Performance Evaluation

Performance Evaluation -
Why Bother?
For the Benefits!

Performance evaluation can be a source of friction and abuse in the family business. It can cause stress, friction and lower morale. It can increase feelings of unfairness amongst employees and even managers. So, why bother with it? Let's look at the whole process to see if we can come up with an answer!

Who Makes It Work?

employee and manager are a partnership...
... working together to make it succeed

What Are The Key Elements of an
Effective PE System?

Clearly defined performance standards
An effective monitoring system
Regular discussions of performance
Development of appropriate action plans as a consequence of the appraisal

Where Do You Do It?

it is informal, except for the appraisal meeting that should be private and undisturbed to show respect for employee

When Does It Get Done?

it should be continuous throughout the year, on a regular basis
appraisal meeting should be scheduled, not delayed

It's FREE to
ASK THE EXPERT

Performance evaluation.
Reply within 48 hours.

http://www.family-business-experts.com/cms-form.html

How Do You Do It?

There are several steps, each of which must be done. We have found that performance evaluation usually fails because some [or most!] of the steps are not done, or are done poorly.

Planning

This might be the most important part of performance evaluation

reaffirm what is expected of employee - written job description identifies major functions
reaffirm the importance of employee to work unit and company's mission and goals
agree how performance can be measured - in specific terms not vague generalities
identify performance metrics - work not measured cannot be managed
identify and agree what tools and training are needed for the employee to perform as expected
reaffirm commitment of manager as partner to regular communication throughout the year

Ongoing performance communication

employee and manager have to meet regularly throughout the year to track progress
note what is going well and identify problems before they get big or out of hand
decide together what to do to solve problems
feedback must be as objective and specific as possible. Employee can't guess at what is wanted or whether they are doing the right things

Data gathering, observation and documentation

Some great tools...

Performance Review Package

Performance Improvement Package

Employee Handbook

Management "How To" Guide

as necessary to meet the goals and measurements that employee and manager have agreed upon

Performance appraisal meeting

NO SURPRISES - ongoing communication will have already identified what is going well and what is not

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So, Why Bother With Performance Evaluation?

Benefits! Benefits! Benefits!

Employee

knows why their job is important - to the customers, the company and their boss
sense of purpose - they know what they have to do and how to do it; they can work more independently

Manager

less time fighting fires
less stress
more time to plan and manage

Company

improved morale, less friction, improved productivity...
...all lead to improved profitability

Employee performance appraisals are only a part of the whole process, but very often it comes down to filling out a form and "laying it on" the employee at an annual meeting or sticking it in the mail box!

Family Business Experts Understands
Family Values and Business Systems

Performance evaluation can also reduce friction and stress and improve morale.
Let us help you find the best performance evaluation system for your family business - so you can enjoy the benefits!

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Employee Handbook