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24 March 2021

What is Performance Evaluation?

Emine Çelik Uzun
| Blog
What is Performance Evaluation?

What is Performance Evaluation?

Performance Evaluation, which is a systematic measurement that is made by comparing the employee's skills to work, potential, work ethic and similar qualities with other employees, stands out as a method that should be applied by all institutions for an efficient business process.

History of Performance Evaluation System

Although the date when performance evaluation examples appeared in the modern age is the beginning of the 1900s, it is possible to see the first examples in the Wei dynasty in China in the 3rd century BC. A staff member assigned to evaluate the king's servants at that time evaluates the performance of the servants. Again, we come across primitive examples of performance evaluation in the past period. However, the first examples of the system used today emerged at the beginning of the last century, although it is not certain, the first performance measurement was started to be applied as work measurement in the early periods of the scientific management movement initiated by Frederick Taylor.

In our country, performance evaluation started in Karabük Iron and Steel Factory and then applied by public institutions such as Sümerbank, Machinery and Chemical Industry, State Railways. Performance evaluation, in which public institutions and organizations are pioneers in practice, has been implemented by the private sector in our country since 1960.

How Should Performance Evaluation Be Made?

How to perform performance evaluation is a dynamic process that varies according to which method is used. Scientific studies conducted have gathered the purpose of performance management under 3 main headings;

1. Managerial Objectives: It is aimed to assist the process by using measurement methods such as performance evaluation in making decisions such as promotion, raise, remuneration, transfer and dismissal that are decided by the management.

2. Development Goals: It is aimed to help the planning of activities such as training, consultancy and guidance to ensure the development of the personnel.

3. Purpose of research: It is aimed to improve the negative variables by determining the effects of the employee's job satisfaction, motivation level, determination of goals and performance level.

While the performance management strategies you will implement in your company vary according to which of these goals you choose, the measurement tools you choose are also an element that complements your performance evaluation goals.

The Importance of Performance Evaluation

1. Allows you to accurately measure the performance of employees.

2. Allows you to set wage standards.

3. It can be used to reward achievements and identify promotions.

4. It allows you to detect whether an employee is working efficiently or inefficiently.

5. It helps you identify the training needs of the employee.

6. Increases communication between manager and employee.

7. It helps to be aware of the employee's abilities and encourage teamwork.

8. Provides feedback to employees, allowing you to actively involve them in the process.

9. It allows managers to evaluate themselves.

10. Provides increase in performance.

Negative Aspects of Performance Evaluation

Performance evaluation has unique dynamics for each company. For this reason, evaluation methods should be applied that are in line with the realities of the company, equitable and do not ignore scientific foundations, and the results should be reliable enough to be accepted by everyone. Most of the employees declare that when they think that there is insecurity in their performance evaluation practices, they start to feel tested, inadequate, worthless and their job is at risk.

A study conducted by Routers shows that 4 out of every 5 employees in the USA are not satisfied with the performance evaluation results and they think that the results obtained are negative, contrary to what they expected. For this reason, it is very important to determine the performance evaluation methods and tools well, to determine the results fairly and to prove their reliability.

One of Turkey's Human Resources Focused ERP Software Stafik, running to the aid of the human resources department of performance evaluation. With the special module it offers, it allows you to create performance forms, use the evaluations of the senior, subordinate and colleagues of the staff in your evaluations, while also allowing you to plan activities such as career planning and training.