What is performance evaluation?
o Performance evaluations are formal review processes designed to encourage the informal day-to-day practice of performance management, while providing a framework in support of merit pay adjustments, promotion and employment decisions. Evaluating staff performance and helping employees develop their skills are important duties associated with performance management. Performance management begins with supervisors and employees collaboratively setting goals and standards, clearly communicating performance expectations and evaluating the results during the performance evaluation process. o
o A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. o
o Performance evaluation tools are quantitatively and qualitatively based. They utilize a scoring system that assesses numerical data relative to productivity, as well as characteristic data that measures the quality of the employee's work. The indicators on performance evaluations include items such as business ethics, innovation, motivation, job knowledge, skills and expertise, communication, teamwork, work quality, professionalism, task management and project completion.
Benefits of performance evaluation:
• Facilitation of communication: communication in organizations is considered an essential function of worker motivation. It has been proposed that feedback from performance evaluation aid in minimizing employees’ perceptions of uncertainty. Fundamentally, feedback and management-employee communication can serve as a guide in job performance. • Enhancement of employee focus through promoting trust: behaviors, thoughts, and/or issues may distract employees from their work, and trust issues may be among these distracting factors. Such factors that consume psychological energy can lower job performance and cause workers to lose sight of organizational goals. Properly constructed and utilized performance evaluation has the ability to lower distracting factors and encourage trust within the organization. • Goal setting and desired performance reinforcement: organizations find it efficient to match individual worker’s goals and performance with organizational goals. Performance evaluation provides room for discussion in the collaboration of these individual and organizational goals. Collaboration can also be advantageous by resulting in employee acceptance and satisfaction of appraisal results. • Performance improvement: well constructed performance evaluation can be valuable tools for communication with employees as pertaining to how their job performance stands with organizational expectations. “At the organizational level, numerous studies have reported positive relationships between human resource management (HRM) practices and performance improvement at both the individual and organizational levels. • Determination of training needs: “Employee training and development are crucial components in helping an organization achieve strategic initiatives”. It has been argued that for performance to truly be effective, post-appraisal opportunities for training and development in problem areas, as determined by the appraisal, must be offered. Performance can especially be instrumental for identifying training needs of new employees. Finally, performance can help in the establishment and supervision of employees’ career goals.
The Role of Accounting Information in Performance evaluation
Accounting information consists of all data that a company records from operating activities and reports to the public at the end of a month or quarter. Accounting information is important for investors, analysts and regulators, management, employees, creditor and debtor. This information is also critical for a firm's management because...
...AccountingInformation Systems Article Critique
In the modern business management, information technology has become a very important tool, which has been used in different fields. As the branch of information system, accountinginformation system is the most important economic information in the enterprise; it continual, systematic and comprehensive reflects and supervises the condition of business. The purpose of this paper is to review one article and to discuss three relevant issues(Moshref Javadi et al. 2012). First of all, this essay will discuss the distinction between control or management information system (MIS) and accountinginformation system (AIS). Secondly, it will do some deep research, which is about characteristics of accountinginformation system and some relevant functional structure in the enterprise. Finally, this paper will focus on the importance of accountinginformation system to consider the development in the future(TokiĆ et al. 2011).
Distinction between MIS and AIS
In the original article, the author firstly mentions a core point that people should distinguish between management information system and accountinginformation system. This is a very correct point because the people always...
...Uses of accountinginformation in performance measurements, limitations of accountinginformation and how to overcome these limitations:
Accountinginformation in performance measurement provides essential financial performance measures for any organization with purposes of profit making or not-for-profit. Accountinginformation provides two essential areas of measurement including residual measures and ratio measures for an organization. These measurements can be applied to personnel, sub-divisions, divisions and an organization as a whole in order to effectively rate the performance of each applicable area.
Residual measurements, otherwise known as accounting profit measures, tend to include items such as net income, operating profit, earnings before interest, tax, depreciation and amortization, or residual income. Ratio measures tend to include items such as return on investment, return on equity, return on net assets, risk adjusted return on capital.
Accounting measures are typically standardized, with each general main line item strictly adhered to international accounting standards and thus generally provides an accurate measurement of the performance of the business. On such a general basis, it thus makes the business easily comparable...
University of Phoenix
This is the InterClean performanceevaluation in which not only management will measure the performance of the employee, but the employee will give their input on where they think they are in the areas of position responsibilities, job knowledge, overall strength of employees in current positions, initiative and innovation, quality and accuracy of work, dependability, productivity, etc. As for the employees that we acquire from Enviro Tech for this department, we will evaluate their past reviews accordingly. The employees and management will be given a one month deadline to have their portion of this evaluation completed. At that point a meeting should be set up with the manager and sales representative to evaluate the sales rep’s performance. During this process, each will discuss each area and bring their measurements to the table. After bringing this information forward, the will come to an agreement for the final submission of the performanceevaluation. Also attached is a goals and objectives form for the sales rep and sales manager to agree upon for the next year. The main reason for this portion of the process is so that the goals of the sales team can be discussed and everyone on the sales team can be on one accord. This is also for...
