Performance Evaluation Method
Performance evaluation is a method of appraising the behaviour of employees in work spot
, normally including both quantitative and qualitative aspects of job performance. It is a systematic way of evaluating potential of employees. This process is ideally for the improvement of the employee to do better and not to criticize him or humiliate him. It is more or less a mentoring way of improving his performance and making him aware of his handicaps and hence giving him a chance to improve himself and prepare himself to give the best results. Also performance evaluation decreases the cost of the organisation as labour turnover is reduced by improving the present employees and also for the employees it gives a secure environment.
Hence a performance evaluation is actually a performance review or development discussion between employer and employee. It has the good advantage as it bridges the gap between employer and employee and hence improves human relationships in an effective manner. Normally, a new person from a different background, say a fresher from college, or a person moved from other company will be at a loss to understand what the company expects from him and how employer values his performance. The employer also cannot openly express his views about the employee as it may lead to unhealthy competition, criticism and jealousy among the employees. Also employees will be frustrated due to internal politics of seniors who do not like newcomers or new ideas. The performance evaluation gives an assurance that real quality of performance is appreciated by Manager and the worker need not worry about internal politics or criticism.
How Performance Evaluation method is carried out?
Normally, performance evaluation is done by immediate supervisor or manager. A performance appraisal is a part of guiding and managing career development. Performance evaluation is an appraisal of employee's recent successes and failures, normally annual report is prepared. It is the process of obtaining, analyzing and recordin information about the relative worht of an employee, namely personal strengths and weaknesses and suitability for promotion or further training. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity alone.
Aims of Performance evaluation method
Generally, the aims are to give employees feedback, identify his training needs, allocating rewards for deserving persons, distinguishing employees into categories so as to give them salary increases, promotions, disciplinary actions, bonuses, etc. and provide an opportunity to improve performance for poor workers through counselling, coaching and development. Also it includes to facilitate communication between employee and administration and validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.
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Methods of performance evaluation:
A common approach is to use a numerical rating system which gives scores/marks to an individual against a number of objectives.
The popular methods used in the performace appraisal process include:
1. Management by objectives 2. 360 degree appraisal 3. Behavioural observation scale 4. Behaviourally anchored rating scales
Trait based systems rely on integrity and conscientiousness. But it is better to avoid assessing employee on such factors.
1. Because they are based on personality traits, they make it difficult for manager to provide feedback that can cause positive change.
2. Also trait based systems are vague, are influence by office politics. A manager can make biased decisions without having to back them up with specific behavioural information and hence leaves a company open to discrimination.
Limitations of Performance Evaluation:
The following are the limitations/drawbacks of performance evaluation periodically by the Manager/Supervisor.
1. The appraiser is also a human being having his own attitudes, opinions, who may not be ready to accept dynamic persons.
For eg, a conservative manager cannot accept an innovative manager's performance or vice versa though they are efficient workers. Hence Performance evaluation cannot be fully relied on. This can be overcome by getting appraissals from different managers every year and assessing on the whole the performance.
2, Biased reports can be submitted by the superior. In so many concerns, performance evaluation is used as a weapon by managers against their subordinates to become silent for the manager's shortcomings.
3. Enthusiastic workers may not yield results in first year but in the long run they will be more productive. Periodic evaluation do not give ground to this and a person may be denied promotion or valued poor and hence it may cause a frustration for long term plannings.
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