For example, a manufacturer might achieve its organizational objectives by requiring workers to produce a specific number of units per hour. For example, suppose a company wants its workers to be more productive. By implementing a performance management system, the company can divide workers into competent performers, under-performers and over-performers. Group membership is defined by objective criteria, such as items produced per hour, clarifying which workers need remedial training and which should receive bonuses.
Several types of performance evaluations exist, including degree feedback, management by objectives and ratings scale evaluations.
Regardless of the type of performance evaluation system used, managers perform evaluations to benefit employees and the employer. However, implementing performance evaluations offer advantages and disadvantages. Companies who recognize the disadvantages can make the necessary adjustments to receive the full benefits of implementing performance evaluations.
Career Development Performance evaluations allow managers to help employees with career development. Performing an unbiased evaluation can point out where employees are excelling and the areas needing improvement. After the evaluation is completed, managers can develop plans with specific tasks to help employees develop in their career and meet goals that benefit the company.
Evaluations can help employees increase their commitment to the firm and productivity. Employees that add value to the firm are considered first when better positions open up and employers decide to promote from within.
Work Achievement Recognition Performance evaluations give managers a chance to recognize employees who performed well during the evaluated year. Recognizing employees for their achievements builds their morale, and employees with high morale are more productive.
If monetary bonuses and raises are given based on performance evaluations, employees possess tangible evidence that shows the company values their hard work. Employees can list achievements received by an employer as awards on their resume if ever looking for another job.
Evaluator Bias A disadvantage of performance evaluations is that the managers evaluating employees may show bias to certain employees, which may happen intentionally or unintentionally. According to Jonathan A. Segal of Businessweek, one risk of using performance evaluations is that some managers unconsciously favor employees that possess similar characteristics as the manager.
Bias causes managers to focus more on the personality and style of the employee instead of the actual achievements.
This can result in good employees feeling slighted, which may cause tension in the workplace. Bias also affects the favorable employee because he may miss much-needed guidance to improve his performance. One-Sided Feedback Another disadvantage of performance evaluations is that the meeting can result in a one-sided conversation.
Although a manager may give an employee a chance to offer feedback, some managers already make up their mind about an employee and are not opened to two-sided dialogue. If the performance review is one-sided, employees may feel as if their opinions do no matter.
This may cause an employee to shut down and refuse to communicate with management in the future. Managers should listen to feedback presented by employees, and correct evaluations if employees make valid points.A good Performance Management Systems improves the performance of the company as employees are motivated, their work is aligned with company goals and there are fewer issues thanks to on-going feedback from the manager.
A major advantage of a performance management system is it allows managers to evaluate and compare employees in ways that are relevant to the overall organization’s goals.
management into existing business processes allows organizations governments implement performance management effectively, allowing them to transform their business processes and, ultimately, their cultures.
correct problems. This approach was used in. Jun 29, · Performance evaluations are important tools used by management to review and discuss employees' performances.
implementing performance evaluations offer advantages and disadvantages. Advantages of Performance Management System: 1. Interactions are often performance based: The popular concept of performance management is lengthy, unnecessarily complex and hectic; but in reality, performance management is essential for properly controlling a company.
form of performance management, but they struggle with adopting a formal, government-wide approach that allows the Overcoming Challenges to Implementing Performance Management By Michael J.
66 Government Finance Review | April 2) Overcoming elected Officials’.