What Is The Meaning Of Employee Evaluation?

An employee evaluation, also referred to as a performance appraisal, refers to a process that allows a manager or supervisor to document the performance of an employee. Employers use the results of employee evaluations to make decisions about promotions, layoffs and admission to special training programs. While employee evaluations do serve an important purpose in the workplace, they also have several drawbacks.

Significance

Without regular work evaluations, employees have no way of knowing what they need to improve or what they are doing well. Employee evaluations give managers the opportunity to coach employees on areas of improvement and commend employees on their achievements. Terri Linman, a professor at San Diego State University, explains that providing employees with feedback allows them to set goals that benefit their companies as well as advance their careers. This makes employee evaluations beneficial for both employees and employers.

Types

The traditional employee evaluation consists of a supervisor or manager evaluating the performance of one employee. This type of evaluation involves rating an employee's performance based on indicators set by company administrators. Supervisors may rate employees on factors such as punctuality, work performance, leadership skills and the ability to work well in a team environment. Another method of employee evaluation, called 360 feedback, also provides valuable opportunities for managers and employees. This type of evaluation, also referred to as multi-rater feedback, involves the evaluation of an employee by managers as well as colleagues, customers and subordinates. The employee also rates his own performance during this type of evaluation.

Benefits

Employee evaluations have several benefits for both employers and employees. The University of California indicates that administering employee evaluations helps employers open the lines of communication between managers and employees. This type of evaluation also helps employees take responsibility for improving their work performance. The ability to document employee performance is another major benefit of this type of evaluation. Written records of employee performance give managers the information they need to determine who should receive promotions, salary increases and other incentives.

Drawbacks

Despite the benefits of formal employee evaluations, written evaluations do have several drawbacks. Writing an employee evaluation requires skill and practice, but not all supervisors and managers receive training on this important skill. As a result, some supervisors write ineffective evaluations that do little to help employees understand their overall performance and take steps to improve. Some managers do not have the work experience to write effective employee evaluations. The AllBusiness website explains that supervisors need extensive experience in order to effectively assess employee behavior and performance. Another drawback associated with employee evaluations occurs when supervisors do not have all the facts when preparing a review. This could lead to biased or unfair reviews.

Warning

Because written employee evaluations have legal implications, managers should use as much objectivity as possible when preparing them. Maurice Baskin of Venable, LLP warns evaluators not to "go too easy" on employees or give them all average rankings if their performance does not meet expectations. This creates inaccuracy in the evaluations. Should an employee file a wrongful termination suit, her employee evaluations will play a role in determining if the suit has standing. If a manager was too lenient in completing each evaluation and failed to document the employee's poor performance, the written evaluations could give the terminated employee more credibility in court.