Human Resource

management
topic- Performance evaluation
Presented by- Aditi
Sisodia
Anirudh Singhal
Presented to- Prof. Silky R Prasidha
Madan Sambhav Sharma
 WHAT IS PERFORMANCE EVALUATION?
Performance Evaluation is defined as a formal and productive procedure
to measure an employee's work and results based on their job
responsibilities.
CHARACTERISTICS OF
PERFORMANCE EVALUATION
•It should be based on activities over which
managers have control or influence.
•It should be measurable.

•It should be timely.

•It should be consistent in its application.

•When appropriate, the actual results should be

compared with the budgeted results, standards, or
past performance.
•The measurements must not favour the manager
over the goals of the entire organization. Often,
managers have the ability to make decisions that
favour their individual units but that may be
detrimental to the overall performance of the
organization.
Purpose of performance
evaluation
There are 2 primary purposes of performance evaluation-
evaluative and developmental.

The evaluative purpose is intended to inform people of their

performance standing. The collected performance data are
frequently used to reward high performance and to punish poor
performance. The developmental purpose is intended to identify
problems in employees performing the assigned task. The collected
performance data are used to provide necessary skill training or
professional development.
OBJECTIVES OF
PERFORMANCE
EVALUATION
While improving performance is certainly one goal to keep in
mind, the objectives of a performance appraisal go beyond that.

1. Help employees set goals

One of the most important objectives of a performance appraisal, after improving
performance, should be to help employees set goals for the coming year.
Employees need to know what you expect them to do and whether the goals are
geared toward customer service, operations, or professional development.
• Motivate high performing
employees
Performance appraisals are a great opportunity to let
employees know what they’re doing right and how they can do
more of it. The process itself will let you communicate to
employees what superior performance looks like, whether that’s
short resolution times for customer service calls or thinking fast
in a crisis.

• Counsel underperforming
employees
It’s not an ideal situation, but the performance appraisal process
also gives you an opportunity to counsel employees who aren’t
meeting company standards. Maybe an underperforming
employee hasn’t set goals, or maybe they need to better learn
their job or skills related to their job. If this is the case, you can
help them come up with an action plan to improve their
performance.
• Support for raises and
promotions
A lot of companies already tie performance appraisals to raises
and promotions, as pay is often in line with an employee’s
performance. When you take the time to measure how an
employee is doing and review whether they’ve met the goals set
for the previous period, it’s much easier to determine how much
you’ll boost their pay or if they’re ready to move to the next level
in your organization.

• Plan for new hires

If you’re conducting regular performance appraisals and
noticing a common theme, such as employees being
stretched too thin, this can help you build the case for
hiring additional employees. You can figure out which
departments are well staffed and which ones need more
talent to help get the work done.
STEPS FOR PERFORMANCE
EVALUATION
 The primary goals of a performance evaluation system are to provide an
equitable measurement of an employee’s contribution to the workforce, produce
accurate appraisal documentation to protect both the employee and employer,
and obtain a high level of quality and quantity in the work produced. To create a
performance evaluation system in your practice, follow these five steps:
1. Develop an evaluation form.
2. Identify performance measures.
3. Set guidelines for feedback.
4. Create disciplinary and termination procedures.
5. Set an evaluation schedule.

 It is also advisable to run the finished system by your attorney to identify any potential legal
problems that should be fixed.
 USES OF PERFORMANCE
EVALUATION
 tradionally, compensation, and performance feedback have been the most
prominent reasons organizations use performance appraisals.
 Feedback to employees. Performance appraisals provide feedback to employees about the quantity and quality of job
performance. Without this information, employees have little knowledge of how well they are doing their jobs and
how they might improve their work.
 Self-development. Performance appraisals can also serve as an aid to employee self-development. Individuals learn
about their strengths and weaknesses as seen by others and can initiate self-improvement programs (see discussion on
behavioral self-management programs).
 Reward systems. In addition, appraisals may form the basis of organizational reward systems—particularly merit-
based compensation plans.
 Personnel decisions. Performance appraisals serve personnel-related functions as well. In making personnel
decisions, such as those relating to promotions, transfers, and terminations, can be quite useful. Employers can make
choices based on information about individual talents and shortcomings. In addition, appraisal systems help
management evaluate the effectiveness of its selection and placement functions. If newly hired employees generally
perform poorly, managers should consider whether the right kind of people is being hired in the first place.
 Training and development. Finally, appraisals can help managers identify areas in which employees lack critical
skills for either immediate or future performance. In these situations, new or revised training programs can be
established to further develop the company’s human resources.
APPRAISAL PROCESS
Set Up Communicat
Performance Measurabl e About
Standards e Goals Performance

Discuss
Measure
Appraisal Corrective
Actual
With Actions
Performance
Employee

Feedback
 BENEFITS OF PERFORMANCE
EVALUATION

1.Creates career growth

2.Improves performance
3.Increases employee
engagement 4.Helps determine
training 5.Clarifies expectations
6.Allows for
conversation 7.Evaluates
DISADVANTAGE OF PERFORMANCE
EVALUATION
1. Prone To Biasness.
2. Contrast Error.
3. Generalization Tendency Error.
4. Severity Or Leniency.
5. Sampling Error.
6. Regency And Primary Errors.
Overall, appraisals are good only if the management
operating them stick with their standards otherwise it
will pointless.
Performance Evaluation’s Benefits For Employer
• Increases Employee Management : Regularly involving employees in the performance review process can lead to
more engagement and a desire to stay with a company long term.

• Helps Determine Training : Performance appraisals allow companies to see which employees need more training
and determine what areas to provide training in.

• Clarifies Expectations : During performance appraisals, managers can reiterate their expectations for employees.

• Addresses Areas For Improvement : When employers hold performance appraisals frequently, they can spot areas
that need improvement before they affect the company or become irreversible.

• Allows For Conversation : Performance appraisals create a structured, set time for managers to discuss how each
employee is doing overall and allows for a flow of discussion with no distractions.
Performance Evaluation’s Benefits For Employee
• Creates career growth: Performance appraisals help employees grow in their careers, particularly if they are looking
to eventually advance with the company to a higher role.

• Improves performance : Providing feedback helps motivate employees to do well. Employees can work harder when
their manager shares positive feedback.

• Increases employee engagement: Regularly involving employees in the performance review process can lead to
more engagement and a desire to stay with a company long term.

• Strengthens team bonds: Performance appraisals help managers and employees align their priorities and brainstorm
together.

• Guides current projects: Performance appraisals can give employees a chance to ask managers questions about
current projects they are working on and receive further guidance or direction in how to complete their tasks at work.
How To Prepare For Performance Evaluation

• Get Feedback: Ask your manager for feedback twice a month or monthly. This can be done during scheduled status
meetings. The information will help you to keep track of your goals.

• Record Accomplishments: Keeping a record of your major accomplishments and summarizing them on an annual
basis is also the perfect time to update your resume.

• Keep Manager Informed: Don’t assume your manager is aware of your performance status and accomplishments.
Without overdoing it, let your manager know when you’ve done something great.

• Give Input to Manager: Provide input to your manager, even if it is not requested during your annual review. Your
input during this meeting is a rare opportunity to mention your accomplishments to increase your chances for
advancement.