Abstract
This chapter seeks to define and analyse performance evaluation, which are the methods used by organizations to evaluate the performance of employees and their limitations. Based on a qualitative methodological approach, the interview survey was used as a research tool. The results presented demonstrate that motivation and performance are very present in the organizations addressed, although the stipulated evaluation methods differ from organization to organization, as well as the implications and limitations that may arise from performance evaluation.
TopIntroduction
Currently, Human Resource Management is considered one of the most important areas for an organisation because its main objective is to ensure the sustainability of the organisation, especially in the development of People Management or in the search for a balanced organisational climate that enables teamwork, facilitating communication and integration among all stakeholders and, on the other hand, it seeks to ensure that all elements of the organisation are able to perform their functions effectively and demonstrate motivation and work performance (Beck et al., 2014; Dias & Paraíso, 2011). Human Resource Management is more focused on the employee because it aims to identify the employee's professional skills, the goals to be achieved, as well as the objectives set out. In this sense, we can say that the Human Resources area aims to guide all tasks and policies involving professional skills and the engagement of each element of the organisation to achieve the expected results.
One of the areas analysed by the Human Resources Management is the employee's performance and how it is ensuring the business success, for example through recommendations for behavioural improvement, as well as suggestions for organisational improvement (Pfeffer, 2007; Topcic, Baum, & Kabst, 2016; Dias & Paraíso, 2011).
Reward management system is a core role of human resource management. Besides, it has an important function on job outcome. Remuneration reward system have most important impact on organizations capability to hiring, retain and motivate high potential employees and as a result getting the high levels of performance (Agustiningsih et al. 2016; DeNisi & Murphy, 2017). Remuneration reward system is usually applied to motivate employees so that they perform better, are more productive, don't leave the organisation, establish a service oriented behaviour, and avoid corruption. Remuneration can be in the way of salary, fixed allowances, variable allowances, incentives and other facilities. Remuneration is the total compensation received by the employees in return for the services that they have done (Sun, Aryee, & Law, 2007; Wright, Gardner, & Moynihan, 2003; Agustiningsih et al. 2016).
It is pertinent to evaluate, and consequently reward employees through the merit of results achieved and this will only be possible through Performance Evaluation. Thus, this study aims to explore the Human Resources practices and its importance for the organisation, and on the other hand, to analyse and interpret how the performance and motivation of employees in an organisation are evaluated, to define some of the existing evaluation methods, and finally, to verify the possible implications or gaps that may arise in the performance evaluation for employees and for the organisation itself, aiming to minimise its effects (Beck et al., 2014; DeNisi & Murphy, 2017).
Key Terms in this Chapter
Human Resources Performance: It describes the measurement and assessment of the efficacy and efficiency of the Human Resources function within a company. It entails evaluating the degree to which Human Resources initiatives and tactics support the overarching organizational goals and objectives. Employee satisfaction, retention rates, the success of recruitment, the results of training and development, and the effectiveness of Human Resources operations are common criteria used to assess the performance of Human Resources. To improve organizational performance, employee engagement, and overall success, Human Resources practices are to be optimized.
Assessment methods in Human Resources: They are used to gauge the performance, potential, and potential of employees and job prospects. Performance reviews, psychometric testing, skills evaluations, behavioural observation, interviews, assessment centres, portfolio or work sample reviews, and peer evaluations are a few examples of these techniques. These evaluation techniques are used to acquire trustworthy and valid data that can be used to influence decisions about employee development, hiring and placement, performance management, and other Human Resources -related procedures.
Performance Evaluation: It is also referred to as performance appraisal or performance review, is a methodical procedure for gauging a person's effectiveness on the job and contribution to the organization. The appraisal of a worker's abilities, successes, and behaviours in light of established performance standards and objectives is a part of this process. A formal evaluation report or rating is frequently produced as a result of performance evaluations, which are frequently carried out using a combination of feedback, assessment, and documentation. Performance evaluation serves a variety of purposes, including giving feedback, highlighting successes, pointing out areas for development, assisting in making educated judgements about awards and promotions, and coordinating individual performance with organizational goals.