problem solving performance evaluation

300 Performance Review Phrases in 20 Areas of Work

Performance review season is a stressful time of year. As a leader, it can be a struggle for you to properly describe a behavior exhibited by an employee, so we tried to make it easier by listing over 100 performance review phrases below. They are grouped by category to make it easy to find inspiration and not get in trouble with HR.

Two pieces of advice before you get started:

At Friday, we make it easy to have regular conversations, so you don’t have to bottle up your feedback for a review and performance appraisal that happens once a year.  See our playbooks  for success. You should not delay important conversations. We strongly recommend having regular  1-1s  and establishing a feedback loop. Don't kick the can down the road.

Second, please make sure when completing a performance review that you  outline behaviors, not personality traits . Behaviors can be changed. Also make sure you document the behavior. Ideally, you bring it up in-the-moment vs. a performance review.

With the disclaimer out of the way, here's a list of canned performance review phrases to give you some inspiration. For the love of everything, please don't copy these phrases verbatim.

You owe it to your employee to put some time into this process and consider their overall performance. If you want to learn how to effective run a performance review, you should read  High Output Management .

Before we dive in take a look at these performance review templates !

Active Listening

1. Is an active and focused listener

2. Makes sure the team feels heard

3. Creates healthy dialogue to help the best solution come forward

4. Listens with an open mind

5. Demonstrates a sincere appreciation for opposing viewpoints

6. Actively seeks feedback, even when it’s not in agreement

7. Asks insightful questions to understand the root cause

8. Empathizes with others who have opposing viewpoints

9. Follows instructions with care and attention

Needs Improvement

10. Asks questions that show he/she is not actively listening to the conversation at hand

11. Is distracted easily and doesn’t fully absorb another person’s point of view

12. Interrupts peers

13. Constantly interjects into conversations

14. Dismisses other people’s ideas who she/he doesn’t agree with

15. Stops listening when presented with an opposing viewpoint

Administration

16. Is effective when handling large amounts of data 

17. Produces high-quality work that is well documented and detailed
 

18. Is capable of working independently from day one

19. Is a strong team player
 

20. Is well organized, and can effectively implement projects from start to finish
 

21. Can make independent decisions when necessary
 

22. Demonstrates good time management skills
 

23. Can adapt his/her schedule to meet the needs of the business
 

24. Has excellent follow-through skills, and is always on time with deliverables 

25. Shows ability to be proactive in identifying tasks that need to be completed 

Areas for Improvement 

26. Does not show an aptitude for number crunching and data entry activities 

27. Has difficulty following through with tasks that require a high amount of organization and time management 

28. Seemed to have trouble getting organized this week
 

29. Demonstrates disinterest in the administrative aspects of the job 

30. Has trouble with filing, record keeping, and other administrative tasks


31. Is less than eager to complete documentation-related work
 

32. Is often late, which negatively impacts project completion timelines

Attendance & Being On-Time

33. Is punctual and consistently on-time to meetings

34. Arrives at meetings on time and is always prepared

35. Attained perfect attendance over $time_period

36. Schedules time-off according to company policy

37. Completes deadlines as promised

Areas for improvement

38. Does not meet attendance standards for punctuality

39. Has exceeded the maximum number of vacation days allotted

40. Is frequently late to work

41. Does not return communications in a timely manner

42. Is a quick study 

43. Learns from mistakes 

44. Is willing to hear constructive criticism 

45. Accepts coaching well, and does not become defensive when given negative feedback 

46. Takes responsibility for own mistakes and failures 

47. Demonstrates a willingness to improve performance in the face of negative feedback 7. Asks questions about the most effective way to approach new activities 

48. Asks for clarification when he or she is unsure how to correctly complete a task or activity 

49. Demonstrates self-awareness and willingness to improve in areas where he or she is lacking 

50. Is sensitive to the fact that there is always room for improvement, both personally and professionally 

Areas of Improvement

51. Seeks individual coaching only when an area of weakness has been identified by someone else 

52. Demonstrates lack of awareness regarding his or her own deficiencies as a team member or employee 

Communication

53. Regularly gives constructive feedback

54. Is willing to entertain others ideas

55. Asks great questions

56. Explains tough issues in a way that is clear to the rest of the team and direct reports

57. Is not afraid to say “I don’t know” when presented with a tough question.

58. Is effective at summarizing and communicating key business decisions.

59. Stands out among his/her peers for outstanding communication skills

60. Is effective at persuading and convincing peers, especially when the stakes are high

61. Is an effective listener, always willing to listen and understand peers objections

62. Makes new employees feel welcome

63. Acts as a calming force when the team is under pressure

64. Blames others for problems

65. Complains of lack of resources to adequately complete job functions

66. Fails to alert proper personnel regarding bad news

67. Regularly engages in off-putting conversations, can be territorial at times

68. Humiliates staff members on a regular basis

69. Has trouble communicating effectively in groups

70. Has other coworkers deliver bad news instead of doing it himself/herself

71. Makes others feel intimidated when working on company projects

Cooperation

72. Is easy to work with, and encourages others to work together as a team 

73. Is supportive of coworkers, even in the face of conflict or adversity 

74. Supports group decisions even when it is not his/her preferred course of action 

75. Fosters a cooperative atmosphere 

76. Is a team player who does not put personal goals ahead of the greater good of the group 

77. Is receptive to ideas from peers and willing to adapt his/her own behaviors in response

78. Frequently expresses frustration with coworkers when they are too slow, or do not complete their tasks in time for the next project phase to begin on time 

79. Frequently comes late to meetings and disrupts workflow for other workers 

80. Takes credit for the work of others, especially when it is not deserved 

81. Does not share information with colleagues if they do not ask for it directly 

82. Thinks outside the box to find the best solution to a particular problem

83. Is creative and finds ways to correlate ideas with action

84. Artfully changes when presented with new information and ideas

85. Is always willing to directly challenge the status quo in pursuit of a more effective solution

86. Contributes fresh ideas regularly

87. Encourages coworkers to be inventive

88. Contributes innovative ideas in group projects

89. Contributes suggestions regularly on how to improve company processes

90. Demonstrates disinterest in contributing creative or innovative ideas

91. Is rigid and unwilling to adjust when presented with new information

92. Fails to properly attribute coworkers who contribute innovative solutions

93. Seems unwilling to take risks, even when presented with a compelling reason

94. Fails to incentivize peers to take creative and innovative risks

95. Is reluctant to find more effective ways to do job activities

Customer Relations

96. Works effectively with clients

97. Has strong rapport with those he/she interacts with

98. Enjoys the people related aspects of the business

99. Is pleasant and projects a friendly tone over the phone

100. Has become a linchpin with clients

101. Consistently spearheads effective customer relations

102. Is empathetic towards customer issues

103. Is direct, yet helpful in dealing with customer concerns

104. Displays an effective cadence when working with clients on projects. Is effective, not overbearing

105. Artfully helps customers overcome objections

106. Can handle difficult customers with grace

107. Consistently receives substandard comments from customers

108. Appears disinterested in helping customers with their challenges

109. Does not manage customer expectations, especially in tough situations

110. Consistently passes challenging issues to others instead of tackling them head-on

111. Misses opportunities to further educate customers about other products or services.

112. Uses inappropriate language with colleagues or customers

113. Appears to become frustrated by clients who ask questions

114. Displays sarcasm when dealing with client challenges

115. Is a good delegator, even with those who don't report directly to him/her 

116. Is able to delegate tasks and responsibilities effectively to appropriate team members 3. Is able to delegate work without micromanaging 

117. Is able to delegate work while maintaining the vision of what is to be accomplished 

118. Is able to delegate work to teammates without fear of losing control 

119. Demonstrates trust in subordinates, allowing them the freedom to make decisions 

120. Designs delegation strategies which provide opportunities for staff members to grow and develop 

121. Seems unwilling, or unable, to give up control of work activities completely when delegating tasks

122. Appears hesitant about allowing subordinates the freedom needed in order to complete delegated tasks successfully 

123. Does not seem confident when delegating tasks or responsibilities; does not inspire confidence in subordinates when delegating work

