Employee evaluations are such an important part of the whole performance management system that comprises a number of steps and processes.
There are several terms that you are likely to come across during this process. Take a look at some of the most important terms and definitions that are explained below in great detail.
- Performance Management Definition
- Performance Improvement Plan Definition
- Performance Review Definition
- Employee Evaluation Definition
- Self Evaluation Definition
- Employee Retention Definition
- Constructive Feedback Definition
- 360 Degree Review Definition
- Annual Goals Definition
- Recency Bias Definition
Performance Management Definition
What is Performance Management
Performance management is best described as a continuous and ongoing communication and feedback process that aims to optimize an employee’s performance so that they are able to perform at work to the best of their abilities.
This process occurs between employees and their supervisors in which the latter provides feedback, reviews results, sets objectives, identifies goals and clarifies expectations. The ultimate goal here is to ensure that an employee’s performance and progress is well-aligned with the organization’s overall objectives and goals.
Performance Improvement Plan Definition
What is a Performance Improvement Plan
Also referred to as a performance action plan, this is a vital tool that is used for employees with performance deficiencies to help them overcome the pitfalls they experience at work and successfully get out of a challenging situation.
It’s like a formal document that states and highlights recurring performance issues about an employee and also mentions important goals that they need to achieve to be able to retain a good position in the workplace.
Performance Review Definition
What is a Performance Review
Performance review is like employee evaluation in which a manager conducts a formal assessment to evaluate their overall work performance. The purpose of a performance review is to offer feedback to employees, identify their strengths and weaknesses and set objectives and goals for the future.
When done right, performance reviews have the potential to bring about a plethora of benefits for a company or an organization.
Employee Evaluation Definition
What Is Employee Evaluation
Also referred to as performance review, employee evaluation refers to the periodic assessment of employees by their managers in an attempt to evaluate their progress, performance, measure their growth, praise and reward their achievements and discuss current and future expectations, among many other things.
Employee evaluations typically occur on an annual basis, but some organizations might also conduct them twice a year in order to stay updated on employee performance and progress.
What Is Self-Evaluation
We all know about employee evaluations that are conducted by managers and employers to gain insight into an employee’s work and performance. A lot of organizations and companies also employ self-evaluations which become a part of the annual appraisal process. As the name implies, self-evaluation is an assessment tool in which an employee fills out a self-evaluation form that consists of a series of questions based on his or her overall performance.
Employee Retention Definition
What Is Employee Retention
For any company or organization to succeed, they need to be able to retain their best employees by keeping them focused and motivated enough. Given the tight talent market that exists these days, a serious concern among most business executives and HR professionals is retaining talent.
This is the ultimate goal of employee retention, whereby companies employ certain practices and policies to keep their best employees on board which also helps reduce the turnover rate.
Constructive Feedback Definition
What Is Constructive Feedback
Feedback plays such an integral role in any and every organization, business and company. There are different types of feedback in general, such as informal feedback, formative feedback, formal feedback, summative feedback and many others. One of the most important types is constructive feedback which simply involves the use of helpful and effective suggestions and comments that lead to better and more positive outcomes in the workplace.
360 Degree Review Definition
What Is 360 Degree Review
360 degree review is the exact opposite of the typical employee performance review in terms of how it is conducted. This is an essential tool used during the performance management process in which feedback about an employee and their performance is collected from the people who work around them.
This performance evaluation tool takes into consideration feedback and review from groups of people like the employee’s coworkers, peers, reporting staff and even customer in some cases.
Annual Goals Definition
What Are Annual Goals
Goal-setting is a vital part of any and every organization, business and company primarily because it helps set clear priorities for everyone and also makes it easier for managers and supervisors to track employee performance and progress. This is why every organization comes up with a set of annual goals that help them set and define a general direction for the following months.
Annual goals should always be clear, direct, and well-aligned with the overall objectives and strategies of the organization.
Recency Bias Definition
What Is Recency Bias
Performance reviews are such an integral part of the whole performance management system, but they are often met with hesitation because many people believe that they are laced with biases. There are several different types of biases that adversely impact the performance review process, one of which is called recency bias.
As the name suggests, this type of bias focuses on an employee’s performance in a recent time period instead of considering the total time period.