What is Performance Review & How it helps the Company

Shaun was working for a private company, but his manager identified that Shaun was not able to give satisfactory output.  Shaun was confronted many times by his manager related to his performance issue but was unable to identify the exact area for improvement. It was during his performance review, manager figured out that he might need training for his improvement. He put Shaun for a training program, and he noticed that Shaun was able to perform better than before.  Performance review can be a great strain at times, but the benefits are huge at longer periods. There are various stages of performance review.

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What is performance review?

Performance review is an important aspect between manager and their employees.  It is a process of analysing the work output of an employee.  The objective behind the performance review is to make sure that the employee has a clear understanding of their job and to meet the expectation for the position they are hired. The first thing in performance review is to identify the cause of a performance problem and how to solve that problem.

Identifying the cause of performance problem

a)      Lack of knowledge and skill

b)      Lack of motivation

c)       Personal difficulties

d)      Inability to perform

e)      Performance obstacle

Why to do performance review?

a)      Employee’s development and improvement

b)      Identification of training required

c)       Employee’s motivation

d)      Identify the issues within the organization

e)      To meet customers or client’s satisfaction

f)       To identify the areas for improvements

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Tips for successful performance reviews:

1)      Conversation between manager and employees for the Annual Review

To assess progress towards a decided goal, midyear assessment is very crucial. It gives time not only to see the progress of the project, but also to analyze the area for correction. The main activities that are focused in such assessment are progress of the project before and after the conversation between employees and manager, review of the documents from last performance, documents or notes accumulated during the year eg: a feedback from the client.

2)      Document the conversation

A written performance document or form is important, because it keeps a record of past performance and what are the expectations for future projects.

3)      Self Appraisal form

Managers can ensure that every employee receives an annual review form and on the basis of that annual review form, the review process is done.

4)      Reciprocal Process

A frequent conversation about the performance between the managers and employees will create an atmosphere of shared responsibility of work and how to execute it.

Reciprocal process is very important for those employees whose interaction with their managers is very less.

5)      Keep employee’s job description upto date

A review of employee’s job description is very important, as to keep a watch on their job responsibility.  It helps to analyze the skills and training required for the job, as with the time the responsibility of the job changes.

6)       Multi-Rater Feedback

This is also helpful to account the performance of an employee. A multi-rater feedback form is a feedback form that is filled by employee’s colleagues or customers, to map the employee’s performance.

7)      Review each aspect of employee

Do not review any one aspect of employee, employee often do better in some area than others.  So it becomes necessary to review each aspect of employee independently while doing performance review.

8)      Judge performance not potential

Focus on actual performance and the contribution of an employee to complete the task.

9)      Judge achievement, not progress

Judge the achievement of the employee and the positive results obtained during a fixed period of time rather than activity or progress.

10)   Self-evaluation

Self-evaluation of an employee can be crucial, as it opens the door for discussion with employee and areas of improvement can be identified.