Flexibility

124. Constantly identifies more efficient ways of doing business


125. Is accepting of constructive criticism


126. Is a well-versed team player capable of handling a variety of assignments


127. Is calm under pressure


128. Is a calming force, especially with [his/her] peer group


129. Shows initiative, and is flexible when approaching new tasks

130. Does not excel at activities which require a high degree of flexibility

131. Tends to resist activities where the path is unknown

132. Appears uninterested in new duties

133. Becomes uptight when the plan changes

Goal-Setting

134. Is effective at goal-setting and challenging oneself

135. Clearly communicates goals and objections to coworkers

136. Is constantly striving to be the best he/she possibly can be

137. Sets concrete and measurable goals

138. Sets aggressive targets to meet business objectives

139. Creates clearly defined goals that align with the company’s mission

140. Proactively shares progress on goals

141. Is inconsistent in defining goals and objectives

142. Struggles to set goals that align with company objectives

143. Sets performance goals that are out of touch with reality

144. Struggles to communicate when deadlines will be missed

145. Leaves peers struggling to understand the status of a project

146. Refuses to delegate to others, attempts to do all the work by himself/herself

147. Is unwilling to claim responsibility for missed goals

148. Is easily distracted and disinterested in focusing to achieve performance goals

149. Finds creative ways to solve problems and improve processes 

150. Is an idea generator, and finds innovative ways to accomplish tasks 

151. Contributes new ideas to team project discussions regularly 

152. Contributes new ideas at staff meetings  

153. Contributes well-thought out suggestions for company improvements 

154. Evolves process improvement ideas in staff meetings 

155. Thinks outside the box when presented with a new challenge

Areas of Improvement 

156. Tends to react negatively when presented with a new problem or challenge which requires innovative thinking 

157. Fails to offer new solutions even when presented with a compelling reason to do so 10. Has difficulty coming up with creative ideas, even when prompted by supervisor 

158. Fails to recognize that all employees should contribute innovative ideas for improvement of company procedures and processes

Create improvement plans with 30-60-90 day templates !

Interpersonal skills

159. Is a good communicator with [his/her] peers, requiring little or no direction in how to communicate 

160.Is a strong team player who thrives on teamwork 

161. Has the ability to diffuse conflict among peers 

162. Has the ability to resolve emotional situations quickly and efficiently 

163. Is able to hear and accurately interpret verbal and nonverbal cues from peers

164. Has the ability to diplomatically handle difficult situations with peers 

165. Has the ability to ensure that [his/her] peers are satisfied with a decision made by a superior

166. Is able to effectively communicate across cultures, geographical regions, etc.

167. Utilizes peer feedback to make improvements in [his/her] interpersonal skills 

168. Is an active listener that is sensitive to both verbal and non-verbal cues from peers 22. Has the ability to approach every situation with confidence 

169. Fails to appropriately respond when receiving negative feedback from coworkers 24. Fails to ask for clarification if [he/she] does not understand what a coworker is trying to tell [him/her] 

170. Does not use constructive criticism from peers in an effort to improve performance at work or in school

171. Does not take initiative or act on positive suggestions given by coworkers68. Uses abrasive language when interacting with peers

172. Displays defensiveness when receiving constructive criticism

173. Appears uncomfortable when asked questions during group discussion

174. Shows sound judgment when evaluating multiple opportunities

175. Comes to reasonable conclusions based on information presented

176. Is fact-based, and refuses to accept emotional arguments when evaluating a decision

177. Remains calm, especially under stress

178. Balances swift decision-making, with the ability to analyze the many angles to a story

179. Is confident and persuasive when making big decisions

180. Consistently understands the core issues at play, enabling him/her to solve problems at a remarkable pace

181. Makes confident decisions when presented with facts and data.

182. Effectively prioritizes urgent matters with those that can wait

183. Effectively outlines the best case (and worst case) scenarios to aid decision-making

184. Makes hasty decisions without first collecting facts & data to inform the decision-making process

185. Consistently displays analysis paralysis when making a decision

186. Makes big decisions without approval from respective parties

187. Is unable to keep confidential information private

188. Approaches decisions with a one-track mindset. Has a “my way or the highway” view of others ideas.

Leadership Ability

189. Is a servant-leader, always willing to help his/her team

190. Gives structure, feedback, and direction to his/her team

191. Consistently recognizes his/her team for a job well done

192. Actively listens to his/her team

193. Creates a culture of dialogue

194. Recognizes staff for a job well done

195. Provides just enough conflict to find the best outcome

196. Balances the strategy of the organization with tactical day-to-day tasks

197. Demonstrates a high bar for ethical behavior

198. Tends to overanalyze problems when a prompt decision is required

199. Fails to plan for the future

200. Sends mixed signals to the team regarding goals and day-to-day activities

201. Rarely gives recognition to his/her team

202. Sets an unreasonably high expectation for his/her team

203. Fails to keep confidential information secret

204. Plays favorites and does not treat each member of the team equally

205. Shows interest in learning new skills and expanding knowledge base 

206. Is willing to take risks to gain new skills and knowledge 

207. Consistently seeks out professional development opportunities 

208. Demonstrates a desire to learn from peers rather than simply teaching them 

209. Is able to learn from past mistakes 

210. Consistently seeks out new experiences 

Needs Improvement 

211. Rarely uses past experience as a guide for decision making in new situations 

212. Does not appear willing to take risks to gain new skills and knowledge 

213. Fails to understand the value of taking risks to gain new skills and knowledge 

214. Has difficulty accepting criticism 

215. Does not like to be told what to do, when, or how to do it

Management skills

216. Is self-motivated

217. Manages time well

218. Sets attainable goals and objectives

219. Is able to effectively prioritize amongst competing demands

220. Is a good negotiator, able to get people to agree to new ideas or actions

221. Communicates clearly and delivers messages in concise, effective ways

222. Recognizes the contributions of peers and subordinates

223. Assigns challenging but appropriate tasks to staff, and provides adequate resources to ensure successful completion of assignments

224. Has difficulty being firm when needed with staff who are underperforming or inefficient 

225. Fails to reward subordinates for hard work or for delivering results on time 

226. Perceives subordinates as too personal and not business-like in their approach to work relationships 

227. Views employees as a cost center rather than an asset for the company's future growth and profitability

Motivation & Drive

228. Constantly pursues learning opportunities

229. Consistently takes on additional responsibility for the team

230. Successfully finds more effective ways to perform a specific task

231. Is constantly looking for new ways to help the team

232. Is always willing to jump in and learn something new

233. Requires little direction when given a new responsibility

234. Is not afraid to take calculated risks

235. Is not afraid to make periodic mistakes

236. Is unwilling to assume responsibilities outside of his/her job description

237. Frequently sows seeds of doubt with the rest of the team

238. Resists opportunities to train and learn new things

239. Contributes few suggestions to projects with ambiguity

240. Can be overzealous, stepping on others’ toes

241. Seems unwilling to learn new things

242. Struggles to do tasks without assistance from peers

243. Is a careful planner, and always considers the end result of [his/her] actions

244. Creates detailed plans to ensure [his/her] work is done efficiently and effectively 

245. Does not leave any loose ends when completing assigned tasks

246. Is able to accurately predict the outcome of [his/her] actions 

247. Is an effective time manager 

248. Sets realistic deadlines for [his/her] work, and does not procrastinate 

249. Does not waste time, and completes [his/her] work efficiently 

250. Is organized, and keeps notes or files with information that may be needed in the future

251. Has difficulty deviating from a previously established plan when new information is revealed 

252. Does not demonstrate much concern for the long-term effects of [his/her] decisions 11. Is slow to start working on an assignment until all details are ironed out 

253. Has difficulty making quick decisions under pressure 

254. Waits until last minute to begin work on an assignment, and becomes stressed during crunch time 

255. Appears disorganized, even though [he/she] is very organized in reality 

256. Appears to lack organization skills in front of peers and upper management 

257. Is unable to prioritize tasks appropriately based on urgency and importance 80. Is constantly late with assignments and projects 

Problem-Solving Skills  

258. Sees problems as challenges to be overcome

259. Brings ideas to the table when discussing problem-solving 

260. Is able to pressure test his/her own ideas in a calm but assertive way 

261. Is able to persuade others that [his/her] solutions are the best course of action 

262. Is able to persuade others with [his/her] ideas 

263. Sets up a system for tracking problems and their solutions 

264. Uses a variety of techniques to solve problems, and is willing to try new approaches 8. Puts in extra time to ensure that problems are solved completely 

