Employee Performance Evaluation Best Practices

A Methodology to Evaluate Employees Performance in Public Sector Organizations

Types of Employees Performance Evaluation?

What is Employees Performance Evaluation?

Employees Performance Evaluation is a thorough analysis of
the employees performance, by observing his work during a
certain period of time and examining all the objective
documents relevant to his performance, in order to
determine the extent to which employees achieve the
specified goals, which affects customers satisfaction as
shown in figure 1.
Employee's
performance
evaluation

The extent to
which
administrative
units achieve their
objectives

Identify and
develop strengths
and areas of
improvement

Performance evaluation is divided into four types as shown in

the figure below.

Matrix
evaluation

The extent to
which employees
achieve goals

Selfassessment
Achieving the
organization's goals

Increasing
customers'
satisfaction

Figure 1: Impact of employee performance evaluation on

increasing customers satisfaction

Figure 2: Objectives of employees performance evaluation

Types of
employees
performanc
e evaluation

Top-down
evaluation by
the employee's
direct
supervisor

Figure 3: Types of Employees performance evaluation

Top-down evaluation by the employees direct

supervisor: each employees direct supervisor evaluates
his employees performance; the employee retains the
right to inquire about the method and foundations of his
evaluation.

360-degree evaluation: the employee is evaluated by four

parties, not only by his direct supervisor. These are: the
direct supervisor, subordinates, co-workers and
customers.

Matrix evaluation: in this type of evaluation, the

employee is evaluated by different managers. The scores
given by managers are averaged to reflect the final
evaluation.

Self-assessment: the employee rates himself on the same

criteria used by the direct supervisor to evaluate him and
then the two evaluations are compared.

Why Employee s Performance Evaluation?

Provide employees with information on their performance

to encourage them to improve their performance
Raise morals and improve job relations
Increase the effectiveness of control and supervision
Identify training needs
Determine the appropriateness of employees for the jobs
Evaluate selection and training policy
A way to ensure fair treatment
Determine how to distribute rewards and incentives

360-degree
evaluation

The top-down and the self assessment approaches will be

discussed further, given that these two approaches are
common, easy and inexpensive compared to other evaluation
methodologies.

How to implement Employees Performance Evaluation?

1. Set performance
evaluation goals

2. Determine
performance
evaluation
mechanisms to be
used

3. Prepare
evaluation forms

4. Distribute
evaluation forms

5. Conduct
performance
evaluation and
collect data

6. Analyze data

7. Hold meetings to
discuss evaluation
results

8. Submit results to
management and
take the necessary
measures

Data collection methods.

Performance evaluation themes.

Time limits for evaluation.

Determine performance evaluation mechanisms to
be used

Evaluation by scores

This method is based on isolating the important

elements/ standards that measure employees
performance.

Scores are given to each element/ standard.

The direct supervisor gives the employee a score for each

element of performance evaluation.

Evaluation by objectives and results

This method is based on involving employees in setting

the objectives that should be achieved.

The employee is evaluated on the basis of the objectives

that have been achieved.

Support jobs are not evaluated using evaluation by

objectives.

Set performance evaluation goals

Evaluation goals affect the following:

Prepare evaluation forms

Foundations of performance evaluation by measuring

objectives and results
This mechanism involves setting the objectives to be achieved
by the employee at the beginning of each evaluation period
and follow them up to ensure achieving them. The following
are the foundations of performance evaluation according to
management by results and objectives:

Set objectives for each employee depending on the

departments strategic direction and the annual plans of
its departments.

The employees tasks and duties, as defined in his job

description, are considered.

The first category: includes the supervisory and leadership

positions.

The objectives are determined by the direct supervisor in

agreement with the employee.

The second category: includes the technical positions.

Objectives are determined at the beginning of each year.

It is possible to set objectives for more than one year,
provided that achievement rates and the desired results
for each year are determined.

Employee performance evaluation should include all job

categories, and appropriate mechanisms should be selected
for each category. To clarify this, only three categories were
identified, for the purposes of clarification and as an example:

The third category: includes administrative support position.

The following mechanisms are usually used:

When setting and formulating the objectives, the direct

supervisor should select specific, measurable, attainable,
realistic and timely objectives (SMART objectives).

The direct supervisor shall follow-up the objectives

periodically to ensure they are achieved in the expected
time frame.

Distribute evaluation forms

Employee performance evaluation involves distributing

evaluation forms to direct supervisors and the employees,
and the periodic review of performance evaluation system
and form to ensure efficient implementation.

Forms of performance evaluation by scores

Evaluation by scores is used in both self-assessment forms
and top-down evaluation by the direct supervisor. The
following steps show how to prepare the forms for
performance evaluation by scores:
First: determine the main themes
performance evaluation, which are:

Job performance

Job capacities

Job behavior

for

employees

Conduct performance evaluation and collect data

Data for the forms of each employee is collected, and the

process of collecting forms from the employees and their
direct supervisor is followed-up, within the specified time
limit.
6

Analyze data

Upon completion of the compilation of evaluation forms and

ensuring that all employee performance forms are filled out
completely, each employee is evaluated separately.

Second: determine performance criteria for each of the main

themes.
Examples of performance criteria for employees in the
first category for each of the main themes of employees
performance evaluation

Analyze performance evaluation data by measuring the

objectives and results
Evaluation data is analyzed by identifying the extent to which
each objective has been achieved and measuring the
performance indicator of each objective and then calculating
overall achievement in the evaluation period.
Performance evaluation by scores

Job performance

- Problem solving and decision

making
- Optimal use of resources
- Achieving the job objectives

Job capacities

- Work planning and distribution

- Leadership and supervisory skills
- Ability to quick understanding

First: evaluating performance levels for each of the

performance criteria

Job behavior

- Creating teamwork spirit

- Motivating and guiding employees
- Positive impact on others

Third: determine the weights of the employee performance

evaluation criteria.

Fourth: prepare evaluation forms.

Evaluation data for each of the categories covered by the

performance evaluation for both self-assessment and topdown evaluation is analyzed in the same way.

Performance levels are evaluated by expressing evaluation

levels (from 1 to 5) in their previously-determined real
weights; the level of the employees performance for each
performance criterion is calculated using the following
equation as indicated below:

Evaluation level = weight evaluation level

5

Second: evaluating employees performance in general

The overall performance of employees is concluded by adding
the evaluations of the main themes to evaluate the
employees performance. The table below shows how to
calculate the final evaluation result for the performance of an
employee:

Evaluation
elements

Weight

Evaluation

Rate

Job
performance

200

112

56%

Job capacities

340

264

77.6%

Job behavior

460

334

72.6%

Overall
performance
rate

1000

710

71%

Hold meetings to discuss evaluation results

A meeting between each employee and his direct supervisor

is held to discuss the results of self-assessment and top-down
evaluation. They discuss also how close the results of selfassessment and top-down evaluation are. If the gap between
the two results is big, the employee and his direct supervisor
should review their evaluations or submit the results to the
senior manager to review the evaluation process.
8

Submit results to management and take the

necessary measures

The final results are submitted to the departments

management to evaluate employees performance.
Performance evaluation results significantly affect the
following:

Annual pay raises.

Special rewards and bonuses.

Promotion and career progression.

Identifying training needs.

Moral incentives.