The most important things to remember when developing a performance evaluation system include the following:
- Make sure the evaluation has a direct relationship to the job. Consider developing specific criteria for each job, based on the individual job specifications and description.
- Involve managers when developing the process. Garner their feedback to obtain “buy-in” for the process.
- Consider involving the employee in the process by asking the employee to fill out a self-evaluation.
- Use a variety of methods to rate and evaluate the employee.
- Avoid bias by standardizing performance evaluations systems for each job.
- Give feedback on performance throughout the year, not just during performance review times.
- Make sure the goals of the performance evaluation tie into the organizational and department goals.
- Ensure the performance appraisal criteria also tie into the goals of the organization, for a strategic HRM approach.
- Review the evaluation for each job title often, since jobs and expectations change.
As you can see from Figure 11.7, the performance appraisal aspect is just one part of the total process. We can call this a performance review system. The first step of the process is goal setting with the employee. This could mean showing the employee his or her performance appraisal criteria or sitting down with the employee to develop MBOs. The basic idea here is that the employee should know the expectations and how his or her job performance will be rated.
Constant monitoring, feedback, and coaching are the next step. Ensuring the employee knows what he or she is doing well and is not doing well in a more informal manner will allow for a more productive employee.
Next, of course, is the formal performance evaluation process. Choosing the criteria, rating scale, and source of the evaluation are steps we have already discussed. The next step is to work with the employee to develop improvement plans (if necessary) and offer any rewards as a result of excellent performance. The process then begins again, setting new goals with the employee.