A performance evaluation is a systematic effort by the management of an organisation to measure the execution of individual employment-related duties, levels of contribution, accomplishments, and achievements during a specified period. In this evaluation process, the employer typically analyses the capacity and skills required to perform duties. Progressive organisations are implementing a continuous approach to manage, motivate, and reward the good performance of their employees.
Job satisfaction is an extremely important factor in employee mental wellbeing, and a positive attitude from a worker is essential for engagement and productivity. For an employee, there is no better motivator than a reminder of past achievements and accomplishments. Realising the challenges confronted during previous periods and the hard work that went into achieving them can play a pivotal role in motivation, which leads to enhanced productivity.
A systematic process of assessment can help organisations determine how well employees fit into their businesses so they can align with the overall mission. Timely reviews allow for a two-way communication flow about the expectations of the employer and how far the employee has reached job goals. It is a tested and proven process that leads to a more enthusiastic and dedicated workforce and heightened individual and organisational growth.
There are several types of appraisals that companies apply to evaluate employees. The most common method in Sri Lanka is the traditional method, where a superior conducts an evaluation based on the employee’s general performances by analysing their day-to-day work throughout a specific period, ordinarily a year. Although the method can lead to bias, it has been used successfully over the years.
Collective appraisal
Another method is to make a collective appraisal, obtaining feedback from superiors, colleagues, supervisors, and the employee himself or herself. This is called “360-degree review” or multi-source feedback assessment. This method provides each employee with the opportunity to receive performance feedback from their peers and helps them positively understand their own job-related strengths and weaknesses.
Organisations also use self-appraisal methods where employees evaluate their own performance by revealing their work-related strengths and flows to identify areas for improvement by compiling a document. This is known in human resources management as an effective motivational drive.
Some organisations apply group performance efforts where the entire team, including managers, receives performance feedback. Team-based performance reviews are less biassed and more inclusive than individual performance reviews. Team performance appraisals assess whether the team met its goals, produced a quality product, and worked well together to achieve the common goal.
Regular performance has now become an important requirement to create an unbiased environment for rewarding employees which includes periodical increments, bonuses or ex-gratia payments, and incentives.
Performance appraisals help employees grow in their careers, particularly if they are looking to eventually advance with the company to a higher role. A regular evaluation can help employees create a plan for professional growth.
Performance evaluation can work in two ways. First, an evaluation can encourage an employee tremendously if it is positive. However, if the analysis is negative, such employees get an opportunity to improve. Either way, the employee becomes satisfied and may offer his or her best effort in future engagements. Also, continuous assessments help them grow professionally in their careers.
Performance
Providing constructive feedback to an employee is one of the primary purposes of performance evaluation. Identifying the merits and demerits of an employee can help develop weak areas and improve strong areas for better performance. This feedback can be invaluable in guiding employees towards professional growth and enhancing their job performance.
Providing feedback helps motivate employees to voluntarily improve job performance. Employees invariably work harder when their manager shares positive feedback. Most often, they understand that these assessments are the deciding factor for both career advancements and financial benefits such as regular increments and incentives.
Constant involvement of employees in the performance review process can lead to more engagement. This can create a work environment for employees to stay longer in the organisation, which can reduce employee turnover. When employees see how their actions affect the company overall, they are more likely to perform better. Frequent performance appraisals also show employees that their manager cares about them.
Employee performance assessments are frequently tied to organisational salary and reward systems. Employees who do very well may get wage raises, bonuses, or other types of acknowledgment for their efforts. Underperforming employees, on the other hand, may receive coaching and help to improve, or they may face sanctions if their performance concerns persist. This system of incentivising performers and improving non-performers encourages workers to do well in their jobs.
Communication
Regular performance evaluations nurture unrestricted and effective communication between employees and management. They provide an ideal platform for discussing innovative ideas, challenges, and job-related issues.
This two-way communication flow is very important to maintain high levels of employee engagement, as it ensures that employees feel heard and valued within the organisation. When employees believe that their opinions matter, they are more likely to remain committed to their work and the company.
Employee evaluation also helps improve organisational development. From an organisational perspective, employee performance evaluations can provide valuable insights into the overall sustainability and efficacy of the workforce. This information can help organisations identify areas for improvement, create training and development programs appropriately, and make clear and calculated decisions about talent management.
Building a thriving team environment is not just about hiring the right people to complete tasks but also about ensuring everyone works together effectively. Collaboration improves team morale, leading to better results. In this context, performance appraisals help managers and employees align their priorities and brainstorm together. Peer reviews help individuals see how their coworkers appreciate them.
Employee motivation and morale may be dramatically impacted by the employer’s recognition received during performance assessments. Employees are more likely to be driven to work at their best when they feel appreciated and acknowledged for their contributions. If, on the other hand, staff are experiencing performance challenges, getting direction and assistance during the review process may raise morale by demonstrating that the organisation is involved in their development.
Open process
A well-structured performance review process can help promote workplace fairness, balance, and impartiality. It guarantees that employees are assessed justly on job-related performance, abilities, and activities rather than personal biases. Employees are more likely to regard the system as impartial when the assessment process is open and objective, which may enhance morale. Fair performance assessments may also assist organisations in maintaining a favourable reputation.
The importance of employee performance evaluation cannot be overstated. This structured and systematic process enhances performance, aligns goals, and supports employee development. It promotes feedback and communication, motivates employees, and ensures fairness and equity in the workplace. It is a valuable tool for recognition and reward systems, documentation, and legal protection.
Performance evaluations also contribute to organisational development and create a more engaged, motivated, and effective workforce, ultimately contributing to their long-term success.
