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Implementing a Performance Evaluation System

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Job performance is one of the most important factor in both organizational psychology and human resource management, for the last decade there have been growing interest in the development of knowledge about performance measurements in organizations, researchers have covered a wide range of areas surrounding the subject, like identification of problems and different approaches to measure performance. In organizational environment we can perceive the performance evaluation process, as the practice of a mutual exchange between an employee and his manager.

That allows the employee to get an individual feedback about his job performance and productivity based on previous established objectives well and a clear understanding of what areas does he needs to improve. As well It allows the manager the chance to explain his expectations and give the employee valuable feedback. Performance review process are been used for give job promotion, feedback for the employee regarding how the supervisor viewed his performance, evaluations of relative individuals contribution in achieving organization goals, reward decisions, including merit increases, promotions, and other rewards. (Farris, 2011).

Organizations main responsibility is to create the necessary environment that will allow employees to feel motivated and satisfied about their jobs, this will positively influence employee performance. Thus, I considered that an implementation or review of the current performance review process should take place in my organization. Since currently there is no evaluation of performance implemented and there have been certain issues that have generated some discomfort among employees, issues like different hourly pay rates employees on the same organizational level and new employees with higher pay rates than others with more time in the organization, the need for implementation of a performance review process, suit for the needs and goals of the organization. Usages for performance appraisal have included equal employment opportunity considerations, promotions and salary increases. A performance review is an analysis of an employee’s performance and responsibilities.

The review is based on outcomes obtained, not on the employee’s personality. The review measures skills and accomplishments with uniformity and provides a way to help identify areas for performance enhancement and it should not be considered the supervisor’s only communication tool. Open lines of communication throughout different times help to make effective working relationships. As well periodic reviews help managers to gain an understanding of each employee skills. The goal of the review process is to recognize achievement, to evaluate job progress, and then if possible to design training for the further development of skills and strengths. A careful review will motivate employee interest and improve job performance (Neely, Gregory & Platts, 2005). Though it is a small organization, creating structure to the workplace is a necessary task. Receiving feedback about their abilities, capabilities and accomplishments motivates employees.

Likewise, many employees appreciate feedback that helps improve their weaknesses and by implementing a performance review process it will increase organizational performance. Employee performance review methods may vary depending on the organization size and goals. The performance measure may vary for employees on different departments based on their job responsibilities. But the basic standards for performance evaluation are, an employee’s output at work, his contribution to organizational growth and his overall behavior. (Springer, 2011). Some performance review methods are: Management by Objectives (MBO): is a system where the management and the employees discuss the organizational objectives, define the objectives and create a plan to achieve them.

The employee performance is evaluated after the set objectives are accomplished and the employee is compensated based on the previously stipulated. The value of this method is that an employee will feel motivated to achieve the objectives, as they are a part of the plan. (Rodgers & Hunter, 1992). 360-degree Appraisal: is a review method that uses feedback from an employee’s subordinates, superiors and colleagues to measure his performance at job. Feedback from external part related to the job, like customers can also be used in this performance appraisal method. The advantage of this method is that an employee is evaluated by different people, the negative side of this method is that factors like people experience with the employee and the personal relations have a direct impact on the employee score (Prowse & Prowse, 2009).

Behavioral Rating: Behaviorally anchored rating scales (BARS) is a method of performance review where employee behavior is measure during critical events or while performing tasks on the job. All the results gathered from employee behavior on the job, is later transformed into performance scores. (Tziner, Joanis & Murphy, 2000). Other Methods: Other performance review methods include trait-based systems, essay appraisal method, checklist method, comparison method, field review, etc. In an essay appraisal method, the evaluator writes an essay on the employee’s performance at different levels. The writing summarizes employee performance as also his strengths, weaknesses and training needs. In the checklist method, performance parameters are enlisted and employees are graded on a certain scale for each of the parameters.

There are other methods like comparison and ranking in which employee performance is gauged with reference to a certain optimum level of performance. (Oak, 2011). In order to develop a successful performance plan that will suit the organization needs and objectives as well as provide employees with the necessary motivation and job satisfaction, these are steps that can be used: First, Develop an evaluation form using the job description (duties and responsibilities with expected results) focusing on the main requirements of the job. The evaluation forms should be designed equally for all employees and consistent each time it is used within all job descriptions. Second, Identify performance measures (like excellent = 5, satisfactory = 4, below satisfaction = 3). Each measurement should have explanations of the meaning. This may require for a carefully drafted improvement plan with regular follow-up.

Third, Create a team of managers and supervisors to evaluate the process for any errors or possible legal issues. Carefully examine the evaluation form for each job description and set of job standards. A clear and understandable evaluation is critical for a good performance review system. Fourth, develop a testing job with a selected group of employees. It will help to determine if the measurements are correct and if good concrete performance data can be acquired with the plan. And Fifth, elaborate a clear company policy on the employee performance review system. It should contain who should conduct the review and any involvement of other employees. Each employee should be educated on the performance review system and understand the expectations of the evaluation.

Since confidentiality of employee records may be important, determine where the evaluations will be kept and who may have access to them. The performance review process can be successfully used for directing and motivating academic staff; there are a number of possible benefits of organizational performance management conducting formal performance reviews. There has been a general agreement in the belief that well designs performance evaluation lead to positive implications of organizations. Thus, performance reviews can benefit an organization’s effectiveness (Kulno, 2008).

Reference:
Farris, J. A., van Aken, E.,M., Letens, G., Chearksul, P., & Coleman, G. (2011). Improving the performance review process. International Journal of Operations & Production Management, 31(4), 376-404. doi:10.1108/01443571111119524

Kulno, Türk. (2008). Performance appraisal and the compensation of academic staff in the university of tartu. Baltic Journal of Management, 3(1), 40-54. doi:10.1108/17465260810844257

Neely, A., Gregory, M., & Platts, K. (2005). Performance measurement system design: A literature review and research agenda. International Journal of Operations & Production Management, 25(12), 1228-1263.

Prowse, P., & Prowse, J. (2009). The dilemma of performance appraisal. Measuring Business Excellence, 13(4), 69-77. doi:10.1108/13683040911006800

Rodgers, R., & Hunter, J. E. (1992). A foundation of good management practice in government: Management by objectives. Public Administration Review, 52(1), 27-27.

Springer, G. J. (2011). A study of job motivation, satisfaction, and performance among bank employees. Journal of Global Business Issues, 5(1), 29-42.

Oak, M. (2011, December 7). Employee Performance Appraisals. Buzzle. Retrieved April 2, 2012, from

Tziner, A., Joanis, C., & Murphy, K. R. (2000). A comparison of three methods of performance appraisal with regard to goal properties, goal perception, and ratee satisfaction. Group & Organization Management, 25(2), 175-190.

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