Performance evaluation is critical in the development use of an organization, for effective administrative decisions, organization maintenance, and documentation purpose. The main objective of employee performance review process is to reach the professional development of the organization as well as the organization development. The performance is evaluated against certain factors like job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. Performance measurement methods are evaluated to offer promotions, confirmations, training and development, compensation reviews, competency building, improve communication, evaluation of HR Programs and feedback & grievances.
Here are the main objectives of performance appraisal system:
- Goals should be achieved: Low performers are required to meet basic standards and high performers are required to maintain the growth levels. Employers who perform above average level are often ignored during appraisal process. So, company goals should be evaluated constantly to match with the competitive market landscape.
- Managers assessment: Managers are no exception from this process. When the team is achieving the goals then managers need focused attention from mentors to keep moving. Revamp your current assessment structure by adding leadership 360 reviews. These reviews are basically designed to measure inter-personal skills, customer satisfaction and team building skills.
- Select right evaluation tool: Chose a performance management platform suitable your organization needs and goals to evaluate your team performance.
Here are some traditional employment tests to evaluate employee performance:
- Management by Objectives: It enables to set performance standards, establish new goals and comparison of actual goals with achieved goals. As it is suitable to managerial positions, not applicable to all job positions.
- Assessment Centers: To measure interpersonal skills, communication skills, planning and organizing, and analytical skills. Various factors like assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, and sensitivity to feelings, administrative ability, creativity and mental alertness are assessed in assessment centers. These tests ensure that
- Biographical Data: To evaluate leadership, teamwork skills, specific job knowledge and specific skills, interpersonal skills, extra version, creativity.
- Personality Tests: To measure employee personal traits like extra version, conscientiousness, openness to new experiences, optimism, agreeableness, service orientation, stress tolerance, emotional stability, and initiative or proactively.
- Rating Scales: To evaluate the dependability, initiative, output, attendance, attitude etc.
- Checklist: Questionaire prepared in the form of YES or NO to measure the traits employee. These questions describe the behavior of the individual in assessment process.
- Forced Choice Method: The series of statements with YES or NO are assigned to the employees.
- Forced Distribution Method: This is a ranking methodology as it is required to allocate rankings to certain categories.
- Critical Incidents Method: Here the manager prepares the list of effective and ineffective behaviors of an employee.