Performance Appraisal in organizations: what is its importance?

Closely monitoring the work of the employee, observing their behavior, listening to what they have to say, valuing their initiatives… These are some of the many points analyzed in the Performance Appraisal process.

Fundamental for any company that wants to evolve and remain competitive in the market, the Performance Assessment can be the first step towards that. Below, we at Metadata — a company that develops a complete  Human Resources System  — highlight the importance of maintaining the  Performance Assessment process  in organizations and its advantages. Check out!

Performance Assessment in organizations: what is it?

The performance evaluation  measures the performance of people in relation to the attributions they have, verifying the level of alignment of their performance with the results expected by the company . It is a systematic, periodic and documented process that measures strengths and points to be developed.

But this entire process needs to be properly  structured, with clear rules and criteria , serving as a complementary instrument for the people management process, since it directly implies, among other things, the development processes. For this, it is essential that it is integrated into the strategic guidelines of the organization, its values ​​and its objectives.

The performance evaluation methodology and criteria may vary by organization learning management. The important thing is that the rules are clear to everyone. In this process, the manager needs to be attentive, seeking to highlight strengths, identify points for improvement and training needs, among other factors. Thus, it can balance the goals established by the company with the employee’s own expectations, in order to keep the system working in harmony. The  continuous monitoring of the leader  with his team and the  involvement of employees in the process  as a whole are  essential factors for achieving the objectives proposed by the evaluation .

Performance appraisal should not be a periodic reckoning process. That is why, in parallel with performance appraisal (formal and documented process), there is another very important practice that is sometimes confused with performance appraisal: feedback. It occurs informally, without the need for documentation or periodicity, and it is recommended that it be constant.

Feedback allows the establishment of a relationship of trust between the leader and the person being led , it makes those evaluated want to invest even more in their development, improving their performance and bringing advantages to themselves and to the organization.

Performance appraisal and feedback can bring many benefits and positive changes to the people management of an organization, whatever its size. With it, the manager can change the work climate, invest in training, development and improve productivity.

Benefits of performance appraisal

  • – Clarify the expected results of employees;
  • – Constantly guides employees on their performance, seeking to develop their skills;
  • – Enables the survey of training and development needs, as well as the identification of new talents within the company;
  • – Improves the relationship between managers and employees;
  • – Transmits transparency in actions;
  • – Contributes to improving the working climate.

How to implement performance appraisal

For the company to be able to implement the Performance Appraisal as a continuous process of improvement, it must follow some steps. Below, we list the ones we consider essential, check them out:

  • Internalize the culture of people management:  This is perhaps the most challenging step in the performance appraisal implementation process. Every company that wants to start managing people needs, first of all, to internalize this culture; make management, management and employees understand the importance of continuous improvement processes. Therefore, HR will need to impose itself, show value in its project and, of course, results after implementation.


  • Build  performance evaluation indicators :  the second step is to have defined the indicators that will guide the process. It will be through this measurement that the management will have proof of the project results. Be bold, innovative and insightful when building your indicators.


  • Apply, review and improve, always:  like any process, performance evaluation will always need improvement. So, after applying the assessment, review what went well, if there are any improvements and make them. A suggestion is to talk with managers, employees and even with the direction so that there is a consonance. Remember: reviewing the process is part of the process.


  • Evaluate, train and train your teams:  you may already be imagining that it is not enough just to apply the performance evaluation, it is necessary to continue the process, training and qualifying the teams according to the  result of the evaluation , right? Very good! This is another critical step to the success of your performance appraisal.


  • Use technology as your ally:  this whole process doesn’t have to be done by hand. There are already technological tools developed for this. Through them, you can monitor performance evaluations, deadlines, results, training and other processes. Look for the one that best fits your reality and start evaluating your company’s performance now.