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Employee performance evaluation system

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Employee performance evaluation system

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									Employee performance evaluation system




If you want to get a room full of management and leadership experts excited, ask them to
discuss the merits of employee evaluation systems. Some love evaluations and find them
to be very important, while others hate them, thinking they're a waste of time. Very few
have are without an opinion.

Employee evaluation systems are time consuming and tend to eat up resources. Before
starting, or continuing, an evaluation system, a leader should ask some important
questions. The answers to these questions will make a decision about whether to continue
with the system rather obvious.

1. Why do we need an evaluation system? What do we do with the reports and
information the system generates? Does the system really provide useful information on
employees and does the company act on that information? Many evaluations go in a file
and stay there. Some systems provide a lot of information, but are only used to decide if
the employee gets a raise that year. A good use of an evaluation system would be to allow
evaluation of employees for significant promotions. If that's the case, does the evaluation
address potential, or just current performance?

2. How does the system work? Is it time consuming or does it allow for accurate
assessment without adding significantly to a managers workload? This may seem a little
odd, but it makes sense. If the evaluation requires managers to sit down once a year and
produce a lengthy document, based only on their memory of the employee's performance
that year, it's probably not as accurate as a system that allows a manager to quickly
document important events as they happen.

3. Just what is it you're evaluating? Often employees are evaluated based on a manager's
idea of what that person should be doing. The employee may have no idea how the
evaluation is done or what they should be doing to earn better ratings. If the system
doesn't require the manager to spell out goals and provide regular feedback, then it is not
as effective as it could be. A couple of pitfalls in the area are the rating scale and the 360
degree feedback.

3a. Scales (1 -5, 1-10, etc) is quite common, but what do they tell a manager. Use of
scales is highly subjective and tends to result in quotas. Also, there is sometimes an
inclination to say something like, "If I give this person the highest rating, then what will
they have to work for?" That's bad enough, but think of what happens when one manager
takes that attitude but another one doesn't.

3b. A few years ago the idea of a 360 degree feedback gained some popularity. I'm over
simplifying here but essentially the idea is that everyone evaluates everyone. The idea of
everyone evaluating everyone might seem nice, but what's the benefit to the company? Is
it really worth the effort required? It's important to weigh the cost against the likelihood
that such a system will produce valid, or valuable, results. Unless the company is very
open and everyone feels complete safe, the chances of the 360 degree feedback system
working are pretty remote.

After carefully evaluating these three questions, take a look at your current evaluation
system, or the one you are considering implementing. Is the expected return really there
and is it worth the cost?


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performance appraisal.

								
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