...the given company’s current evaluation form. Engineer feels no one is qualified to grade his performance work due to lack of training. Three are neatness, friendliness, and attitude.
1. Define the most commonly-used sets of criteria which should be evaluated in a performanceevaluation:
Three most popular sets of criteria are individual task outcomes, behaviors, and traits.
B. Compare the relative value of the commonly-used sets of evaluation criteria identified in A1.
Behavior: It is difficult to attribute specific outcomes to the actions of employees in advisory or support positions or employees whose work assignments are part of a group effort. We may readily evaluate the group’s performance, but if it is hard to identify the contribution of each group member, management will often evaluate the employee’s behavior. Measured behaviors needn’t be limited to those directly related to individual productivity. As we pointed out in discussing organizational citizenship behavior (see Chapters 1 and 3), helping others, making suggestions for improvements, and volunteering for extra duties make work groups and organizations more effective
The weakest criteria, because they’re furthest removed from actual job performance, are individual traits.57 Having a good attitude, showing confidence, being dependable, looking busy, or possessing a wealth of experience may or...
Formal determination of an individual's job-related actions and their outcomes within a particular position or setting. In financial trading, its objective is to assess the extent to which the individual added wealth to the firm and/or its clients, and whether his or her achievement was above or below or industry norms. also called performance.
Performance appraisal is the procuring, analyzing and documenting of facts and information about an employee's net worth to the organization. It aims at measuring and constantly improving the employee's present performance and tapping on the future potential.
"Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses." by Sir Wayne Cascio
According to top family business expert Don Schwerzler, “Having a performanceevaluation system in place to measure and monitor how well the business (managers and associates) is doing in meeting “mission critical” benchmarks is a basic building block for every successful family business.”
The uses of performanceevaluation in the organization are outlined below.
Performanceevaluation is the continuous assessment of the employee to asertain his/her performance in comparison with the set standards.
An Analysis on Performance of Evaluations
This paper will discuss several aspects of the procedures of the performance of evaluations in the work place. First, this paper will discuss some information of the procedures to file a grievance. Then this paper will talk about the importance of a grievance procedure. Furthermore, this paper will demonstrate the existing causes and effects that relate to this topic. In addition, this paper will make a prediction in relation to the causes and effects of a grievance procedure.
Performance of evaluations is an important tool for supervisors, their employees and their organizations. They are a powerful process of communicating employer standards, values, job expectations and requirements. From the employee’s perspective, it is important because performanceevaluations help improve employees work performance and improves employee self-awareness. Performance of evaluations may also encourage employees to improve their work performance and even motivate them. From the manager’s perspective, performance of evaluations assists supervisors to measure job productivity. It gives the supervisor an opportunity to communicate the organization’s values to their employees....
...formalized system of performanceevaluation of all employees. The purpose of the evaluation is to provide feedback to employees about their work performance; assist employees in staff and professional development; identify employees' leadership qualities; and achieve the company’s goals. Therefore it is should be done seriously to ensure that the right objectives are tested.
In this case, being a director in sales, Danny is supposed to be more supportive, enthusiastic in doing the performance appraisal with staffs, make it a point to look professional while conducting it. He thinks that conducting the appraisal at king’s park is good as it is more casual for employees, but he did not put that into aspect that a change of environment might make the employee very uncomfortable and that it will cause them to be nervous and affect their performance. Another issue is at such a open space like the park, there might be unexpected situations and there are different factor affecting the appraisal. If the weather is really hot, both director and employees might not be feeling comfortable and both rater might give a non accurate rating and employee might behave differently from normal. Another example is, if the director is a flower lover and admires the flowers in the park, and he finds out that the employee hates the natural environment and flowers, it will unconsciously create a bad impression...
...Performanceevaluations are designed primarily to tell employees how they had done over a period of time and to let them know what pay raise them would receive. The biggest strength of our performance appraisal system at Fairfield Medical Center, would be “feedback”, however other factors like documentation and development do play an important role as well. I will talk about different performance measurements used at FMC, their strength, weakness and then proposed solution.
Behavior Based Measures is a major developed around traits at FMC. Many traits often related to good performance may, in fact, have little or no performance relationship. Traits such as loyalty, initiative, courage, reliability, and self-expression are intuitively desirable in employees, but are individuals who rate high or those traits higher performers then those who rate low? It’s hard to answer this question (as also discussed in current’s module TD). My opinion is that traits like loyalty and initiative may be prized by appraisers, but no evidence supports the notion that certain traits will be adequate synonyms for performance in large cross-section of jobs.
Combine Absolute and Relative Standards: Another step towards performance management system at FMC. A major drawback to individual or absolute standards is that they tend to be biased by positive leniency: that is, evaluators...