265. Is able to explain the rationale behind [his/her] solution to a problem 

266. Demonstrates effective leadership skills when solving group problems 

267. Demonstrates disinterest in pressure testing ideas with others 

268. Does not set up a system for tracking problems and their solutions 

269. Fails to take action when a problem is raised 

270. Fails to explain the rationale behind [his/her] solution to a problem 

271. Does not optimize use of time when working on difficult problems 

272. Does not solve problems in an efficient manner 

273. Is not adept at persuading others to buy into [his/her] ideas 

274. Fails to persuade others that [his/her] solutions are the best course of action 

275. Is unable to pressure test his/her own ideas in a calm but assertive way

Time Management

276. Handles multiple assignments and projects well with limited supervision 

277. Is able to manage numerous assignments with great speed and accuracy 

278. Can effectively prioritize work so that the most critical assignments receive attention first 

279. Manages his/her time in a highly effective manner 

280. Is able to complete assignments even with extended deadlines 

281. Displays a strong ability to manage multiple assignments and projects simultaneously 

282. Does not meet deadlines, even when given ample time 

283. Has difficulty balancing multiple assignments and projects 

284. Does not manage his/her time effectively 

285. Fails to effectively prioritize work so that the most critical assignments receive attention first 

286. Displays a tendency to allow personal issues affect work performance 

Understanding of Job Responsibilities

287. Has a strong understanding of job responsibilities

288. Regularly alerts management of key developments in his/her job function

289. Has deep knowledge that surpasses job expectations

290. Regularly contributes and works with other departments

291. Crafts an extensive network of peers to tackle tough issues

292. Shares knowledge with peers

293. Is constantly sharing industry trends and best practices to create outsized outcomes

294. Is adept in all areas of job responsibility

295. Has little understanding of the competitive landscape

296. Has difficulty locating necessary information to complete job responsibilities

297. Produces many unnecessary errors

298. Produces substandard work

299. Fails to demonstrate a strategic mindset

300. Does not demonstrate mastery of basic concepts in the role

That’s all for now. We’ll continue to update this list of phrases in the future. Again, we strongly recommend offering continuous feedback with your team vs. waiting for an annual performance review. Also, offer an action plan to help all parties navigate difficult situations.

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Performance review phrases for employee evaluation (with examples)

The purpose of employee performance reviews is to evaluate an employee’s work performance, provide feedback on strengths and areas for improvement, set goals for future development, and foster communication and alignment between employees and management regarding expectations and objectives. The important thing is to communicate feedback in a way that is objective as possible and easy for employees and managers to understand . This list of performance review phrases will help you conduct evaluations fairly and effectively .

TABLE OF CONTENTS

Performance review comments example

Phrases for employee strengths and weaknesses, performance review career goals examples.

PHRASES FOR PERFORMANCE EVALUATION

• Collaboration performance review comments
• Teamwork performance review comments
• Professionalism and Commitment phrases
• Attendance performance review comments
• Productivity and Quality of Work phrases
• Adaptability performance review comments
• Communication Skills/Interpersonal skills phrases
• Innovation and Creativity performance review comments
• Accountability performance review comments
• Customer Focus and Customer Satisfaction phrases
• Decision making and problem solving phrases
• Dependability and Reliability performance review comments
• Integrity performance review comments
• Flexibility performance review comments
• Leadership and Management performance review comments
• Initiative performance review comments
• Job knowledge performance review comments
• Planning and Organization performance review comments
• Time Management performance review comments
• Attitude performance review comments

Performance review closing comments

• Do performance reviews with software ✅

There are many different types of employee performance reviews , using a variety of performance management tools such as a 9-box grid . Another type of review employs 360 degree feedback which is a common feature of continuous performance management .

The way the phrases listed in this article could be used are demonstrated in the performance review comment example below:

During an annual employee performance review , a manager might provide a comment such as “John consistently demonstrates exceptional problem-solving skills, effectively resolving complex challenges.” This comment serves as an example of John’s strength in problem-solving and can be used to highlight his positive contributions and areas of expertise within the team. Additionally, it can serve as a basis for discussing specific accomplishments and areas for further development during the performance review discussion.

Employee strengths and weaknesses can be gauged in a performance review through objective metrics, self-assessment, manager evaluation, 360-degree feedback, performance appraisal forms, behavioral interviews, and skill assessments. These methods provide a comprehensive understanding of an employee’s performance, helping to identify areas of excellence and areas needing improvement.

When phrasing employee strengths and weaknesses during a performance review, it’s important to be specific, objective, and constructive. Here are some tips:

• Be Specific: Use concrete examples and evidence to support your assessments rather than generalizations.
• Focus on Behaviors: Describe observable behaviors and actions rather than making assumptions about personality traits.
• Use Positive Language: Frame strengths positively to acknowledge achievements and motivate further development. For weaknesses, use constructive language that emphasizes opportunities for improvement.
• Provide Context: Consider the employee’s role, responsibilities, and the organization’s goals when evaluating strengths and weaknesses.
• Offer Support: For weaknesses, suggest strategies for improvement and offer resources or training opportunities to help the employee develop.
• Balance: Recognize that every employee has strengths and weaknesses, and aim to provide a balanced assessment that acknowledges both.
• Remove bias: Removing bias from reviews involves objectively evaluating employees’ performance based on measurable criteria and avoiding subjective judgments or preconceived notions.

Take a look at the following examples on how employee strengths and weaknesses can be phrased during a performance review cycle.

Performance review strength

Example Phrases for addressing employee strengths:

• “Sarah consistently demonstrates strong leadership skills by effectively guiding her team to achieve project milestones ahead of schedule.”
• “Tom’s exceptional communication skills foster a positive team dynamic and enhance collaboration across departments.”
• “Lisa’s attention to detail ensures accuracy and precision in all her work, contributing to the high quality of deliverables.”

Performance review weakness

Example Phrases for addressing employee weaknesses:

• “While John excels in technical skills, he could benefit from improving his time management to meet project deadlines more consistently.”
• “While Rachel demonstrates creativity in problem-solving, she occasionally struggles with accepting feedback and incorporating it into her work.”
• “David’s excellent interpersonal skills could be further enhanced by actively seeking out opportunities to mentor junior team members.”

Now that you know how to conduct performance reviews and phrase feedback in a way that is useful to employees and managers, read through the examples below to find the phrases you need for all situations.

Although performance reviews can be stressful for managers and employees alike, they provide an excellent opportunity to connect with employees and understand their career aspirations . By engaging in these discussions, managers can gain valuable insights into employees’ goals and preferences, helping to align organizational objectives with individual development paths . This proactive approach fosters a supportive and collaborative work environment, ultimately benefiting both employees and the organization as a whole.

Performance review phrases collaboration

Giving employees feedback on collaboration is crucial. It helps improve teamwork, resolves conflicts, and builds trust. Feedback also guides continuous learning and ensures everyone is working towards the same goals.

Use these phrases to give employees constructive performance review feedback on collaboration.

Meets or Exceeds Expectations

• Demonstrates assistance to coworkers with tasks, even if outside direct responsibility.
• Consistently aids coworkers facing task difficulties.
• Effectively promotes cooperation to ensure team productivity and meet deadlines.
• Displays willingness to offer assistance.
• Receives constructive criticism positively.
• Ensures assignments are followed through and followed up with.
• Volunteers to aid other teams in meeting their goals.
• Readily shares information and resources with colleagues.
• Strives to understand diverse perspectives and find common ground.
• Recognizes and credits others’ contributions.
• Facilitates constructive conflict resolution by considering all sides.
• Treats all colleagues equally regardless of role or level.
• Keeps others informed of progress for collaborative input.
• Demonstrates flexibility in reaching mutually beneficial agreements.
• Respects others’ time by communicating delays and being punctual.
• Supports team decisions even when differing from personal viewpoints.
• Assists in the integration of new coworkers and their role understanding.
• Identifies opportunities for effective coworker collaboration.
• Promotes unity around shared goals.
• Considers multiple viewpoints when evaluating alternatives.
• Facilitates cooperation across departments and organizational boundaries.
• Aids in orienting newcomers to workplace norms and policies.
• Takes initiative to maintain positive working relationships.
• Shows active interest in coworkers’ work and offers assistance.
• Expresses appreciation for contributions to team success.
• Maintains an open mind and reevaluates assumptions.
• Acknowledges personal limitations and involves others as needed.
• Prioritizes team needs over personal preferences.
• Shares credit and deflects praise onto coworkers.
• Makes an effort to connect with coworkers beyond work responsibilities.
• Advocates for the team’s interests when interacting with other groups.
• Helps foster an environment conducive to cooperation and mutual support.
• Brings out the best in coworkers through respect, support, and positivity.
• Integrates cooperation and collaboration into regular work approach.

