Performance Measures: Pay-for-Performance Evaluations

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Recommended: A sample performance management system

“Well-designed employee performance appraisal instruments assume great importance by providing agencies with information that can guide administrative and developmental decision-making about their most important asset—their human resources” (Mulvaney, McKinney, and Grodsky, 2012, p. 505). Job standards are used in performance management systems to inform the employee of the metrics by which their performance is being measured. Performance management systems inform employees of his or her past performance and what is expected of him or her for future performance. Performance evaluations are critical for organizations that choose to manage by objectives, and to and assess employees on a periodic basis, e.g., monthly, quarterly, bi-annually, or annually, etc. It is best practices to complete a performance evaluation more than once a year. Annualized performance evaluations are usually completed incorrectly, and the person measured is usually lauded or criticized for the last incident of success or failure. Performance evaluations, when conducted properly, can improve an organization’s functioning, process, and efficiency. Performance management as a tool in the mentoring and succession planning processes is a strength in any management program. Performance evaluations can also be an integral part of an organization’s compensation practices and policies when linked to salary increases and other bonus measures. Performance pay programs also have the added advantage of rewarding employees that have successful completed or surpassed benchmarks, while not rewarding bad behavior to those who slack in successfully reaching mutually agreed upon benchmarks and goals or for those who have fallen below previous set performance standa... ... middle of paper ... ...sonnel Management, 41(3), 505-533. Sudin, S. (2011). Fairness of and satisfaction with performance appraisal process. Journal of Global Management, 2(1), 66-83. Sullivan, J. (2004). What are the best HR metrics for a large organization? Ere.net. Retrieved from http://www.ere.net/2004/07/26/what-are-the-best-hr-metrics-for-a-large-organization/ Swiercz, P. M., Bryan, N. B., Eagle, B. W., Bizzotto, V., & Renn, R. W. (2012). Predicting employee attitudes and performance from perceptions of performance appraisal fairness. Business Renaissance Quarterly, 7(1), 25-46. Video Arts. (Producer). (n.d.). Performance review - Every appraisee’s dream [DVD-ROM]. Available from http://www.videoarts.com/product/AV3/Performance-review:-Every-appraisees-dream. Wright, E. W., Domagalski, T. A., & Marvel, J. H. (2013). Common sense performance appraisal. Supervision, 74(5), 15-18.

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