Behavioral Aspects of

Performance Evaluation
 Purpose of Performance Evaluations
• Performance evaluation is a periodic assessment of
the operational effectiveness of an organization, its
subunits, and its personnel in light of its goals.
• To motivate employees to attain organizational goals
and comply with standards to produce desired
actions.
• To discourage dysfunctional behavior.
 Uses of Evaluation
• To manage operations of the organization
effectively and efficiently.
• To assist personnel decisions such as promotions,
transfers, and terminations.
• To identify specific training and development
needs.
• To provide feedback to employees about how
superiors perceive their performance.
• To provide a basis for reward allocations.
 Motivation to Promote Efficiency
• Motivation induces people to behave in
particular ways.
• Expectancy theory explain the relationships:
– The effort necessary to achieve the goal.
– Performance and reward.
– Reward satisfying personal goals.
 Types of Rewards
• Positive rewards:
– Bonus
– Promotion
– Praise
– Bigger office
• Negative rewards:
– More supervision
– Salary decrease
– Job losses
• Positive vs. Negative reinforcement
 Types of Rewards
• Intrinsic rewards:
– Job enrichment
– Increased responsibility
– Higher Participation in decision
• Extrinsic rewards:
– Salaries
– Profit sharing
– Holiday
– Pension plans
– Insurance
 Steps in Performance Evaluations
• Define activities and individuals responsible for it.
• Set performance criteria.
• Measure actual performance
• Compare actual performance with criteria.
• Determine operational and behavioral causes of
unfavorable variances.
• Reinforce desired behavior and prevent
undesired behavior.