Introduction
Evaluation of employee performance is a necessary event for any company. One of the most popular methods is formal performance appraisal. This method of assessment allows for quick and demonstrative certification. A structured performance evaluation conversation consists of several important steps, allowing clear evaluation. According to the standard developed model, it is possible to carry out certification regularly without spending additional resources on the process. Despite the fact that this system is considered stressful, for large companies this is the only opportunity to carry out an assessment in a short time. Formal performance appraisal is a reliable system with proven effectiveness.
Formal performance appraisals are an effective method for evaluating employees. This method is especially advantageous in large companies where it is necessary to quickly sum up the work of a large number of employees. The system is simple and does not require large financial investments and training of special employees. The methodology allows the management to identify potential points of growth, efficiency, successes and failures.
Structured Performance Evaluation Conversation, Communication Model
It is proposed to use the communicative model of Aristotle. It is necessary to understand what is being said, on what occasion the dialogue occurs, and what it is aimed at (Richmond & McCroskey, 2019). It is necessary to check the understanding of the employee of the current situation. Open-ended questions assess specific examples of the employee’s work and formulate future tasks and opportunities (Novakovic, 2019). The final stage involves summarizing the results and assigning further actions.
Benefits for the Employee
First of all, the employee can get direct feedback from the manager, understand their advantages and disadvantages. Successes can motivate an employee, and failures can push for further opportunities and growth (Business.com, 2022). However, formal appraisals significantly increase stress levels of the employees (Murphy, 2020). On the other hand, as a result of a conversation, the employee can ask questions of interest and demonstrate ambitions for future projects.
Benefits for the Employer
The benefits of a formal appraisals for the employer are the ease with which the assessment can be carried out. The management can easily check the suitability, assess the potential for future work and indicate the direction of error correction (Bonet et al., 2019). Employees will become accustomed to this performance review method and their stress level will decrease, allowing to make HR management decisions.
Unsatisfactory Result
If employees do not pass formal certification, they do not necessarily have to be fired. Options for additional interviews or testing may be offered. An employee can be transferred to another department or project. The employee may be asked to attempt the interview again, possibly after additional training. If during the certification it turns out that the employees are completely unsuitable, they must be fired.
Recommendations
To effectively conduct a formal assessment of employees, it is necessary to follow a clear procedure. It is necessary to define goals, have adequate evaluation criteria and guide the employee, sorting mistakes and failures. Psychological tests can be used to complement the performance evaluation format. Such an addition will help to find ways to improve by showing the employee’s comfortable role in the team, leadership qualities and work priorities.
Conclusion
Formal appraisal is a simple and affordable way to check the performance of employees. Evaluation can be carried out quickly and at minimal cost. If the employees do not live up to expectations, they will not necessarily be fired. Employees become accustomed to the procedure and stress levels will gradually decrease over time. Formal appraisal remains one of the few assessment methods for large companies.
References
Bonet, R., Eriksson, T., & Ortega, J. (2019). Up for Review: Unravelling the Link between Formal Evaluations and Performance‐Based Rewards. Industrial Relations: A Journal of Economy and Society, 58(1), 108-137. Web.
Business.com. (2022). Reinventing Performance Management. Business Basics. Web.
Murphy, K. R. (2020). Performance evaluation will not die, but it should. Human Resource Management Journal, 30(1), 13-31. Web.
Novakovic, A. (2019). Difficult Conversations with Employees: 9 Crucial Rules to Remember. Insperity. Web.
Richmond, V. P., & McCroskey, J. C. (2019). Human communication theory and research: Traditions and models. In An integrated approach to communication theory and research (pp. 237-246). Routledge.
