Last Updated on November 12, 2022 by Dayanand Kadella

You simply cannot afford to neglect Performance Evaluation when it comes to enhancing employee development and organizational success. However, the majority of leaders commit one significant error. They conduct extensive and quick appraisal processes without being aware of the goals of performance evaluation.

However, we are aware that determining or identifying the specific objectives that should direct your evaluations can be challenging. So, in this post, we’ll go over some important things to think about while setting your appraisal targets.

What is Performance Evaluation?

Employees are periodically evaluated on the basis of the quality and quantity of their work performance.

Other names for the Performance Evaluation procedure include:

  • Performance assessment
  • Performance evaluation
  • Merit score
  • Employee Evaluation
  • Performance appraisal

Implementing a performance evaluation procedure promotes employees’ abilities and competencies while supporting their growth. Evaluation of a team member’s efforts is also essential.

Similar to this, being aware of the goals of performance evaluation can help you choose how to conduct a good performance evaluation process.


Who Should Carry Out The Performance Evaluation Or Appraisal?

The evaluation procedure is normally led by the employee’s managers and supervisors. Additionally, some businesses use 360-degree feedback and include stakeholders like the human resources manager, employees, and clients.

What Are The Primary Objectives Of Performance Evaluation?

There are two primary goals for performance evaluations:

  • Evaluative: Its purpose is to let your staff members know how they are doing in terms of performance. Top performers are recognized and underachievers are pointed out using performance statistics.
  • Developmental: It aims to identify the underlying reasons why workers don’t achieve their objectives. The appropriate training and development are subsequently given to staff using the performance data.

How Often Should Performance Evaluations Be Conducted?

In the past, it was common practice to perform yearly evaluations. But a year is a long period, and a lot may happen in that time. Because of this, the waiting duration is not a reliable unit of measurement for performance. Today, most companies undergo performance evaluations every three to six months.


The Top 10 Performance Evaluation Goals for Measuring Employee Performance

  1. Counsel underperforming workers 
  2. Improve Work Quality And Quantity At Higher Levels.
  3. Goal – setting Is Essential To Systematic Evaluation
  4. Meaningful and Impact-Driven Recognition
  5. Offer Regular Feedback to Boost Job Performance
  6. Reduce Complexity in Promotion Awarding Decisions
  7. Comprehensive Growth of the business.
  8. Transparency in the Performance Evaluation Process
  9. Identifying Training and Development Needs
  10. Developing a Plan to Improve Employee Performance

The top 10 performance evaluation goals, which apply to both performance evaluations and other official meetings with the employees, are listed below in detail:

1.           Counsel Underperforming Workers 

Unfortunately, not everyone will live up to your company’s requirements. The management finds it challenging to inform a performer that they fell short of the performance evaluation requirements.

Here, the majority of managers err by concentrating solely on the negatives. If you exclusively address a person’s poor work performance, they can become resentful of you.

Poor performers frequently recognize their poor work performance. The underperformers should receive advice from their management rather than being made fun of (as they would anticipate).

The act of counseling involves both parties. To determine why the employee is producing work of poor quality and quantity, the management must collaborate with the employee.

Delivering an actionable performance evaluation to an underachiever requires striking a balance between their strengths and flaws.

2.           Improve Work Quality And Quantity At Higher Levels.

Companies may convey performance standards and behaviors that merit rewards with the use of an efficient performance evaluation system. Here is how to accomplish it:

The degree of effort required of the employee is clearly defined by a successful performance evaluation procedure. That then serves as a guide for workers to follow.

The performance evaluation process inspires people to do their best work when they wish to advance their careers.

When employees receive a detailed evaluation of their job performance, they become more aware of their strengths and flaws.

Underachievers are given a wake-up call by performance appraisals, which inspires them to step up and work harder to attain their objectives.


