Performance evaluation: how to apply it in a business

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Performance evaluation: how to apply it in a business

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Leaders play an important role in maintaining a good relationship with their followers, in addition to contributing effectively to increasing talent retention.

Among the strategies adopted that allow a better understanding of the performance of employees, as well as bringing a broader view on the ways to develop the people of a team, the performance evaluation can be considered one of the main ones.

With this in mind, we have prepared this content, in partnership with Qulture.Rocks, so that you understand what performance evaluation is, how it can be applied in a business, in addition to checking what are the actions that can be taken from your results. Continue reading and learn more!

What is performance appraisal?

Performance assessment is a structured assessment of an employee's performance over a given period of time. Thus, leaders have inputs that contribute to the development of professionals, as well as enabling improvements in strategic decision-making involving people.

To understand about the evaluation, we will explain initialperformance management. It is a process that takes place in cycles: first, management sets expectations (goals, indicators, behaviors, competences, etc.). Over the months, the evaluation allows the closure of this cycle, bringing improvement strategies to the professional, in addition to the positive aspects of his work. giving rise to a new cycle.

What is the structure of a performance appraisal?

Normally, the performance evaluation will consist of a series of questionnaires, in which there will be questions to be answered by one or more evaluators. Among the points that must be evaluated, we highlight the behaviors and results.

What is the main difference between them? It is enough to think that results are “what” the employee does, while behaviors are “how” he reaches these numbers. They are dimensions of performance that form the backbone of a cycle, which allows measuring the performance of people for decision making, in addition to bringing inputs so that people can improve their performance.

In the case of behaviors, they are usually evaluated one by one, grouped in common themes. Example:

  • behaviors derived from company values;
  • behaviors derived from the technical skills of the position;
  • behaviors derived from the critical skills of the area.

As for the results, if the company is in an initial process of applicability of the performance evaluation, it is possible to evaluate, for example, the responsibilities and activities defined in the job description, through indicators.

How to apply performance evaluation?

Below, we explain a little more about how to apply performance evaluation in your company. Check out!

Manager's evaluation

In the manager's assessment, some practical questions can be asked in relation to the work performed by the team member.

What can the team member improve (results and behaviors)?

Here, an analysis is made of what is not going well, how it negatively impacts the professional, in addition to suggesting clear and objective changes. Consequently, these points are transformed into action plans, so that the person understands how it negatively impacts himself, the team and the company as a whole.

What is the team doing well?

By the same logic, the manager identifies positive points about what the team is doing well, highlighting characteristics that contribute to the development of the person, the team and the company. In addition, there is the possibility to encourage professionals to transmit this knowledge, replicating good strategies for different people and areas.

What should be the priorities for the coming months?

Based on the previous answers, the leader, together with the team member, has the possibility to define strategies for the coming months, both related to deliverables and to the person's results and development.

A good way to complete this strategy is through OKRs. It is a system of collective and individual goals, which converge to the global goals of a business. Through the performance evaluation diagnosis, the manager can define OKRs or projects that the team member can develop so that the company gets closer to the desired results.

Self-evaluation of performance

Self-assessment of performance is optional. Its objective is to bring self-knowledge to the team member in relation to the process, in addition to stimulating reflection in relation to its development and the strategies adopted over the months. The questions may be similar to the previous ones, such as:

  • what were the main results achieved?
  • What can the team member improve for the coming months?
  • What are the points that the team is doing well?

9-Box

The 9-Box is a visual talent mapping tool that will contribute to people's decision making, mainly related to promotions, layoffs, salary increases, necessary training, among other points.

Its most common use is by plotting talents in a matrix, whose axes are: delivery of results and employee potential.

As for the potential, its classic use is given by the professional's skills assessment. As for competences, it is necessary to divide them into degrees of complexity. That is, the greater the position, the greater the responsibilities assigned to that person.

Thus, when assessing the person's skills in relation to what is expected, we can infer some points:

  • if he exceeds expectations for his position;
  • if he has the potential to take on a more complex job.

The 9-Box can be used by the company in different situations:

  • when there is a need to make complex decisions – creation of internal mobility vacancies, or training programs that cannot serve all interested employees;
  • when it is necessary to offer leadership training for the company – through the 9-Box, there is the possibility to identify which are the leaders that need to be developed, or people who are able to perform these functions.

How to use performance evaluation to improve the relationship with professionals?

Performance evaluation, as we have seen, brings data for different types of company decision making. For this reason, understanding the best practices to improve the relationship with professionals will contribute to an even more effective use of the strategy. Crossing data with other actions, for example, will make this issue possible.

Organizational weather research

First, let's go to the meaning of organizational climate. In a simplified way, we can understand that it refers to the perception of employees in relation to the company's processes, policies and practices. To obtain this understanding and outline actions that bring improvements to the climate, a survey must be applied to employees.

Her results alone are just a diagnosis. The next step is to establish strategies and monitor whether the modified points have brought improvements to the climate and, if so, whether they have brought direct results to the company as a whole.

How is this closely linked to performance appraisal? Through the 9-Box, management has the possibility to identify the people who stand out most in their team. That is, they are the high-performers, those who contribute most to the positive numbers of the organization.

Thus, it is necessary to be concerned with the retention of these talents. In other words, by applying the climate survey to this group of professionals, the teams can understand the perception of employees and draw up plans that bring improvements in this regard.

Feedbacks

Feedback is the process in which an employee contributes to the development of another person based on their own perceptions, whether negative or positive. From the diagnosis of the performance evaluation, there is the possibility of drawing up an action plan that contributes to the better development of the employee.

But just understanding what the stages of this plan will look like is not enough. It is necessary to monitor its progress, so that the person finds more appropriate actions to achieve the results of the strategy.

To understand the importance of this practice, we always bring the analogy of a paper map and a GPS. Both offer the final destination. However, the GPS guides the individual along the way, so that he is directed in a simpler way to the intended results. The more feedbacks, the better the development of the employee and, consequently, the company.

One-on-ones

Your company already practices one-on-ones? They are periodic meetings between leaders and followers, which enable a better flow of information from the bottom up. Among the positive points of this practice, we can highlight:

  • improvements in the flow of information from the bottom up;
  • feeling of belonging on the part of the employee;
  • perception that the company is concerned with its development; among others.

In this sense, through these meetings, the leaders have the possibility to closely monitor the development of the action plans, contributing so that the pre-established results are successfully achieved.

In this content, you could understand what a performance evaluation is, in addition to checking how it contributes to the good relationship with the employee. If your organization does not yet adopt a strategy, you run the risk of low maturity professionals, in addition to not having an alignment between the expectations of both parties (professional and company).

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