Employee Performance Evaluation Best Practices

A Methodology to Evaluate Employees Performance in Public Sector Organizations

Employees Performance Evaluation is a thorough analysis of the employees performance, by observing his work during a certain period of time and examining all the objective documents relevant to his performance, in order to determine the extent to which employees achieve the specified goals, which affects customers satisfaction as shown in figure 1.

Figure 1: Impact of employee performance evaluation on increasing customers satisfaction

Figure 2: Objectives of employees performance evaluation

Performance evaluation is divided into four types as shown in the figure below.

Figure 3: Types of Employees performance evaluation

Top-down evaluation by the employees direct

supervisor: each employees direct supervisor evaluates his employees performance; the employee retains the right to inquire about the method and foundations of his evaluation.

360-degree evaluation: the employee is evaluated by four parties, not only by his direct supervisor. These are: the direct supervisor, subordinates, co-workers and customers.

Matrix evaluation: in this type of evaluation, the employee is evaluated by different managers. The scores given by managers are averaged to reflect the final evaluation.

Self-assessment: the employee rates himself on the same criteria used by the direct supervisor to evaluate him and then the two evaluations are compared.

The top-down and the self assessment approaches will be discussed further, given that these two approaches are common, easy and inexpensive compared to other evaluation methodologies.

Employee's performance

evaluation

Identify and develop strengths

and areas of improvement

The extent to which employees

achieve goals

The extent to which

administrative units achieve their

objectives

Achieving the

organization's goals

Increasing customers'

satisfaction

Provide employees with information on their performance to encourage them to improve their performance

Raise morals and improve job relations

Increase the effectiveness of control and supervision

Identify training needs

Determine the appropriateness of employees for the jobs

Evaluate selection and training policy

A way to ensure fair treatment

Determine how to distribute rewards and incentives

Types of employeesperformance evaluation

Self-assessment

Matrix evaluation

360-degree evaluation

Top-down evaluation by

the employee's direct

supervisor

Types of Employees Performance Evaluation? What is Employees Performance Evaluation?

Why Employee s Performance Evaluation?

Set performance evaluation goals

Evaluation goals affect the following:

Data collection methods.

Performance evaluation themes.

Time limits for evaluation.

Determine performance evaluation mechanisms to be used

Employee performance evaluation should include all job categories, and appropriate mechanisms should be selected for each category. To clarify this, only three categories were identified, for the purposes of clarification and as an example:

The first category: includes the supervisory and leadership positions.

The second category: includes the technical positions.

The third category: includes administrative support position.

The following mechanisms are usually used:

Evaluation by scores

This method is based on isolating the important elements/ standards that measure employees performance.

Scores are given to each element/ standard.

The direct supervisor gives the employee a score for each element of performance evaluation.

Evaluation by objectives and results

This method is based on involving employees in setting the objectives that should be achieved.

The employee is evaluated on the basis of the objectives that have been achieved.

Prepare evaluation forms

Foundations of performance evaluation by measuring objectives and results

This mechanism involves setting the objectives to be achieved by the employee at the beginning of each evaluation period and follow them up to ensure achieving them. The following are the foundations of performance evaluation according to management by results and objectives:

Set objectives for each employee depending on the departments strategic direction and the annual plans of its departments.

The employees tasks and duties, as defined in his job description, are considered.

The objectives are determined by the direct supervisor in agreement with the employee.

Objectives are determined at the beginning of each year. It is possible to set objectives for more than one year, provided that achievement rates and the desired results for each year are determined.

1. Set performance evaluation goals

2. Determine performance

evaluation mechanisms to be

used

3. Prepare evaluation forms

4. Distribute

evaluation forms

5. Conduct performance

evaluation and collect data

6. Analyze data

7. Hold meetings to discuss evaluation

results

8. Submit results to management and take the necessary

measuresSupport jobs are not evaluated using evaluation by

objectives.

1

2

3

How to implement Employees Performance Evaluation?

When setting and formulating the objectives, the direct supervisor should select specific, measurable, attainable, realistic and timely objectives (SMART objectives).

The direct supervisor shall follow-up the objectives periodically to ensure they are achieved in the expected time frame.

Forms of performance evaluation by scores

Evaluation by scores is used in both self-assessment forms and top-down evaluation by the direct supervisor. The following steps show how to prepare the forms for performance evaluation by scores:

First: determine the main themes for employees performance evaluation, which are:

Job performance

Job capacities

Job behavior

Second: determine performance criteria for each of the main themes.

Examples of performance criteria for employees in the

first category for each of the main themes of employees

performance evaluation

Job performance

- Problem solving and decision making

- Optimal use of resources - Achieving the job objectives

Job capacities - Work planning and distribution- Leadership and supervisory skills- Ability to quick understanding

Job behavior

- Creating teamwork spirit - Motivating and guiding employees - Positive impact on others

Third: determine the weights of the employee performance evaluation criteria. Fourth: prepare evaluation forms.

Distribute evaluation forms

Employee performance evaluation involves distributing evaluation forms to direct supervisors and the employees, and the periodic review of performance evaluation system and form to ensure efficient implementation.

Conduct performance evaluation and collect data

Data for the forms of each employee is collected, and the process of collecting forms from the employees and their direct supervisor is followed-up, within the specified time limit. Analyze data

Upon completion of the compilation of evaluation forms and ensuring that all employee performance forms are filled out completely, each employee is evaluated separately. Analyze performance evaluation data by measuring the

objectives and results

Evaluation data is analyzed by identifying the extent to which each objective has been achieved and measuring the performance indicator of each objective and then calculating overall achievement in the evaluation period. Performance evaluation by scores

Evaluation data for each of the categories covered by the performance evaluation for both self-assessment and top-down evaluation is analyzed in the same way. First: evaluating performance levels for each of the performance criteria

Performance levels are evaluated by expressing evaluation levels (from 1 to 5) in their previously-determined real weights; the level of the employees performance for each performance criterion is calculated using the following equation as indicated below:

Evaluation level = weight evaluation level

5

4

5

6

Second: evaluating employees performance in general

The overall performance of employees is concluded by adding the evaluations of the main themes to evaluate the employees performance. The table below shows how to calculate the final evaluation result for the performance of an employee:

Evaluation elements

Weight Evaluation Rate

Job performance

200 112 56%

Job capacities 340 264 77.6%

Job behavior 460 334 72.6%

Overall performance rate

1000 710 71%

Hold meetings to discuss evaluation results

A meeting between each employee and his direct supervisor is held to discuss the results of self-assessment and top-down evaluation. They discuss also how close the results of self-assessment and top-down evaluation are. If the gap between the two results is big, the employee and his direct supervisor should review their evaluations or submit the results to the senior manager to review the evaluation process.

Submit results to management and take the necessary measures

The final results are submitted to the departments management to evaluate employees performance. Performance evaluation results significantly affect the following: Annual pay raises.

Special rewards and bonuses.

Promotion and career progression.

Identifying training needs.

Moral incentives.

8

7