PERFORMANCE APPRAISAL

The performance evaluation is a key resource in management of people and for companies seeking to grow and develop in a structured and systematic way. This is because with this artifice, it is possible to adjust flaws and promote the use of human capital, encouraging professional development in favor of the organization. Given its importance and value, we have developed a comprehensive guide on performance evaluation so that HR can master the subject and answer your questions about the subject.

Basically, using specific performance assessment tools, the manager is able to diagnose the performance of employees in a certain period of time and, from there, verify which points should be improved, and, thus, the employee can go in search of ways to improve those points.

At the same time, the performance evaluation also allows managers to be able to make more assertive decisions in relation to their employees, as they come to better understand the work profile of each one.

Do you want to better understand how performance evaluation can be your ally in the people management process? Read on and find out! In the next topics, we will cover everything about:

What is performance appraisal?

How to perform performance evaluation?

What are the principles of performance appraisal?

What are the objectives of performance appraisal?

How important is performance appraisal?

What are the types of performance appraisals?

How to do a performance evaluation?

What are the tools for performance evaluation?

What is performance appraisal?
In general, performance evaluation is a people management tool that aims to measure the level of performance of an employee or a team in relation to the company as a whole. It is a process that encompasses stages of identification, diagnosis and analysis of an employee's behavior during a certain period of time.

Aspects such as their professional attitude, technical knowledge, relationship with work partners, behavior, among other strategic points for the position and for the company as a whole are analyzed. With the results, managers and employees can even draw individual development plans (PDI) and exchange feedbacks for the development and achievement of better results.

During performance appraisal, the manager must evaluate different performance criteria. From this, it is possible to identify points of improvement, training needs or even the relocation of the employee to other functions and areas in which their characteristics and professional skills can be enhanced.

For performance evaluation to be truly strategic, it is important to take into account, in addition to behavioral aspects, the achievement of established organizational goals. In this way, we will have a balance and a systemic view of what the employees' professional characteristics are and what results have been delivered to the company based on these characteristics. 

Performance evaluation is also a way of feeding the HR area with information that helps decision making about bonus practices , salary increases, layoffs, training needs, etc. It is worth remembering that, in this case, it is extremely important to adopt a system that suits your company's needs and that is compatible and coherent with the internal organizational policy, such as the salary position plan, if the company has one.

How important is performance appraisal?
By making a really efficient performance evaluation, which brings relevant, solid and tangible information , managers will obtain valuable insights for the organization's growth, starting with the development of its employees, its most valuable assets.

About the advantages for the employee, through the use of the performance evaluation, he has the opportunity to know more about his professional profile, noting his strengths and improvement and then developing them. Thus, the professional starts to see himself/herself valued, challenged and in constant evolution, which motivates them to work harder and more productively.

At the same time, HR managers are beginning to be able to make more assertive decisions in relation to their employees. That's because they start to better understand the work profile of each employee. In this way, new possibilities for internal relocation of employees become viable , in addition to offering bonuses and awards to employees who stand out in the evaluation.

The company is also able to identify gaps in the knowledge of its employees. By having knowledge of the skills and areas that most need intervention, HR has the power to facilitate the development of people through training and qualifications. These approaches will certainly result in more productivity, engagement and motivation, which consequently lowers absenteeism and turnover rates .

It is worth noting that evaluations alone do not bring benefits, they bring results and generate analysis, which will be used and monitored in continuous cycles.

When performance evaluation is carried out continuously, it has the power to significantly contribute to the growth of each professional and, therefore, the company. Therefore, it is important to define a periodicity for this process so that employees engage with it .

Briefly, performance evaluation allows you to:

the employee understands where they can improve and develop efficiently;
HR and managers obtain accurate and useful results to make assertive decisions;
the company is clear about the characteristics of its employees and what the results have been achieved.
What are the principles of performance appraisal?
Before structuring a performance appraisal, keep in mind principles such as:

 Be clear about which criteria will be evaluated (and whether these criteria are in fact strategic);
Make employees aware of the importance of evaluation and engage them during the process;
Analyze the results with caution and discretion;
Use the results for decision making;
Monitor the development of employees and the impacts of decisions that were taken from the assessment;
Continuously assess performance.
What are the objectives of performance appraisal?
In addition to being a strategy to develop the team and reinforce the behaviors valued by the company, performance evaluation can have several objectives , such as:

Objectively show what are the points that the employee needs to improve and help the manager to implement a training program and change of habits;
Provide employees with the opportunity to have a frequent discussion with their manager about their behavior, performance and skills during the period;
Provide the manager with a way to visualize the strengths and improvement of each employee;
Make an employee's performance history to be used as a basis for bonuses and salary readjustments and to support possible job changes or promotions;
Improve the manager's interaction with his team and motivate employees;
Generate more engagement with the activities being performed, showing how much they fit into the company's goals;
Adapt the employee's profile in behavioral terms so that he or she generates a greater impact on the company;

Escape from a high rate of employee turnover and absenteeism to prevent staff burnout and maintain credibility with customers.