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Performance evaluation is a tool that helps managers align individual performance with organizational goals and objectives. You saw that the tool is most effective when evaluation includes well-developed goals and objectives that are developed with the needs of both the organization and employee in mind.
The main objective of performance management is to enhance the: Achieving individual employee goals of employees along with organizational objectives. Also, enhance the skills and personal development of employees through the managers' help. Additionally, encourage work that helps in fulfilling business goals.
Performance appraisal is a systematic process for evaluating an employee's performance. It is conducted to evaluate and maintain standards, to determine the extent to which employees are meeting the expectations and objective goals set by their managers, and as a means to improve organizational processes.
Setting hard goals increases an individual's persistence and thus transfers effort into commitment and motivation. This ultimately leads to increased performance, especially if the goals are set at a high level and are accepted by employees.
Management By Objective (MBO) This process involves the employee and manager working as a team to identify goals for the former to work on. Once the goals are established, both parties discuss the progress the employee is making to meet those goals.
An objective performance measure is a method of evaluating how well an individual, team or organization accomplishes tasks or goals. It's also known as key performance indicators (KPIs). Departments within an organization often set specific KPIs for employees relevant to their activities.