Below Expectations

• Demonstrates unwillingness to collaborate and prefers solitary work.
• Unwilling to assist coworkers, even upon request.
• Professional in work but hesitant to offer advice to others.
• Demonstrates reluctance to work with others.
• Least likely to offer assistance when needed.
• Adapts to new tasks effectively but fails to communicate with and train others.
• Withholds information and resources rather than sharing.
• Dismisses others’ viewpoints without consideration.
• Takes credit for joint work without acknowledging contributions.
• Tends to argue rather than seek consensus.
• Fails to make an effort to understand perspectives different from own.
• Shows favoritism towards certain coworkers.
• Keeps teammates uninformed about progress and plans.
• Unwilling to compromise on issues important to others.
• Misses deadlines without communicating delays appropriately.
• Undermines group decisions that don’t align with preferences.
• Fails to help new coworkers or ensure they understand their roles.
• Fails to identify ways for coworkers to work together effectively.
• Allows disagreements to divide the team rather than unite them.
• Considers only personal perspective rather than multiple viewpoints.
• Fails to facilitate cooperation between departments.
• Fails to help orient newcomers or introduce workplace standards.
• Does little to build positive relationships with coworkers.
• Uninterested in others’ work and does not offer assistance.
• Fails to acknowledge others’ contributions to success.
• Closedminded and does not rethink assumptions.
• Takes on too much personally rather than involving others.
• Prioritizes selfinterests over team needs.
• Takes credit for self and does not recognize others.
• Detached from coworkers outside of work responsibilities.
• Does not represent team interests to other groups.
• Fosters an individualistic rather than cooperative culture.
• Fails to bring out the best in coworkers.
• Cooperation is not a regular part of work approach.

Performance review teamwork phrases

During a performance review cooperation and teamwork are among the most important qualities that need to be evaluated. Check out these performance review comments on teamwork and choose the ones to ask employees during your next evaluation period.

Performance review phrases for teamwork

Meets expectations

• Shows a high level of team spirit, readily cooperating with team members to get the job done.
• Respects every team member.
• Works well with others.
• Always helps out to achieve the goals of the group.
• Has a great willingness to help fellow teammates.
• Is a good team member, very cooperative and helpful in times of need.
• Actively participates in team discussions and shares workload.
• Respects different opinions and encourages open dialogue.
• Maintains harmonious relationships and resolves conflicts constructively.
• Acknowledges contributions of others and praises the success of teammates.
• Shares knowledge and resources willingly to help teammates succeed.
• Maintains transparency and keeps teammates informed of progress and issues.
• Respects deadlines of other departments and coordinates effectively.
• Respects commitments to teammates and delivers on assigned responsibilities.
• Maintains a collaborative approach and shares credit for team achievements.
• Seeks feedback to improve and respects feedback from other team members.
• Motivates teammates during difficult periods and boosts team morale.
• Respects team norms and establishes a cooperative working environment.
• Values different skills and backgrounds that teammates bring to projects.
• Is flexible and willing to take on additional responsibilities as required.
• Respects team boundaries and does not overstep limits of other roles.
• Is respectful towards teammates and uses polite, considerate language.
• Supports team decisions respectfully.

Below expectations

• Does not have a good relationship with team members and sometimes refuses to accept their opinion.
• Is not consistent in supporting teammates.
• Does not understand how to share tasks with others.
• Is more suitable to an individual-focused environment than a group-work environment.
• Does not know how to cooperate with colleagues in the team to achieve targets.
• Is reluctant to share work and seeks individual recognition over team achievements.
• Argues with teammates and does not respect different opinions and views.
• Fails to keep teammates informed of progress and roadblocks in a timely manner.
• Takes credit for team successes but blames others for failures or mistakes.
• Lacks flexibility and is unwilling to help teammates facing workload issues.
• Plays politics within the team and fails to establish trust and cooperation.
• Does not respect team norms and creates disruptions through unprofessional conduct.
• Fails to value different skills and backgrounds of teammates.
• Does not acknowledge efforts of others and is reluctant to praise teammates.
• Argues with feedback and disrespects suggestions from other team members.
• Discusses team matters outside inappropriately and damages confidentiality.
• Lacks commitment to team goals and allows personal needs to hamper collaboration.
• Is inflexible and unwilling to take on additional responsibilities as required.
• Fails to establish rapport with teammates and comes across as arrogant.
• Lacks initiative in resolving conflicts constructively and damages team harmony.

Performance review phrases professionalism

Professionalism isn’t just a quality; it’s also an attitude. A professional attitude can make working together much easier. Because of this, professionalism may also be evaluated during a review. In addition to phrases to evaluate professionalism in the workplace, this list also contains commitment performance review phrases.

Meets or exceeds expectations

• Demonstrates self-motivation and strives to complete all tasks on time.
• Exhibits perfectionism, persisting until achieving excellent results.
• Displays significant interest in the job, constantly generating new ideas.
• Possesses a high level of professional knowledge in the field.
• Takes initiative and continuously seeks ways to improve work.
• Maintains a positive attitude even during challenging times.
• Takes pride in work and aims for high-quality outcomes.
• Stays updated with ongoing learning in the field.
• Approaches problems with care, diligence, and a solutions-oriented mindset.
• Consistently delivers work exceeding role expectations.
• Demonstrates passion for the profession and enthusiasm for work.
• Represents the organization professionally in all interactions.
• Pays meticulous attention to detail and rectifies errors.
• Assumes responsibility for work and refrains from making excuses.
• Manages time effectively to meet all deadlines.
• Proactively seeks to improve processes and find efficiencies.
• Maintains professional composure under pressure.
• Dedicates efforts to serving organizational goals and priorities.
• Exhibits high organization, ensuring well-documented work.
• Proactively anticipates problems and develops solutions.
• Takes on additional responsibilities voluntarily.
• Willing to work extra hours when needed to complete tasks.
• Maintains a high-quality portfolio of work achievements.
• Seeks feedback to enhance skills and performance.
• Sets an example of excellence motivating high performance.
• Demonstrates leadership and mentors less experienced colleagues.
• Displays full commitment to the organization’s success.
• Pursues continuous expansion of expertise in the field.
• Fails to fulfill required duties.
• Takes excessive breaks and shows reluctance in duties.
• Often attempts to leave the workplace early.
• Shows little genuine interest in the job.
• Punctuality and appearance are lacking.
• Misses deadlines and avoids responsibility.
• Produces sloppy work not meeting quality standards.
• Makes excuses for errors or problems.
• Resists feedback and lacks initiative.
• Knowledge in the field is outdated or insufficient.
• Represents the organization unprofessionally.
• Fails to anticipate issues, leaving problems for others.
• Avoids extra responsibilities and passes work to others.
• Unwilling to work additional hours when necessary.
• Ineffective in documenting or organizing work.
• Demonstrates lack of dedication to organizational goals.
• Disorganized, losing or misfiling important documents.
• Displays a negative attitude impacting others.
• Lacks punctuality, missing meetings or appointments.
• Portfolio lacks substance and accomplishments.
• Closed to feedback and unwilling to improve.
• Shows lack of passion for the profession or field.
• Fails to set a positive example for others.

Performance review phrases attendance

Recognizing employees for their punctuality and consistent attendance is crucial. Positive phrases may include highlighting their on-time arrivals, reliability in meeting deadlines, and adherence to company policies. This acknowledgment fosters a culture of reliability and contributes to a smooth workflow.

Attendance and punctuality performance review sample

Here’s a sample performance review comment addressing attendance and punctuality:

“Jane consistently maintains excellent attendance and punctuality, setting a reliable example for the team. Her consistent presence ensures that team meetings start promptly and deadlines are met without delay. Jane’s dedication to punctuality greatly contributes to the smooth operation of our department.”

