using peer evaluations in conjunction with self- and manager evaluations can create a clearer picture of employee performance.
  • Be aware of bias that can occur with performance appraisal systems.
  • Feedback should be given throughout the year, not just at performance appraisal time.
  • The goals of a performance evaluation system should tie into the organization's strategic plan, and the goals for employees should tie into the organization's strategic plan as well.
  • The process for managing performance evaluations should include goal setting, monitoring and coaching, and doing the formal evaluation process. The evaluation process should involve rewards or improvement plans where necessary. At the end of the evaluation period, new goals should be developed and the process started over again.
  • It is the HR professional's job to make sure managers and employees are trained on the performance evaluation process.
  • Standards should be developed for filling out employee evaluations, to ensure consistency and avoid bias.
  • The HR professional can assist managers by providing best practices information on how to discuss the evaluation with the employee.
  • Sometimes when performance is not up to standard, an improvement plan may be necessary. The improvement plan identifies the problem, the expected behavior, and the strategies needed to meet the expected behavior. The improvement plan should also address goals, time lines to meet the goals, and check-in dates for status on the goals.
  • It is the job of the HR professional to organize the process for the organization. HR should provide the manager with training, necessary documents (such as criteria and job descriptions), instructions, pay increase information, and coaching, should the manager have to develop improvement plans.
  • Some HR professionals organize the performance evaluation information in an Excel spreadsheet that lists all employees, job descriptions, and due dates for performance evaluations.
  • There are many types of software programs available to manage the process. This software can manage complicated 360 review processes, self-evaluations, and manager's evaluations. Some software can also provide timeline information and even send out email reminders.
  • The performance evaluation process should be constantly updated and managed to ensure the results contribute to the success of the organization.
  • A variety of ramifications can occur, from the employee earning a raise to possible dismissal, all of which should be determined ahead of the performance appraisal interview.