3. Goal-Setting Is Essential To Systematic Evaluation

It’s crucial to establish a baseline if you want to design a superior performance evaluation system. Making a baseline entails writing out the objectives you hope to accomplish.

You do this so that later, once the evaluations are complete, you can evaluate the goals and determine whether you were successful in crossing them off the list.

Goal-setting should thus be an essential component of your performance evaluation process. Setting goals is the first step in achieving anything with your performance evaluation system.

But it’s simpler said than done. The majority of managers and supervisors have a tendency to establish overly optimistic targets that are very challenging to achieve. Expect a decline in morale, increased stress, and enduring hostility between managers and workers.

In order to achieve your goals, keep the following in mind:

Clear Expectations: Setting goals makes it easier to determine the performance criteria that should be followed. However, staff must be aware of your expectations of them. When defining goals, you must be clear about the standards used to assess job performance.

Include Your Staff in Goal-Setting:

After that, give workers a voice in the goal-setting process. Talk about the amount of time, resources, and direction the employee will require to complete their assigned tasks.

Use a Goal-Setting Framework: The secret to successful goal-setting is to give quality a higher priority than quantity. To make sure that your objectives are of the highest caliber, use a goal-setting framework like SMART.

4.           Meaningful and Impact-Driven Recognition

Being appreciated is amazing. However, it is particularly effective when you anticipate your manager sharing solely unfavorable feedback, such as performance reports.

Expressing gratitude to your staff at yearly reviews means:

I’ve seen what you’ve accomplished over the years, and I think you’re a crucial addition to the business.

It is simpler for managers to reward and recognize the company’s top performers when there is a systematic performance review procedure in place. Bonuses, salary increases, or even monetary incentives are all acceptable forms of compensation.

Rewards, however, may also be non-cash benefits like business honors, career possibilities, and more thrilling tasks. You’ll need to update your procedure over time to increase its productivity and effectiveness for the business.

5.           Offer Regular Feedback to Boost Job Performance

Ideally, an employee shouldn’t learn about their work performance for the first time at their performance evaluation.

Employees ought to get helpful criticism from their management on their performance throughout the year, along with suggestions on how to do better. The individual should be evaluated on how successfully they took input and applied it at the yearly evaluation, which should be a brief meeting.

To perform at their best, both excellent and terrible employees need regular feedback. The process of performance evaluation is greatly improved by the quantity and calibre of feedback provided.

If their bosses gave them constructive criticism, 72% of respondents believed their performance would increase.


With regular and valuable feedback, a worker can:

  • Get frequent updates on how their job is going. As a result, the employee has an opportunity to assess their strengths and flaws and make improvements.
  • Positive criticism inspires workers to up their game.
  • It is simpler to evaluate the data later on during the performance evaluation when there is regular feedback.

Invest in a feedback process that is more significant than the standard feedback procedure if you want to get the most out of it.

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6.           Reduce Complexity in Promotion Awarding Decisions

A key element of performance appraisals is to provide staff with the things they need the most. Provide Frequent Feedback for Increased Job PA That is career growth, by the way.

Your employee anticipates at least a little from their yearly reports. Getting promoted is the goal for some. Others see it as receiving a wage boost. A limited few additionally demand extras like moving teams, job responsibilities, or being promoted to management.

Employees may decide to leave the firm if their requests are not granted.

That is obviously not what you want to happen as a manager. During yearly evaluations, you should be able to strike a balance between the interests of your employees and the firm.

After getting their performance assessment, 47% of millennials started looking for a new job.


Here’s how to go about it:

Prepare the ground. Ask your staff to make notes of the topics they wish to cover at the evaluation one month prior to the formal evaluation. Compare these goals to the notes you’ve made on the employee during the year. You can create a strategy to expedite the decision if you believe that employees’ expectations are reasonable.

Have ongoing one-on-one conversations with the employee. New expectations won’t be created by employees on the day of their performance evaluation. The likelihood is that they have been pondering it already. You can comprehend where your employees’ expectations are coming from by having casual conversations with them. You will thus be prepared when the day of the yearly evaluation arrives.