Employee performance review phrases attendance

• Performance is always reliable, following the work schedule well.
• Manages the schedule efficiently, fully completing all assigned tasks for the week.
• Sets a standard with perfect attendance.
• Exemplifies an ideal employee, arriving and leaving on time, and taking breaks as scheduled.
• Arrives fully prepared to tackle responsibilities every day.
• Demonstrates reliability with no attendance concerns.
• Punctual for work and meetings.
• Always arrives prepared for work.
• Notifies managers well in advance of planned time off.
• Makes arrangements for coverage during absences.
• Present and engaged during scheduled working hours.
• Arrives early to prepare and stays late to complete work.
• Adheres strictly to scheduled start and end times daily.
• Always ready to start work promptly.
• Schedules personal appointments outside working hours.
• Coordinates schedules with coworkers to avoid disruptions.
• Exemplifies attendance standards.
• Ensures task coverage during absences with contingency plans.
• Always on time for shifts, meetings, and deadlines.
• Impeccable attendance and punctuality year after year.
• Committed to being present and productive during work hours.
• Optimizes schedule for productivity and availability.
• Takes initiative to swap shifts as needed.
• Reliable in unpredictable or emergency situations.
• Attendance sets a motivating standard.
• Communicates availability and schedule clearly.
• Exemplary attendance record with no issues.
• Demonstrates inconsistent attitude negatively affecting the team.
• Follows appropriate schedule but often returns late from off-site activities, impacting coworkers.
• Fails to meet punctuality standards.
• Does not respond to communications promptly.
• Frequently late for work, not adhering to attendance policy.
• Takes unapproved time off or exceeds allotted leave.
• Frequent absences or lateness without advance notice.
• Leaves early or takes extended breaks without permission.
• Unpredictable schedule disrupts coworkers’ work.
• Fails to make arrangements during absences, causing workload pile-up.
• Misses deadlines and appointments due to poor time management.
• Regularly late to meetings and appointments.
• Tardiness and absenteeism set negative example.
• Frequently unavailable during scheduled hours.
• Takes unscheduled days off with short notice.
• Requires excessive supervision and follow-up due to inconsistent schedule.
• Fails to adhere to attendance and punctuality policies.
• Unpredictable whereabouts and availability.
• Inconsistent response to communications.
• Inconsistent schedule disrupts operations.
• Attendance record shows repeated issues.

Performance review comments quality of work

Providing employees with feedback about productivity and quality of work is essential for their professional growth and contribution to organizational goals. By using performance review phrases tailored to productivity and quality of work, managers can offer specific guidance and set clear expectations, fostering a culture of continuous improvement and excellence in the workplace.

Productivity and quality of work performance review examples

• Detail-oriented approach ensures consistently high-quality work.
• Maintains a high level of accuracy consistently.
• Upholds a good standard of productive work.
• Takes on new responsibilities independently.
• Demonstrates a strong grasp of job responsibilities.
• Ensures accuracy in all tasks.
• Attends to every detail in assigned tasks.
• Valued for high-quality, accurate performance.
• Developed [program/initiative] yielding [x] results.
• Improved output/production by [x]%.
• Surpassed start of year goals by [number].
• Delivers consistent, reliable results for clients/customers.
• Completes tasks efficiently well before deadlines.
• Initiates process improvements for increased efficiency.
• Minimizes rework or corrections in work.
• Sets a high standard with work performance.
• Maintains meticulous records and documentation.
• Finds innovative solutions to complex problems.
• Work product exceeds role requirements.
• Completes extra tasks beyond normal duties.
• Receives consistent praise from customers/clients.
• Achieves results exceeding performance targets.
• Delivers work on time and within budget.
• Solutions are well-conceived and enduring.
• Rarely achieves monthly performance targets.
• Produces a higher defect rate compared to peers.
• Work does not meet required output standards.
• Demonstrates low knowledge of required work procedures.
• Reluctant to take on new responsibilities.
• Struggles to concentrate on work.
• Unaware of job requirements.
• Unreliable quality of work.
• Fails to check work thoroughly before submission.
• Unable to perform job without assistance.
• Lack of concentration leads to high error rate.
• Work doesn’t pass inspection by team members.
• Overlooks task details.
• Misses key task requirements.
• Fails to meet basic quality standards.
• Work requires excessive corrections.

Performance review phrases adaptability

Providing employees with feedback about adaptability is crucial because it helps them understand their strengths and areas for improvement in navigating changes and uncertainties within the workplace. By acknowledging adaptability through feedback, employees are encouraged to embrace new challenges, learn from experiences, and develop resilience, ultimately contributing to their professional growth and the overall success of the organization.

• Maintains a calm and composed demeanor under stressful situations.
• Acknowledges and recognizes proposals for change.
• Promptly tackles changes while completing assignments.
• Welcomes criticism to improve the business.
• Willing to explore more effective business methods.
• Adjusts approach when facing obstacles.
• Considers different perspectives before deciding on action.
• Incorporates feedback to improve work methods.
• Remains open-minded towards new ideas and suggestions.
• Readily accepts additional responsibilities when needed.
• Flexible enough to take on varied tasks.
• Adapts communication style to different personalities.
• Makes necessary adjustments to changing priorities.
• Alters approach based on unique situation demands.
• Tailors solutions according to target audience.
• Reworks procedures in response to shifting business needs.
• Modifies plans readily with new information.
• Fine-tunes methods to optimize performance.
• Varies problem-solving techniques for differing issues.
• Adjusts easily to new teams and working environments.
• Alters traditional methods for more effective options.
• Diversifies skill set through ongoing training.
• Reconsiders solutions in response to changing needs.
• Tweaks established processes with new developments.
• Modifies deadlines and timelines to accommodate changes.
• Reworks content for various presentation formats.
• Streamlines operations by refining ineffective practices.
• Upgrades skills continuously to stay ahead of changes.
• Slow to confront changes.
• Unwilling to accept even minor changes.
• Easily confused about “out of plan” changes.
• Unwilling to accept last-minute changes.
• Struggles adjusting to unexpected obstacles.
• Resists considering different viewpoints.
• Fails to incorporate constructive criticism.
• Dismisses new ideas without proper evaluation.
• Declines additional responsibilities outside scope.
• Struggles shifting between diverse tasks.
• Uses a rigid communication approach.
• Difficulty adjusting to shifting priorities.
• Applies a one-size-fits-all solution method.
• Struggles tailoring solutions for different audiences.
• Slow to modify procedures in response to changes.
• Fails to update plans with new information.
• Does not fine-tune methods for better performance.
• Uses a standardized problem-solving approach.
• Difficulties adjusting to new teams and environments.
• Clings to outdated methods despite better options.
• Fails to expand skillset through ongoing learning.
• Slow to reconsider solutions that no longer fit.
• Uses a one-size-fits-all communication style.
• Resists tweaking processes for new developments.
• Does not refine strategies in line with market changes.
• Teaches all learners uniformly regardless of needs.
• Inflexible about deadlines and timelines.
• Presents content in a rigid format.
• Clings to ineffective practices rather than streamline.
• Fails to upgrade skills to adapt to changes.

Performance review communication skills comments

Providing employees with feedback about communication is essential as it enhances teamwork, collaboration, and organizational effectiveness. Through performance review comments on communication and interpersonal skills, managers guide employees to understand how their communication impacts work relationships . By using performance appraisal communication skills examples and evaluation phrases, managers help employees improve their ability to convey ideas, resolve conflicts , and foster positive relationships.

