An effective performance evaluation measures an employee's progress and demonstrates the supervisor's interest in the employee's personal development. It also serves as a guide for further training and as an opportunity to discuss problems and interests with the supervisor. This can best be done by identifying the goals that will increase the organization's value and aligning the employee's performance with behaviors that are essential to the organization's success. Other common objectives of effective performance evaluations are to:
• Identify a limited number of critical behaviors that are vital to the organization's ability to meet its goals.
• Enhance employee understanding of the results considered essential to the success of the business.
• Serve as a tool to determine salary increases based on a worker's contribution to the organization.
• Give and seek honest feedback because employees perform better when they are allowed to speak openly and clarify performance measures.
• Apply uniform performance standards that assure fairness and eliminate confusion about performance standards.
• Give employees a stake in the process by encouraging them to help set their own performance goals and assess their progress in meeting those goals.
• Make performance management an ongoing process that reflects changes in the business.
• Gather information for succession planning and the development of training programs by identifying employees who have the interest and potential for advancement.
• Improve coaching by encouraging supervisors to observe an employee's job performance and compare it with performance standards on an ongoing basis.