Benefits of Performance Evaluation

Benefits of Performance Evaluation

Introduction

With organizations attaching greater emphasis to knowledge workers, it is necessary to understand how performance management practices facilitate achievement of managed performance (e.g. service delivery, service quality/products and cost reduction). Performance management is a means of getting better results from the whole organization or teams or individuals within it, by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. Companies are on track to become borderless communities and are increasingly virtual entities. Moreover, all studies show that today, people are considered the most important asset of organizations. In fact, the term "employee" is disappearing bit by bit: the business and not managing employees, but people. The company is transforming itself into a network of interconnected and increasingly less like a closed and stable group of employees.

Principles of Performance Appraisal

Performance appraisal should be based on a series of basic principles to guide its development. However, the basic principles of performance appraisal states that performance appraisal should be linked to development of people in the company. The standards of performance appraisal should be grounded in relevant information of the job and it should clearly define the objectives of performance appraisal system. The performance appraisal system requires commitment and active participation of all workers (Judge, 2006).

The role of the supervisor-evaluator judge should be considered the basis for advising improvements. However, this process often does not reach a satisfactory reason for their development often appear distancing, either by feelings of exploitation, indifference or underuse, conflicts, misunderstandings results, clash of interests or a few samples appreciation; errors in the use of techniques and tools, implementation issues and deficiencies in procedures and other standards.

Elements and Interventions in Performance Evaluation Practices

There are elements common to all approaches to performance appraisal which includes:

Performance Standards

The assessment requires performance standards, which are the parameters that allow more objective measures arising directly from the job analysis, which highlights specific performance standards by analyzing the work. Based on the responsibilities and tasks in the job description, the analyst can decide what elements are essential and should be evaluated in all cases. In the absence of this information, the standards may be developed from direct observations about the post or direct talks with the immediate supervisor.

Performance Measures

Rating systems are out of work and should be user friendly, reliable and qualified to be the essential elements that determine the performance. Performance observations can be carried out directly or indirectly. In general, indirect observations (written tests, simulations) are less reliable because they evaluate scenarios.

Objective measures of performance are those that are verifiable by others. Generally, objective measures tend to be quantitative in nature. They are based on aspects such as the number of units produced, the number of defective units, material savings rate, quantity sold in financial terms or any other aspect that can be expressed in a mathematically precise. Subjective measures are unverifiable qualifications which can be considered opinions of the evaluator. When subjective measures are also indirect, the precision drops ...