Performance review phrases communication skills

• Communication skills, both verbal and written, are highly effective.
• Friendly communicator, building rapport with every division in the company.
• Positive attitude and willingness to listen are highly appreciated.
• Regularly gives constructive feedback.
• Makes new employees feel welcome.
• Provides accurate and timely information, both written and orally.
• Actively listens to others.
• Involves others in problem-solving.
• Provides clear instructions and expectations.
• Accepts criticism, is open to new ideas, and handles conflict constructively and diplomatically.
• Articulates ideas in a clear and organized manner.
• Communicates effectively with all levels of staff.
• Establishes rapport easily with both internal and external contacts.
• Shares credit and recognizes others’ contributions.
• Gives and receives feedback professionally and productively.
• Builds strong working relationships across departments.
• Expresses empathy when listening to others.
• Facilitates discussions to reach agreement.
• Communicates appropriately for each audience and situation.
• Addresses concerns respectfully and seeks mutually agreeable solutions.
• Presents information compellingly to different groups.
• Encourages open dialogue and the sharing of perspectives.
• Mediates disagreements constructively to find common ground.
• Maintains an approachable demeanor to foster collaboration.
• Keeps others informed proactively through regular updates.
• Clarifies expectations to ensure shared understanding.
• Negotiates diplomatically to reach mutually agreeable solutions.
• Fosters an environment of trust and respect among colleagues.
• Expresses disagreement respectfully and proposes alternative options.
• Welcomes diverse viewpoints and new ideas from all levels.
• Facilitates cooperation across teams to accomplish goals.
• Connects people to build new relationships and opportunities.
• Keeps an open door to address any staff concerns constructively.
• Makes others feel heard by paraphrasing their perspectives.
• Brings people together, finds common ground, and moves discussion forward productively.
• Acknowledges others effectively to build morale and engagement.
• Resolves interpersonal issues diplomatically to maintain cohesion.
• Keeps an even temper when under pressure or during disagreement.
• Fails to communicate with team members effectively.
• Must improve foreign language skills.
• Not adept at documenting verbal communication.
• Should work on this skill over the next 90 days.
• Should communicate project status updates more frequently.
• Seen as unapproachable by many coworkers.
• Needs to work on listening to others.
• Works well with own team but has an “us” against “them” mentality towards others within the company.
• Struggles articulating ideas clearly.
• Fails to communicate effectively across levels.
• Difficulty establishing rapport externally.
• Takes credit individually rather than recognizing others.
• Gives feedback in an unproductive manner.
• Lacks strong working relationships across departments.
• Does not show empathy when others speak.
• Does not facilitate discussions to reach agreement.
• Uses inappropriate communication style.
• Fails to address concerns respectfully to find solutions.
• Presents information poorly to different groups.
• Discourages open dialogue and sharing of perspectives.
• Handles disagreements in an unconstructive manner.
• Maintains an unapproachable demeanor.
• Fails to provide regular updates proactively.
• Lacks clarity on expectations.
• Negotiates in an adversarial rather than cooperative spirit.
• Fosters an environment lacking trust and respect.
• Expresses disagreement disrespectfully.
• Discourages diverse viewpoints and new ideas.
• Fails to facilitate cooperation across teams.
• Does not connect people to build opportunities.
• Inaccessible to address staff concerns.
• Does not acknowledge others’ perspectives.
• Moves discussions in an unproductive direction.
• Fails to acknowledge others effectively.
• Loses temper during disagreement or pressure.

Performance review phrases for innovation and creativity

Providing employees with feedback about innovation and creativity is crucial for fostering a culture of innovation within the organization. By acknowledging and encouraging innovative thinking through feedback, employees are motivated to generate new ideas, solve problems creatively, and drive positive change. This feedback helps employees understand the value of their innovative contributions and reinforces a culture that values creativity, ultimately leading to improved organizational performance.

Creativity performance review phrases

• Demonstrates the ability to develop creative solutions to solve problems.
• Thinks outside the box to find the best solutions to particular problems.
• Regularly contributes suggestions on how to improve company processes.
• Constantly searches for new ideas and ways to improve efficiency.
• Has launched creative initiatives such as [specific example].
• Creates breakthrough and helpful ideas in meetings.
• Trusted for a helpful and creative solution when facing difficulty.
• A creative individual who often finds effective solutions to problems.
• Develops innovative concepts for new products and services.
• Approaches challenges with an imaginative mindset.
• Generates fresh perspectives on existing problems.
• Encourages the team to think creatively and come up with innovative solutions.
• Fosters a culture of creativity and innovation within the team.
• Recognizes and rewards creative thinking and innovation within the team.
• Provides opportunities for the team to develop creativity and innovation skills.
• Collaborates with the team to generate new and innovative ideas.
• Willing to experiment with new approaches or ideas, enabling the team to innovate.
• Seeks out new and innovative solutions to problems.
• Receptive to feedback or suggestions from the team regarding creative solutions.
• Prioritizes creativity and innovation in the team’s goals and objectives.
• Invests in training or development programs to enhance the team’s creativity and innovation skills.
• Provides a safe and supportive environment for the team to take creative risks.
• Encourages the team to challenge the status quo and think outside the box.
• Recognizes and appreciates the value of creative thinking and innovation in achieving business goals.
• Proactive in seeking out new and innovative opportunities for the team.
• Provides the necessary autonomy and freedom for the team to explore creative solutions.
• Empowers the team to take ownership of their creativity and innovation efforts.
• Recognizes and addresses barriers that may hinder the team’s ability to be creative and innovative.
• Provides the necessary support and resources for the team to implement creative solutions.
• Fosters a culture of experimentation and learning from failure.
• Adapts to changing circumstances and finds creative solutions to new challenges.
• Consistently comes up with fresh and innovative ideas to improve business operations.
• Inspires the team to think creatively and embrace new ideas.
• Balances creativity with practicality to find effective solutions.
• Skilled at identifying opportunities for innovation and implementing them successfully.
• Encourages a collaborative approach to problem-solving, leading to creative solutions.
• Communicates complex ideas in a clear and creative manner.
• Passionate about exploring new ideas and finding innovative solutions to problems.
• Does not encourage the team to find creative solutions.
• Demonstrates a lack of interest in contributing creative or innovative ideas.
• Has a difficult time thinking “outside of the box” and creating new solutions.
• Tends to act before thinking, causing problems when pushing untested or unexamined ideas forward too quickly.
• Discourages creative solutions from the team.
• Rarely considers new and innovative ideas from the team.
• Shows little interest in exploring creative solutions to problems.
• Tends to stick to traditional methods instead of exploring new and innovative approaches.
• Not open to new ideas and tends to shut down creative suggestions from the team.
• Lacks the ability to think creatively and come up with innovative solutions.
• Does not value creativity and innovation in the team.
• Resistant to change and new ideas, limiting the team’s ability to innovate.
• Does not provide the necessary resources or support for the team to be creative and innovative.
• Does not foster a culture of creativity and innovation within the team.
• Not willing to take risks or try new things, hindering the team’s ability to innovate.
• Does not encourage the team to think creatively and come up with innovative solutions.
• Does not recognize or reward creative thinking and innovation within the team.
• Does not provide opportunities for the team to develop creativity and innovation skills.
• Does not collaborate with the team to generate new and innovative ideas.
• Not willing to experiment with new approaches or ideas, limiting the team’s ability to innovate.
• Does not seek out new and innovative solutions to problems.
• Not receptive to feedback or suggestions from the team regarding creative solutions.
• Does not prioritize creativity and innovation in the team’s goals and objectives.
• Does not invest in training or development programs to enhance the team’s creativity and innovation skills.
• Does not provide a safe and supportive environment for the team to take creative risks.
• Does not encourage the team to challenge the status quo and think outside the box.
• Does not recognize or appreciate the value of creative thinking and innovation in achieving business goals.
• Not proactive in seeking out new and innovative opportunities for the team.
• Does not provide the necessary autonomy and freedom for the team to explore creative solutions.
• Does not empower the team to take ownership of their creativity and innovation efforts.
• Does not recognize or address barriers that may hinder the team’s ability to be creative and innovative.
• Does not provide the necessary support and resources for the team to implement creative solutions.

Accountability performance review phrases

Providing employees with feedback on accountability encourages responsibility, trust, and high performance, contributing to your company’s success.

Performance review accountability

In performance reviews, accountability is crucial for assessing employees’ reliability and commitment to their roles . Feedback on accountability evaluates their ability to take ownership of their work, meet deadlines, and fulfill commitments. It reinforces the importance of responsibility and reliability while setting clear expectations for future performance. By recognizing instances of accountability and addressing areas for improvement, managers cultivate a culture of trust and integrity within the organization, ultimately leading to improved employee engagement and productivity.

