Performance review (or performance evaluation) is an essential process to analyze how effectively human resources are used for meeting company’s business goals as well as access how well each employee is utilizing their potential. Approaches to performance review vary from organization to organization; some see it as an ongoing, regular process while the others conduct the review by occasion with a specific purpose in mind (i.e. mergers, changes in the organizational structure, opening of a new department, etc.). 

How employees benefit from performance reviews

After the review, each employee gets objective and measurable evaluation of their performance and attitude towards work. The results of review are used to create employee development plans, set career goals and improve performance if it’s not up to the required standards. In its turn, while setting personal goals which will benefit to the organization in general, employees feel the significance of their contribution and involvement, and this increases their level of job satisfaction.   

What’s in it for the organization

To cut the long story short, reviewing employee performance is imperative to keep control over the company’s human resource processes. Dynamics of evaluation results demonstrates the efficiency with which human resources are used and developed to allow the management to reward top performers and modify the HR policies if necessary.  


•    Self-review
Without downplaying the significance of manager’s review, it’s important to hear the employee’s voice too. The self-review process involves answering the questionnaire items to evaluate performance, competences and attitude. It is usually followed by a performance interview with a manager to discuss the problem aspects of work and determine the strategy for growth. 

•    360-degree review
When the assessment is conducted by one person, it’s difficult to get a complete picture of employee’s performance. That is why this method so popular with the companies from diverse industries – it assumes collecting feedback from coworkers, managers, subordinates, etc. Various types of people an employee deals with during the working process form the comprehensive profile of not only skills and knowledge, but also behavior and interpersonal skills. 

•    Management by objectives
Sometimes employees might feel negative about the review process because the performance standards are too high or aren’t properly defined by management. To avoid misunderstanding, use method of management by objectives. Working closely with manager, an employee should develop measureable, specific goals to be achieved within a set deadline. This method makes it easier to work towards the goal as the employee knows what the success looks like. 

•    Probationary review
How to find out whether the prospective employee will be performing at a level expected from them and fit the organizational culture? To minimize the wrong hires, people are often employed on probationary terms first.  During this period, usually lasting from 3 to 6 months, employee’s adherence to performance standards and personal traits are monitored to make the final hiring decision.  

•    Graphic rating scale
This method has gained popularity due to its simplicity and adaptability to access performance regardless of the position level and industry. It is used to evaluate the quality of employee’s work (usually on a scale from unsatisfactory to outstanding), but the assessment can also be trait-centered (i.e. it can cover employee’s adaptability, autonomy or reliability).

Each of the above methods is helpful in assessment of employee’s performance; however, the combination of two or more methods will ensure more accurate and objective results. The review process is only the first step, though – it should be followed by a meaningful conversation between the employee and manager to discuss noticeable performance issues and create an employee development plan.

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