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Employee Performance Evaluation is a continuous administrative process established in many organizations to allow the management to precisely learn how well their employees cope with their jobs. Traditionally, employee performance evaluation procedures take place at the end of a reported period (annually or quarterly) and they usually utilize the following three major inputs:
- Objectively measured results and achievements delivered by an employee during this period;
- Supervisor’s review and subjective judgment on employee performance;
- Opinions of colleagues, customers and independent auditors;
At the end of a reported period, manager writes a special employee performance report, using a document form supplied by the HR department, which includes his brief review and opinion on how well certain employee had been working during the last period of time. This report may include rate of performance by certain KPIs, with specific examples and description of achievements, and also it can be supplemented with additional attachments, for example an employee self-review that will be compared against the manager’s review. While the procedure for performance evaluation can differ from organization to organization, the purposes are always the same:
- Provide an employee with feedback on performance;
- Identify gaps in employee competence as well as training needs;
- Recognize and reward excellent performers;
- Develop the criteria to assign rewards;
- Discover and formulate performance problems;
- Find a way to improve performance;
- Ground salary increases, bonuses, promotions or other organizational responses;
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