Performance Management
Unit: 323: Understanding performance management
1.1
A formal performance assessment is done when the communication between a line supervisor and an employee is formal and a system is in place to report managerial opinions and observations on employee performance. The assessment process can be quite beneficial to the organization and to the individuals involved if done properly. There are many good reasons to conduct a formal performance assessment. If assignments and standards have been clear, if coaching through informal evaluation and feedback has been ongoing, a formal performance assessment will be merely a summary of what has already occurred. It will include no surprises for the employee or the supervisor, because both should already know how successful the employee has been in meeting performance standards. For example, in my company there exists a formal Performance Management system in our online portal. We are asked to set five objectives in the system, at the beginning of the business year. These are checked by our supervisor and confirmed. Our performance in relation to these five objectives is then assessed mid-year and at the end of the year by our manager. Everything is done officially and formally in the online portal. this type of performance assessment can also help the management to decide financial rewards for the employee based
The informal assessment is conducted whenever the supervisor feels it necessary. The day-to-day working relationship between a manager and an employee offers an opportunity for the employee’s performance to be judged. This judgment is communicated through conversation on the job, over coffee, or by on-the-spot examination of a particular piece of work. Informal appraisal is especially appropriate when time is an issue. The longer feedback is delayed, the less likely it is to motivate behaviour change. Frequent informal feedback to employees can also prevent surprises when the formal evaluation is communicated.
1.1
A formal performance assessment is done when the communication between a line supervisor and an employee is formal and a system is in place to report managerial opinions and observations on employee performance. The assessment process can be quite beneficial to the organization and to the individuals involved if done properly. There are many good reasons to conduct a formal performance assessment. If assignments and standards have been clear, if coaching through informal evaluation and feedback has been ongoing, a formal performance assessment will be merely a summary of what has already occurred. It will include no surprises for the employee or the supervisor, because both should already know how successful the employee has been in meeting performance standards. For example, in my company there exists a formal Performance Management system in our online portal. We are asked to set five objectives in the system, at the beginning of the business year. These are checked by our supervisor and confirmed. Our performance in relation to these five objectives is then assessed mid-year and at the end of the year by our manager. Everything is done officially and formally in the online portal. this type of performance assessment can also help the management to decide financial rewards for the employee based
The informal assessment is conducted whenever the supervisor feels it necessary. The day-to-day working relationship between a manager and an employee offers an opportunity for the employee’s performance to be judged. This judgment is communicated through conversation on the job, over coffee, or by on-the-spot examination of a particular piece of work. Informal appraisal is especially appropriate when time is an issue. The longer feedback is delayed, the less likely it is to motivate behaviour change. Frequent informal feedback to employees can also prevent surprises when the formal evaluation is communicated.