Performance evaluation is a tool used to evaluate how employees are performing their jobs. It involves qualitatively and quantitatively assessing an employee's performance. The objectives of performance evaluation include providing feedback, making promotion and downsizing decisions, motivating performance, setting and measuring goals, determining compensation, counseling poor performers, and improving overall organizational performance. The process involves establishing performance standards, setting measurable goals, measuring actual performance, comparing it to standards, discussing the appraisal with the employee, and taking corrective actions if needed. Performance evaluation is important for performance enhancement, compensation adjustment, placement decisions, identifying training needs, and career planning and development.

1. HUMAN RESOURCE
MANAGEMENT
2ND semester --- 1ST Mid PPT
IMMANI CHANDRA SHEKAR
REGD. NO. :19K61E0020
SUBJECT CODE :18MS02T3
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2. Mid Topic
Performance Evaluation
and
Importance
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3. Meaning :
Performance Evaluation is a
tool which is used to evaluate
the employees' performance
at the Workplace. It
generally includes qualitative
and quantitative dimensions
of employees' job
performance.
Definition :
According to Gomej-Mejia et
al., "Performance Evaluation
involves the identification,
measurement,and management
of human performance in
organisations".
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4. Objectives of Performance Evaluation:
 Providing Feedback,
 Facilitating Promotion and Downsizing Decisions,
Motivating Superior Performance,
 Setting and Measuring Goals,
 Determining Compensation,
 Counselling Poor Performers,
 Encouraging Coaching and Mentoring,
 Supporting Manpower Planning,
 Determining Training and Development Needs, Validating
Hiring Decisions,
 Providing Legal Defensibility for Personnel Decisions,
 Improving Overall Organisational Performance
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5. Process of Performance
Evaluation:
 Establish Performance Standards with Employees,
 Mutually Set Measurable Goals,
 Measure Actual Performance,
 Compare Actual Performance with Standards,
 Discuss the Appraisal with the Employee,
 If Necessary, Take Corrective Actions
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6. Importance of Performance
Evaluation:
 Performance Enhancement,
 Compensation Adjustment,
 Eliminating Informational Inaccuracies,
 Taking Placement Decisions,
 Diagnose Job Design Errors,
 Identifying Factors Affecting Performance,
 Ensuring Equal Employment Opportunity,
 Career Planning and Development,
 Identifying Deficiencies in Staffing Process,
 Identifying Training and Development Needs, 6

7. Conclusion:
 The ultimate goal of performance appraisal should be to
provide information that will best enable managers to
improve employee performance.
 The performance appraisal provides information to
help managers manage in such a way that employee
performance improves. 7

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