Every year employees experience an evaluation of their past performance. Employees generally see these evaluations as having some direct effect on their work lives. They may result in increased pay, a promotion, or assistance in personal development areas for which the employee needs some training. As a result, any evaluation of employee’s work can create an emotionally charged event. Because the performance evaluation is not the simple process it once was, it is now more critical to perform one while simultaneously focusing on key activities of the job.
If we want to know how well the employees are doing, we’ve got to measure their performance-not necessarily an easy task. Many factors go into the performance evaluation process, such as why do we do them, who should benefit from the evaluation, what type of evaluation should be used, and what problems might be encountered. Performance management systems involve a number of activities. They are more than simply reviewing what an employee has done. These systems must fulfill several purposes.
PURPOSE OF PERFORMANCE MANAGEMENT SYSTEMS
Nearly three decades ago, performance evaluations were designed primarily to tell employees how they had done over a period of time and to let them know what pay raise them would be getting. This was the “feedback” mechanism in place. Although this may have served its purpose then, today there are additional factors that must be addressed. Specifically, performance evaluations should also address development and documentation concerns.
Performance appraisal must convey to employees how well they have performed on established goals. It’s also desirable to have these goals and performance measures mutually set between the employee and the supervisor. Without proper two-way feedback about one’s own effort and its effect on performance, we run the risk of decreasing an employee’s motivation....