What is Performance Review?
A Performance Review, also known as a performance evaluation or appraisal, is a process in which an employee’s job performance is evaluated by their supervisor or manager. The review typically includes a discussion of the employee’s achievements, areas for improvement, and any feedback or suggestions for future development.
The process is usually done at regular intervals, such as annually or semi-annually, and the outcome is documented in a written report which is stored in the employee’s personnel file. The overall goal of a performance review is to provide feedback and support to help employees improve their performance and achieve organizational goals.
What is the Process of Performance Review?
The process of Performance Review typically involves the following steps:
- Preparation: Before the review, the employee and their supervisor will prepare by gathering relevant information and documentation, such as job performance data, project reports, and customer feedback.
- Self-assessment: The employee will be given the opportunity to assess their own performance, highlighting their achievements, strengths, and areas for improvement.
- Review Meeting: The employee and the supervisor will meet to discuss the employee’s performance. The employee will have an opportunity to provide feedback and ask questions.
- Supervisor Assessment: The supervisor will provide an assessment of the employee’s performance, highlighting their achievements, strengths, and areas for improvement.
- Agreement on Development Plans: Based on the outcome of the review, the employee and the supervisor will agree on development plans and determine any necessary training or support to help the employee achieve their goals.
- Documenting the Review: The outcome of the review will be documented in a written report and stored in the employee’s personnel file.
- Follow-up: The employee and the supervisor will follow up on the development plans agreed during the review, and regularly check-in on progress.
Benefits and Drawbacks of Performance Review
Benefits of Performance Review:
- Improved Performance: By providing regular feedback, performance reviews can help employees improve their performance and achieve organizational goals.
- Enhanced Communication: Performance reviews provide an opportunity for employees and managers to have open and honest conversations about job performance, leading to improved communication.
- Increased Accountability: Performance reviews hold employees accountable for their performance, which can lead to increased motivation and a sense of ownership.
- Better Decision Making: Performance reviews provide managers with the data they need to make informed decisions about personnel, such as promotions, transfers, and layoffs.
- Employee Development: Performance reviews provide opportunities for employees to identify their strengths and weaknesses, and develop plans for improvement and professional development.
Drawbacks of Performance Review:
- Time-consuming: Performance reviews require a significant investment of time for both employees and managers.
- Potential for Bias: Performance evaluations are often subjective and can be influenced by biases, leading to an unfair evaluation of an employee’s performance.
- Decreased Motivation: If implemented poorly, performance reviews can decrease employee motivation, by creating an environment of fear and mistrust.
- Infrequency: Some traditional methods of performance review, such as annual reviews, may be too infrequent to provide meaningful feedback and support for employee development.
- Cost: Implementing and maintaining a performance review system can be costly for organizations.