• Demonstrates responsibility by assisting team mates with their tasks willingly.
• Takes full accountability for actions and never avoids responsibility.
• Assists coworkers promptly in response to workload changes.
• Offers assistance to others proactively.
• Volunteers assistance even when not expected.
• Displays empathy towards others’ needs.
• Strives to foster a positive work atmosphere.
• Shows awareness of external environmental needs.
• Efficiently utilizes time consistently.
• Welcomes feedback on work openly.
• Takes ownership of tasks from start to finish autonomously.
• Identifies when additional help is needed and finds solutions without compromising quality or deadlines.
• Acknowledges mistakes as opportunities for growth.
• Considers impacts of actions and decisions on others.
• Leads by example with a strong work ethic.
• Maintains integrity and earns trust through consistent demonstration of competence.
• Respects organizational hierarchy while contributing innovative ideas.
• Finds purpose in work beyond self-interest.
• Considers multiple perspectives and builds consensus before deciding on solutions.
• Gives credit to others and shares team accomplishments.
• Meets commitments reliably while adapting plans to new information.
• Maintains a positive, solution-oriented mindset under stress.
• Advocates for process improvements based on objective data.
• Builds cooperative relationships across departments to enhance coordination.
• Leads with compassion and mentorship.
• Remains solutions-focused under pressure.
• Admits gaps in knowledge and seeks guidance.
• Approaches conflicts with empathy, fairness, and good faith.
• Holds self to high standards with diligence.
• Focuses on completing tasks before moving to new priorities.
• Proactively leads and anticipates challenges.
• Sets vision and strategy while empowering others.
• Fosters a growth culture where all contribute.
• Maintains a learning mindset to optimize outcomes.
• Fosters collaboration for maximum impact.
• Frequently shifts responsibility onto others.
• Reluctant to acknowledge failures.
• Struggles with accepting responsibility.
• Often makes excuses for failure.
• Blames processes and policies for shortcomings.
• Resists feedback that challenges assumptions.
• Takes credit for team accomplishments while avoiding blame.
• Focuses on others’ mistakes rather than supporting improvement.
• Fails to follow through on commitments.
• Makes excuses for missed deadlines.
• Acts entitled and resistant to additional responsibilities.
• Avoids owning up to subpar work.
• Plays the blame game instead of resolving issues constructively.
• Lacks self-awareness and initiative.
• Needs constant supervision and prompting.
• Becomes defensive when standards are enforced.
• Acts entitled when asked to improve.
• Lacks ownership over projects.
• Misses obvious problems.
• Avoids difficult conversations and decisions.
• Fails to acknowledge missteps.
• Lacks attention to detail and quality.
• Acts entitled when given feedback.
• Lacks initiative and ownership.
• Plays the victim rather than taking responsibility.

Performance review customer focus

Providing employees with feedback about customer focus is crucial as it reinforces the importance of prioritizing customer needs and customer satisfaction . This feedback aligns employee behavior with organizational goals, empowers employees to understand the impact of their interactions on customer experiences, and improves customer retention and business outcomes.

Performance review phrases for customer focus

• Demonstrates skill in finding the right approach with any client, even the most critical.
• Maintains politeness and friendliness with customers, avoiding interruptions during conversations.
• Commits to fulfilling promises made to clients without fail.
• Prioritizes the comfort and convenience of clients.
• Goes above and beyond job requirements consistently to satisfy customers.
• Exhibits proficiency in working with clients, receiving no complaints from them.
• Handles difficult customers gracefully.
• Achieves consistently high marks on customer satisfaction surveys.
• Provides consistent, quality service to all customers.
• Follows up with customers promptly.
• Ensures customers are accurately informed, making an extra effort to do so.
• Actively listens to customers, seeking to understand their needs and preferences.
• Responds to customer inquiries promptly and professionally.
• Takes ownership of customer issues and diligently works to resolve them.
• Anticipates customer needs and offers proactive solutions.
• Demonstrates empathy and understanding when customers express frustration.
• Maintains a positive attitude even when dealing with challenging customers.
• Takes responsibility for customer outcomes and aims to exceed expectations.
• Builds rapport and trust with customers through consistent high-quality service.
• Demonstrates flexibility and adaptability to changing customer needs.
• Possesses a deep understanding of the products or services provided to customers.
• Seeks feedback from customers to improve service and product offerings.
• Maintains accurate and up-to-date records of customer interactions and needs.
• Responds to customer complaints urgently and resolves them quickly.
• Proactively identifies and addresses potential customer issues.
• Exhibits patience and persistence in resolving complex customer issues.
• Stays informed about competitors and industry trends to better serve customers.
• Can handle everyday customer service situations but lacks flexibility and knowledge in complex issues.
• Needs to reduce average time per call, especially when it is high.
• Handles phone customer service well but struggles with face-to-face interactions.
• Receives consistently low marks in customer satisfaction surveys.
• Needs improvement in active listening skills.
• Attendance and participation in customer service training sessions are lacking.
• Frequently passes challenging issues to others instead of addressing them personally.
• Demonstrates frustration with clients who ask questions.
• Struggles with difficult customers, often deferring to a supervisor.
• Lacks initiative in finding solutions to challenging customer issues.
• Displays impatience or irritation with customers who have complex needs.
• Fails to take ownership of customer issues and often passes them to others.
• Lacks timely and effective follow-up with customers.
• Shows a lack of empathy and understanding with dissatisfied customers.
• Communicates poorly with customers, leading to misunderstandings.
• Does not take responsibility for customer outcomes and tends to blame external factors.
• Provides inconsistent service quality to customers.
• Fails to anticipate customer needs or proactively offer solutions.
• Does not seek or utilize customer feedback for improvement.
• Neglects to maintain accurate records of customer interactions.
• Responds slowly to customer complaints and does not resolve them promptly.
• Lacks patience and persistence in resolving complex customer issues.
• Lacks understanding of products or services offered to customers.
• Fails to adapt to changing customer needs.
• Does not maintain professionalism in high-pressure situations.
• Lacks understanding of the importance of customer service.
• Fails to proactively address potential customer issues.
• Does not take customer feedback seriously or use it for improvement.
• Fails to fulfill commitments made to customers, leading to dissatisfaction.
• Shows reluctance to learn and improve in customer service skills.

Performance review phrases decision making

Providing employees with feedback about problem-solving and decision-making skills is essential for fostering innovation and efficiency. By acknowledging strengths and addressing areas for improvement, feedback empowers employees to develop critical thinking and sound judgment, leading to better problem resolution and increased productivity. Use these performance review phrases tailored to decision-making and problem-solving to provide employees with specific and actionable feedback .

Performance review phrases problem solving

• Skillful at analyzing situations and working out solutions.
• Clearly defines problems and seeks alternative solutions.
• Demonstrates decisiveness in difficult situations.
• Makes sound, fact-based judgments.
• Carefully analyzes issues and explores different resolutions.
• Demonstrates creativity and innovation in problem-solving.
• Prioritizes competing demands and makes tough decisions.
• Displays good judgment and critical thinking skills.
• Identifies root causes of problems and addresses them effectively.
• Considers all factors before determining the best course of action.
• Thinks through potential consequences before finalizing plans.
• Objectively weighs pros and cons to arrive at well-reasoned conclusions.
• Solicits input from others to gain diverse perspectives.
• Maintains composure under pressure and makes level-headed choices.
• Approaches issues with an open mind to find optimal solutions.
• Thinks creatively to tackle challenging problems.
• Learns from past experiences to improve decision making.
• Breaks large problems down into manageable pieces.
• Balances the bigger picture with important details.
• Gathers relevant facts from reliable sources.
• Adapts decisions based on new information.
• Finds practical solutions within constraints.
• Evaluates outcomes and adjusts as needed.
• Foresees potential obstacles or consequences.
• Balances risks and potential benefits in decision making.
• Draws logical conclusions based on evidence.
• Considers diverse viewpoints to develop plans.
• Prioritizes and tackles important issues first.
• Remains open to new information and perspectives.
• Re-evaluates solutions against goals and refines as needed.
• Anticipates second and third order effects of choices.
• Applies overly complex approaches to problem-solving.
• Struggles with difficult problems.
• Avoids awkward situations.
• Loses focus when faced with complexity.
• Makes hasty decisions without considering factors.
• Fails to acknowledge flaws in reasoning.
• Makes inconsistent decisions without rationale.
• Does not re-evaluate choices when needed.
• Fails to consider implications of decisions.
• Does not gather sufficient information.
• Allows emotions to cloud judgment.
• Rejects contradictory input.
• Becomes flustered under pressure.
• Approaches issues with closed mind.
• Focuses on single solutions.
• Fails to see broader implications.
• Does not learn from past errors.
• Makes excuses for unsuccessful solutions.
• Avoids responsibility for consequences.
• Jumps to conclusions without facts.
• Struggles to break problems down.
• Loses sight of overarching goals.
• Relies on anecdotes over data.
• Fails to re-examine assumptions.
• Does not establish evaluation criteria.
• Ignores potential challenges.
• Struggles to prioritize effectively.
• Fails to adapt to changing circumstances.
• Proposes unrealistic solutions.
• Rushes through decisions without analysis.

