Human Resource Management or Human Capital Management is one of the fundamental components in performance evaluation. Organizations are obliged to be more effective and efficient, have better business strategies and do more with less in order to remain competitive in the marketplace
Performance evaluation or career assessment is a process that must integrate the following elements: Mission, Vision and strategic objectives, organizational culture, job skills of the positions, training and development.
Although HR professionals clearly understand the importance of optimal management of worker performance, they often face internal obstacles, as there is generally resistance to this process by both those who evaluate and those evaluated.
The latter perhaps due to fear of receiving suggestions about the way they are doing their work or due to the lack of impartiality they perceive from their evaluators, thus generating an environment of high tension since their permanence in the organization depends to a great extent on this.
But this can be changed, forward-thinking companies are taking steps to successfully address this negative perception of performance appraisal and are putting into practice innovative solutions that ensure real appraisals that contribute to performance improvement.
An effective performance appraisal process enables managers to:
- evaluate and measure individual performance and document it
- align employees’ day-to-day tasks with strategic business objectives
- determine whether job performance expectations were satisfactory
- support decisions of human resource planning and career plans
- identify strengths and weaknesses in performance to design training programs
- and measure the direct relationship between performance and productivity
On the other hand, it should be noted that the methods used to measure the performance of the workers and the training that the evaluators have also contribute positively to job satisfaction, staff retention, and employee loyalty to the company.
It is important that during this process, the delivery of timely feedback to the evaluated is taken into account, that job performance expectations are communicated clearly and assertively, provide adequate learning and development opportunities and recognize and provide incentives to those who they got the highest marks, so there is a motivation to improve every day.
Regarding the performance of a poorly structured performance measurement process, it can induce distrust, lower commitment and productivity because if workers with a better job level do not see the differentiation between the qualifications obtained, the incentives and benefits, it will cause demotivation in them and therefore it will affect your performance.
If there is no organized documentation that allows having clear figures and statistics, it will be difficult to have concrete data, which would make it difficult to make decisions that promote employee training.
Likewise, before a legal process, the company would be at a disadvantage because there is no evidence of the monitoring that has been carried out on the worker’s performance.
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