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What Is Employee Performance?

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  • 0:00 Employee Performance
  • 0:43 Employee Performance…
  • 2:02 Training & Development
  • 2:52 Promotions & Reassignments
  • 3:31 Lesson Summart
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Lesson Transcript
Instructor: Donna Swarthout
The success of any business is closely tied to the job performance of its employees. Learn about the management of employee performance, including training, development and appraisals.

Employee Performance

Your success at work will further the success of the organization for which you are employed. But what is the meaning of success and how does a business measure it? Managers must first hire employees with the right skills and qualifications for the job. Once the hiring process is complete, managers seek to ensure that an employee's work is closely aligned with the organization's goals and objectives.

To achieve strong employee performance, managers conduct employee performance appraisals, implement training and development programs, and decide when to promote and reassign employees. Let's look at each of these features of managing employee performance.

Employee Performance Appraisals

You may have participated in a performance appraisal for a past or current job. A performance appraisal, also called a performance review, is an evaluation of an employee's work based on a set of specific criteria or standards.

The performance review generally looks back at an employee's performance over the past year and involves setting new plans and goals for the year ahead. When you accept a new job, you will want to be sure to have a clear understanding of the performance standards for your position to avoid any surprises when you sit down for your first performance review. It's always a good idea to prepare for a performance review by evaluating your own job performance ahead of time.

A performance appraisal is usually a face-to-face meeting between a manager and an employee. However, some businesses broaden the appraisal process to include other stakeholders. For example, a 360-degree review provides an employee with feedback from superiors, peers, subordinates, and even outside parties, such as customers and vendors. A broader employee review process can uncover areas for improvement that the manager and employee had not identified. It's important to provide guidelines to the participants in a 360-degree review to ensure a fair and accurate review process.

Training & Development

Even highly qualified new hires benefit from orientation, training, and development programs designed to help them meet performance goals. Whereas training activities help employees improve their current job performance, development activities focus more on preparing employees for future roles and responsibilities. Rapid changes in regulations, technology, and consumer preferences require most businesses to have ongoing employee training and development programs.

Training and development efforts help employees gain the knowledge and skills they need to stay current in their fields and help a company maintain a competitive edge. Managers may conduct a needs analysis to ensure that training and development activities are matched to employee skills and job duties. No one wants to attend a training that is unrelated to their performance goals.

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