Performance evaluation is a formal and creative method to measure an employee’s work and results based on their job tasks. Its goal is to improve the way a team or an organisation functions, to accomplish higher levels of customer gratification. Performance evaluation is also known to assist an employee to apprehend where they stand as compared to their colleagues in the organisation. Himanshu Arvind Kapadia, a business consultant at Jali partners Ltd, says performance evaluations are pioneer and important to every organisation; however, their effectiveness depends on how they are conducted. Though the intention is to empower employees, it can drive them away from the organisation, if not well conducted. He carries on that performance evaluation usually, is a method where employees’ work and performance compares with the organisation’s pre-set standards and uses the results to provide feedback to the employees to show where improvements are needed and why. “Though performance evaluation is important to every organisation, it is always a challenging task for management to select suitable methods from different options available,” he states. He says that using only one performance evaluation method might help an organisation in gaining one-sided information, while using a combination of multiple methods may help in obtaining insights from various perspectives, which will be instrumental in forming an unbiased and performance-centric decision. Kapadia stresses that some of these methods are self-evaluation, 360-degree employee evaluation, graphic rating scale, development checklist and demanding events checklists. Benefits The business consultant notes that performance evaluation is not just about dealing with poor performers. It is a process that begins with getting the right people, setting the right employee expectations, coaching employees to deliver efficient, high-quality service and dealing with under-performance in a proportionate and appropriate manner. He says, performance evaluation assists to enhance employee performance. For instance, supervisors usually point out insufficiencies in employees’ performances and share either in review meetings or communicate individually. Kapadia adds that with evaluation, the supervisor will also suggest ways of overcoming their deficits. For example, the evaluation process must be unbiased and equally viewed that it can stimulate for development of the careers of every employee. “Promotion and transfer should be offered on the basis of performance and not on seniority or any other factors including nepotism. This is not possible unless implementation of the correct performance evaluation method,” he states. According to Kapadia, the methods also help to recognise talented employees and make sure the right person is placed at the right position. For him, the outcome of the evaluation gives a clear view through which enhancement in salary and other fringe benefits can be worked out. The calculation of bonus, extra compensation, allowances, and requisites usually depend on the performance rating given by evaluation method. He adds that through the performance evaluation, the superiors can comprehend the strengths and weaknesses of their subordinates which also help to design training and development program, which eventually help employees perform better. The content and method of training vary according to the requirement of employees. Kapadia notes that performance evaluation improves relationships within the organisation. This is because employees get an opportunity to talk freely to management about the outcome and how to improve performance. This will help to resolve any disputes and grievances between employees and management. He also notes that there will also be integration with vision. This, at all times, an employee knows management expectations of them. Evaluation is the best way to communicate to employees about organisation’s goals and vision in the long term. The business expert also carries on that the mission of implementing any evaluation method is to boost employees and to let them know that the management is always keen to support and improve performance. This builds employees’ morale and leads to better performance. He also says that performance evaluation is a powerful tool to establish an organisational culture where each employee acts for the broad strategic vision of the organisation.
