Assess Employee Performance
In this lesson, you’re expected to learn about:
– managing employee performance
– the performance management cycle
– performance appraisal and feedback
Let’s now explore the last component of the Maintenance Phase – performance management.
What is Performance Management?
Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization.
More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing ongoing coaching and feedback to ensure that employees are meeting their objectives and career goals.
What does it involve?
Performance management aims to improve both organizational and individual employee performance by relating the organization’s performance objectives to the employee’s performance objectives.
Performance management is about setting objectives that help the organization achieve its overall objective.
Effective performance management looks at whether jobs are well designed and employees with the right skills are hired to undertake work.
Training as well as appropriate reward and recognition programs also increase the likelihood that performance in the whole organization is managed appropriately.
Managing an employee’s individual performance in the organization is referred to as performance appraisal, and it is a crucial part of performance management.
The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.
The cycle includes the following:
To begin the planning process, you and your employee review overall expectations, which includes collaborating on the development of performance objectives. Individual development goals are also updated. You then develop a performance plan that directs the employee’s efforts toward achieving specific results to support organizational excellence and employee success.
Goals and objectives are discussed throughout the year, during check-in meetings. This provides a framework to ensure employees achieve results through coaching and mutual feedback.
At the end of the performance period, you review the employee’s performance against expected objectives, as well as the means used and behaviors demonstrated in achieving those objectives. Together, you establish new objectives for the next performance period.
1) to provide feedback from management to employees regarding work performance.
2) to act as a measurement against which promotion and pay rises can be determined.
3) to help the organization monitor its employee selection.
4) to identify employees’ training and development needs.
5) to identify new objectives and put a plan in place to improve future performance.
Although many managers are uncomfortable with the idea of evaluating employees, effective performance appraisal is a crucial function of good management.
Some commonly used performance appraisal techniques are:
1) Management by Objectives
2) Essay Method
3) Critical Incident Method
4) Comparison Method
5) 360-Degree Feedback
This is a widely used technique by which the employer and employee discuss and agree on the objectives to be evaluated. The employee’s progress is reviewed periodically and, if needed, corrective measures are implemented.
A manager keeps a journal of each employee being appraised. Notes may be restricted to specific aspects of job performance, such as customer service, sales, and personal presentation.
This is similar to the essay method except that the manager records only exceptionally good or bad aspects of work performance.
Each employee is ranked according to a list of predetermined performance characteristics. This method often incorporates statistical values as a means of measurement.
For example, a rating scale of 1 to 5 may be employed (1 being poor and 5 being excellent). This scale may be used to assess knowledge, speed, accuracy, communication, interpersonal skills, oral and written skills, and administration techniques.
No matter which appraisal technique is used, the results should be discussed with the employee as soon as possible. The manager should explain both the positive and the negative aspects of an employee’s performance, encourage the employee to continue with his or her positive behavior, and let the employee know what to do to be recognized as a more productive employee in the future. Without this performance feedback, performance appraisals are a pointless exercise.
The most crucial aspect of any performance appraisal method is for the process to be completely objective. Performance based on the opinion of one person can often be subjective and open to manipulation.