What Is a Performance Review? - Examples & Explanation

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  • 0:04 What Is a Performance Review?
  • 0:27 Key Concepts
  • 1:12 Example
  • 2:12 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley

Shawn has a masters of public administration, JD, and a BA in political science.

Most employees are subject to performance reviews. In this lesson, you will learn about performance reviews and some of their key concepts and be provided some examples.

What Is a Performance Review?

A performance review, also known as a performance appraisal, is a tool to measure and assess employee efficiency and effectiveness. Managers can use a performance as a rational and objective basis to determine whether further training is required, a wage or salary increase is warranted, or an employee should be promoted to a higher-level position.

Key Concepts

A performance review ideally involves three steps. First, the manager and employee should sit down and clearly define job duties and expectations of job performance so that they're both on the same page. Second, the manager should conduct the performance by comparing the employee's performance against the standards and expectations developed in the first step. And, finally, the manager should provide the employee with feedback about his or her performance in light of the established standards and expectations. Based on the appraisal results, the manager might recommend the employee get further training or that the standards and expectations be modified. He or she also might recommend a pay raise or promotion for the employee.


As an example, let's say you're a manager at a production facility where you manage the first shift of production workers on an assembly line. You meet with your employees and explain the company's expectations regarding productivity and efficiency standards such as units completed per hour and error rates. You invite employee input and confirm that all employees understand the performance standards they need to meet.

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