Select performance management solutions enable businesses, especially the Human Resources department, to asses and maximize their employees’ talents and performance. A company must know its resources and the possibilities to which it can improve its performance and the quality of its results. The quality and quantity of the function and accomplishment of its employees is a great factor in determining a company’s worth and future success.
Select performance management solutions are tools used to determine the quality and quantity of an employee or team’s performance. It can also be applied to the performance of the company as a whole. They measure the competence and initiative of employees, teams, and departments. It identifies skills, potentials, and also inadequacies.
A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. A PA is typically conducted annually. The interview could function as “providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems. Performance management systems are employed “to manage and align” all of an organization’s resources in order to achieve highest possible performance.
Some applications of PA are performance improvement, promotions, termination, test validation, and more. While there are many potential benefits of PA, there are also some potential drawbacks. For example, PA can help facilitate management-employee communication; however, PA may result in legal issues if not executed appropriately as many employees tend to be unsatisfied with the PA process.