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Employee performance management

Jun 08, 2021

time management .jpgEmployee performance appraisal is a part of HR strategy. It enables the company to manage the overall performance of the organization and to track the individual contribution of employees to the achievement of the company's goals. On the one hand, it allows management to evaluate the company's performance by analyzing team and individual goal achievements; on the other hand, it is one of the tools that can be used to motivate and develop team members/employees.

There are different approaches to the performance appraisal process. Depending on the needs and goals of the organization, it is possible to apply one of these approaches directly or to create a hybrid. The following are some of the most commonly used methods:

360-degree appraisal: In this method, each employee may be appraised by multiple stakeholders who have different working relationships with him or her. These stakeholders may be direct supervisors, teammates, subordinates, customers or suppliers. It is also possible to include a self-assessment component. This method is quite time consuming but provides a very comprehensive and objective picture.

Evaluation by results - There are several variations and names for this method. The basic idea is that the company evaluates employees based on their results, which are expressed in numbers and should be consistent with the numerical goals of the company as a whole. This evaluation system helps the company create a performance-based culture and align various financial and/or non-financial incentive systems with the results achieved.

Evaluation based on job description - this method is very practical and simple. A well-written job description should accurately reflect the employee's duties and expectations. Accordingly, when an evaluation is based on an individual job description, the supervisor has the opportunity to provide feedback to the employee that is tailored to their functional role in the organization.

Team Appraisal - This approach is a relatively new concept in organizational performance management and focuses on identifying and evaluating team results (not just individuals). This approach promotes team spirit within the organization and enables the organization to achieve results by fostering teamwork and potential.

As mentioned earlier, a prerequisite for creating a successful appraisal system is understanding the needs and goals of the organization; only by knowing these two aspects it is possible to develop a very effective appraisal method.

Based on the experience of SavvY Consulting's Business Development team, we would like to share with you some important tips that will help you make this process useful and productive:

Base the system on the company's goals and desired culture - Depending on your strategy, discuss with the team what goal you want to achieve with the evaluation system in the company. What kind of culture do you want to reinforce with the appraisal process, or are there significant internal changes in the company's management process that can be improved through an appraisal system?

Involve the direct managers in the creation process - If you are a HR manager or the person responsible for creating the appraisal system, it is very important to involve the direct team leaders in the creation process as they know best the needs of the teams or individuals. This will help you develop the best method and employees will easily get used to it.

Be growth-oriented - the system you create must be growth-oriented. Such a mindset will increase employee motivation and engagement. It will also allow the company to identify the competencies and skills that need to be developed among employees in order for the company to have a competitive advantage in the marketplace.

Create an action plan based on the feedback/appraisal - ensure that all employees leave the evaluation process with a specific action plan. This helps build a mentor-mentee relationship between the supervisor and the subordinate employee and also reinforces clear expectations for team members.

Employee performance evaluation is one of the most important components of HR strategy. This process creates the necessary conditions to achieve the strategic goals of the company. There are several digital platforms (e.g., Time SavvY) that simplify the employee appraisal process and make it easy to track how team members allocate their time to various tasks. This simplifies the employee appraisal and feedback process and allows management to see if employees' daily tasks are aligned with the company's strategy and action plan.