The HR Dictionary

Performance Review

An employee's manager or supervisor evaluates their work performance as part of a formal procedure called a performance review, often known as a performance evaluation or performance appraisal. A performance review's goal is to give an employee feedback on how they performed over a predetermined time period, usually a year or six months.

The manager and employee often talk about how the employee performed in respect to the precise goals and objectives that were established at the start of the review period. The manager may also comment on the employee's accomplishments and shortcomings, and make suggestions for growth. Performance reviews may also include a self-assessment component, in which the employee is given the opportunity to reflect on their own performance and provide feedback on their manager's leadership and support. 

The completion of a performance evaluation form or checklist, which is intended to record the employee's performance and manager input, may be required as part of the performance review process. Decisions about hiring new employees, raising salaries, and other personnel activities can be informed by this documentation.

What is Included in a Performance Review?

An employee's job performance during a predetermined time period is assessed through a variety of components that are commonly included in a performance review. Depending on the organization, the particular items covered may vary, however some typical components of a performance evaluation include:

  • Goals and objectives - The review will often begin by revisiting the employee's goals and objectives that were set at the beginning of the review period. This helps to establish the criteria for evaluating the employee's performance.
  • Job responsibilities and duties - The employee's job responsibilities and duties will be evaluated to determine whether they are meeting expectations. This may include assessing the quality and quantity of their work, their ability to meet deadlines, and their adherence to company policies and procedures.
  • Competencies and skills - The employee's competencies and skills relevant to their job will be assessed. This may include areas such as communication, teamwork, problem-solving, leadership, and technical skills.
  • Feedback from others - The employee's manager may seek feedback from colleagues, subordinates, or customers to gain additional insights into the employee's performance.
  • Strengths and areas for improvement - The manager will identify the employee's strengths and areas for improvement based on their evaluation. They may provide specific examples of the employee's successes and areas where they could improve.
  • Development goals - The employee and manager may work together to establish development goals for the employee. These goals may focus on areas where the employee needs improvement or areas where they have expressed an interest in developing their skills.
  • Performance rating - Many organizations use a rating system to summarize the employee's performance. The rating may be based on a numerical scale or a set of categories such as "exceeds expectations," "meets expectations," or "needs improvement."

Successful performance evaluations are unbiased, equitable, and founded on quantifiable standards. They offer staff members options for professional growth and development inside the company as well as a clear grasp of their job performance and areas for improvement. And with an HRIS that is able to set up and run performance evaluations on a regular frequency without any errors running performance reviews can be very easy. OrangeHRM provides organizations to seamlessly automate their performance reviews so when the next cycle comes along you won’t need to do it all over again.