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Employee Performance Review
What Are Your Objectives?




Employee performance review, also known as performance appraisal or employee appraisal, is a method by which the job performance of an employee is evaluated.

Performance is evaluated periodically in terms of quality, quantity, cost and time, among other things.  It is most often conducted by one's direct manager or "first-line" supervisor.

When a person's direct supervisor is not available, this task may fall on another individual in the employee's "chain of command" who has first-hand knowledge of the employee's job performance.

Generally, the goals of an employee performance review include:
  •  Give feedback on performance to employees.
  •  Identify employee training needs.
  •  Document criteria used to allocate organizational rewards.
  •  Form a basis for personnel decisions:
    • salary increases
    • promotions
    • disciplinary actions
    • etc.
  •  Provide the opportunity for organizational diagnosis and development.
  • Facilitate communication between employee and administrator.
  • Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

Some of the more popular techniques used for conducting an employee performance review include:

Management by objectives (MBO)
  • Probably the most widely used, the MBO is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are.
  • Objectives can be set in all domains of activities (production, services, sales, R&D, human resources, finance, information systems etc.).
  • The periodic employee performance review is then based on the objectives agreed to previously by the employer and manager.
  • Some objectives are collective, for a whole department or the whole company, while others can be individualized.
  • The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'

360 degree appraisal
  • In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multi-source feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle.
  • The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders.
  • It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.
  • The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development.
  • The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."

Trait Based Systems
  • Trait-based systems rely on factors such as integrity and conscientiousness and are also used by businesses today.
  • However there is growing literature on the subject which states the downside of this type of employee performance review methodology. Those opposed to this state:
    • Because trait based systems are by definition based on personality traits, they make it difficult for a manager to provide feedback that can cause positive change in employee performance.
    • Because trait based systems are vague, they are more easily influenced by office politics, causing them to be less reliable as a source of information on an employee's true performance. 

Two other, although not as widely used, employee performance review techniques include Behavioral Observation Scale (BOS)and Behaviorally Anchored Rating Scale (BARS).


For further information on employee rights, such as the employee performance review section here, please be sure to check out the following areas:
Similar to the employee rights, employers also have responsibilities and rights.  To learn more about this, check out the employer liability insurance section.

And don't forget to check out the various employment background screening sections, especially if you are interested in federal government jobs.




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