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Why should organizations do Performance Evaluation?


What do you expect of me? And how am I doing in meeting your expectation? Are the two essential questions every employee would want an answer to!  The first question is answered when the employee is hired, at the start of the year and projects. The second question is answered at the time of performance evaluation. Performance evaluation is a needed tool that enhances the efficiency of work unit.

Why should organizations do performance evaluation? 

The purpose of performance evaluation is plenty. Let us check out a few here!

  • Performance evaluation helps measure actual performance against expected performance.
  • It creates a platform where employees and managers get an opportunity to exchange innovative work ideas.
  • It allows the organization to identify the training and development needs to plan for future career growth.
  • Organization can determine employee skills and abilities for promotions, transfer etc. through performance evaluation.
  • It supports lining up of employee goals and organization.

The primary purpose of performance evaluation by organization is to administer good amount of space for open communication about performance expectations and feedback. Feedback is very much required for the employees to understand the expectation of the employer and to improve on their own performance for personal satisfaction . Therefore, employees should be evaluated fairly and the feedback should be properly structured.

How would performance evaluation benefit the organization? Let's see!

  • Prioritizes the work to be done.
  • Upgrades employee motivation, commitment towards work and their productivity.
  • Helps proper cataloging of employee objectives and goals
  • Fosters employee recognition
  • Improvement opportunities for employee development are identified

Methods of employee evaluation differ from organization to organization, but the elementary purpose and benefits of it remains as mentioned above. Therefore, every organization should carry out periodic employee performance evaluation.

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