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The Value Of An Effective Performance Evaluation Process

Decent Essays

The Value of an Effective Performance Evaluation Process Douglas Moyer Polk State College MAN-4301 Human Resource Management Matina Wagner November 29, 2015 The Value of an Effective Performance Evaluation Process One of the most misunderstood tools used by managers in today’s businesses is the performance evaluation. At its basic level, the performance evaluation is a tool that allows an organization to evaluate an employee’s past performance compared with a set of performance standards (Dessler, 2015). These evaluations may be used to determine pay and compensation, promotions, terminations, training and development opportunities, and more (Mulvaney, McKinney, & Grodsky, 2012). Although the idea of providing feedback on job performance seems simple, many organizations struggle to develop a performance evaluation system that is fair to employees, easy for managers to use, and that measures key areas of performance. A study of 100 large U.S. corporations showed that all of the companies used some sort of performance evaluation system, but half of the corporations were considering making major changes to their system and six percent of the firms said they were considering eliminating the process altogether (Lawler, Benson, & McDermot, 2012). Given the importance of providing feedback about performance and the potential organizational benefits of an effective process, eliminating performance evaluations is not likely to result in success for employees or the

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