7.           Comprehensive Growth of the Business

The objective of routine employee evaluations should include a comprehensive evaluation of the state of the business as a whole. You may evaluate each evaluation once it has been completed to gain a thorough picture of the company’s strengths and faults. You are able to pinpoint areas that require further information and training.

For instance, if a lot of employees have trouble communicating, provide a training session on how to do so in a professional atmosphere. Along with setting personal objectives for employees, you can also create organizational goals.

8.           Transparency in the Performance Evaluation Process

Your staff won’t understand how their performance is being assessed until the performance evaluation process is totally clear. Additionally, a secretive review procedure makes it simpler for prejudice, partiality, and discrimination to infiltrate.

Here are some things human resources managers can do to make sure that openness is not only a consideration for the performance review process but rather a need for it:

  • Begin during the onboarding procedure. Inform your new recruits about the performance evaluation procedure as soon as possible after induction. When new employees know what to anticipate, performing at a specific level becomes a lot simpler for them.
  • Your supervisors should receive training on how to assess personnel in a transparent manner.
  • Have a manual for performance evaluations. It ought to provide instructions on how to maximize performance reviews for managers and staff members.

9.           Identifying Training and Development Needs

Many managers and supervisors think they are free from concern for the next year after the evaluation is over. Such a constructive way of thinking will not benefit your business or your staff in the long run.

A successful performance review system continues after the review. It provides an action plan for what will occur following the evaluation.

Performance evaluations involve more than merely rewarding top performers and punishing underachievers. The objective is to help top performers build on their strengths while supporting underperformers in overcoming their deficiencies.

74% of millennials believe they are “in the dark” about how they could perform better at work.


It demonstrates how, even after a performance appraisal, the majority of employees lack knowledge on how to enhance their performance. That sort of defeats the point, don’t you think?

Therefore, it is essential that managers:

  • During the performance evaluation, determine the areas that require training and growth.
  • Create a training and development program to aid in your employees’ skill and competency growth.

Managers are better able to identify areas where employees are lagging behind after the performance review. This in turn aids managers in determining the kind and volume of corporate training needed.

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10.     Developing a Plan to Improve Employee Performance

A performance evaluation is an excellent place to start when determining the workforce’s areas of strength and weakness. Managers find it easier to explain their expectations clearly thanks to these evaluations.

However, don’t stop there.

Building an action plan that capitalizes on your workers’ strengths and eliminates their deficiencies is the next stage.

But for it to occur, the action plan must:

  • Give the staff a clear understanding of your expectations. Here, transparency is crucial. Employees won’t be able to work toward the appropriate goals unless they are aware of what is expected of them.
  • Set a due date. Setting a deadline helps staff remain on task and chart their development over time.
  • Describe a PMS (performance management software). It would be impossible and complicated to track your employees’ development manually. Particularly if you are managing a sizable crew. All of these issues and more can be resolved with a PMS.

These action plans can involve greater mentorship, goal-setting that is more effective, or extra training and development. The management should ensure that the employee receives ongoing feedback to keep them informed.

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What tools are available for performance evaluations?

The following tools are employed by businesses when performing performance evaluations:

  • Ranking
  • Forced Distribution
  • Paired Comparison
  • Graphic Rating Scale
  • Checklists
  • Essay Evaluation
  • Field Review Technique
  • Forced-Choice Method
  • MBO
  • Confidential Report
  • Critical Incident
  • BARS
  • Performance Test


Nearly every sector uses the annual employee evaluation technique as a standard practice for assessing employee performance. A consistent evaluation system has several advantages for a corporation, despite the fact that how appraisals are conducted and used differs from management to manager. To get the most out of the evaluations, set your goals for employing an employee appraisal program before you do them. You can use any of the tools mentioned above to get started on performance evaluation.

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