Performance review phrases for dependability

Providing employees with feedback about dependability is crucial for maintaining trust and efficiency within the organization. It reinforces the importance of reliability and meeting deadlines , helping employees understand how their performance impacts team dynamics and productivity. By addressing areas needing improvement, feedback empowers employees to enhance their dependability and contribute more effectively to organizational success, fostering a culture of accountability and reliability.

Performance review phrases reliability

• Willing to work overtime until the project is finished.
• The go-to person if the task absolutely must be completed by a given time.
• Dependable and turns in good performance each day. Never fails to impress.
• Shows faithful commitment to getting the job done, consistently performing at or above expectations.
• Known for dependability and willingness to do what it takes.
• Can be counted upon for steady performance.
• Consistently demonstrates solid performance in all aspects of work.
• Handles projects conscientiously from start to finish.
• Meets deadlines reliably and completes work within expected timeframes.
• Follows through consistently and honors commitments.
• Accepts responsibility for tasks and sees them through to completion.
• Maintains a consistent level of quality and effort in all duties.
• Work is thoroughly done right the first time with few errors.
• Can be counted on to handle important tasks independently.
• Punctual and dependable in attendance and timekeeping.
• Keeps others informed of progress and potential delays.
• Maintains focus and follows through to the end of projects.
• Colleagues trust that work assigned will be done reliably.
• Accountable and takes ownership of responsibilities.
• Performance level remains consistent even under pressure.
• Maintains composure and continues working steadily.
• Proactive in preventing delays or issues with deadlines.
• Work habits demonstrate discipline and dependability.
• A rock others can lean on in times of heavy workload.
• Performance level is unwavering despite distractions.
• Delivers on commitments with consistent effort and quality.
• Cannot depend on him. Better to assign tasks to someone else.
• Productivity is not as good as coworkers’.
• Very loyal but cannot be depended on. An irresponsible person.
• Demands reliability from others, but not from himself.
• Energy, drive, and performance levels are inconsistent and unpredictable.
• Makes promises that aren’t kept.
• Guarantees deadlines will be met, but consistently misses them.
• Reliable when it suits him, constantly needs reminders for disliked tasks.
• Work quality and effort levels vary unpredictably.
• Does not demonstrate consistent ownership of responsibilities.
• Makes excuses when failing to follow through on commitments.
• Others cannot rely on him to manage important duties independently.
• Work is error-prone, quality is not maintained.
• Easily distracted or sidetracked from tasks.
• Productivity decreases significantly under normal pressure.
• Unreliable and inconsistent in following instructions.
• Does not take initiative or demonstrate accountability.
• Struggles to multi-task or manage deadlines effectively.
• Colleagues cannot depend on tasks being done right the first time.
• Becomes overwhelmed and makes poor choices when busy.
• Struggles to maintain focus and follow projects through.
• Misses important details and fails to deliver quality work.
• Does not keep others informed of progress or delays.
• Work cannot be depended on to meet professional standards.
• Easily distracted by unrelated tasks or personal matters.

Performance review phrases integrity

Providing employees with feedback about integrity is crucial for upholding trust and ethical standards within the organization. It reinforces the importance of honesty, transparency, and adherence to organizational values, helping employees understand the impact of their actions on the workplace culture and reputation. Addressing any integrity concerns empowers employees to uphold ethical standards and contribute to a positive work environment, fostering honesty and trustworthiness throughout the organization.

Performance appraisal phrases for integrity

• Very honest, never abusing company benefits for personal purposes.
• Highly principled, treating all coworkers equally, regardless of gender, age, or any other factor.
• Has the ability to resolve disputes with clients and partners peacefully.
• Discourages gossip or other negative discourse at the workplace, forming a good working climate.
• Understands legal responsibility to the company very well.
• Strong sense of integrity underlies all dealings with vendors.
• Makes decisions that consistently reflect a strong commitment to acting reputably.
• Never shares confidential company information with outsiders without proper authorization.
• Reports any violations of company policies or code of conduct witnessed.
• Handles all customer complaints with empathy, respect, and care.
• Takes responsibility for own mistakes and learns from them.
• Gives credit to colleagues for their contributions and does not take sole credit for teamwork.
• Leads by example with high ethical standards in all dealings.
• Honest and transparent in all communication with management and peers.
• Handles conflicts of interest appropriately and does not let personal interests influence professional decisions.
• Respects privacy and protects sensitive information of customers, partners, and the company.
• Makes well-considered decisions keeping long-term interests of stakeholders in mind.
• Takes a principled stand against unfair treatment or discrimination.
• Acts with utmost integrity in all internal and external interactions.
• Takes responsibility for ensuring team follows the company code of conduct.
• Leads by setting an example of high ethical values in day-to-day work.
• Honest and transparent in documenting work progress and results.
• Takes initiative to clarify and understand expectations to avoid misunderstandings.
• Respects and complies with all applicable laws and regulations.
• Handles sensitive information with discretion and does not misuse authority or access.
• Truthful and factual in preparing any documents and records.
• Leads by personal example of ethical and lawful conduct.
• Occasionally made misleading statements that needed correction.
• Accusations from customers of being untruthful.
• Integrity does not seem to rank particularly highly on priorities.
• Expects integrity from others, but doesn’t always display it himself.
• Demonstrates acceptable levels of integrity only intermittently.
• Showed several recent lapses in integrity.
• Violates company standards and expectations regarding employee integrity.
• Cost the company customers and money because of disingenuous behavior.
• Integrity seems flexible when it suits purposes.
• Lack of integrity undermines effectiveness and damages credibility.

Performance review phrases flexibility

Feedback on flexibility in performance reviews is important as it encourages employees to adapt to change and new ideas. It helps create a culture of innovation and agility in the organization. Ultimately, addressing flexibility promotes individual growth and organizational success.

• Ready to make new and carefully considered decisions if the situation has changed and the previous actions have become inappropriate.
• Ready to work extra hours if urgent and essential issues must be solved by the end of the day.
• Strong and confident but at the same time open-minded. Always ready to consider proposals from colleagues.
• Always stays aware of market changes to be able to react immediately. This awareness helps the company develop and flourish.
• Shows initiative and is flexible when approaching new tasks.
• Ready to consider new perspectives and adjust views if compelling counterarguments are presented.
• Willing to take on additional responsibilities outside normal role when the team needs support.
• Adapts smoothly to changing priorities and demands without becoming frustrated or overwhelmed.
• Remains open to alternative solutions even after committing to a particular course of action.
• Embraces diverse viewpoints and values the unique perspectives of all team members.
• Receptive to feedback and uses it constructively to strengthen performance.
• Transitions between tasks seamlessly thanks to ability to stay focused yet flexible.
• Brings a versatile skill set to each new challenge and finds innovative ways to add value.
• Tailors approach based on the unique needs of diverse clients and stakeholders.
• Readily takes on different roles to ensure all work gets done to a high standard.
• Handles unforeseen complications calmly and creatively without compromising quality or deadlines.
• Maintains a high level of performance despite unpredictable demands and shifting company priorities.
• Embraces change proactively and sees it as an opportunity rather than a disruption.
• Finds the upside in difficulties and uses challenges to strengthen adaptability.
• Approaches each new task with an open and inquisitive mindset rather than rigid preconceptions.
• Does not excel at activities which require a high degree of flexibility.
• Can change point of view without analyzing or defending it. Should be more certain about proposals.
• Tends to resist activities where the path is unknown.
• Becomes uptight when the plan changes.
• Not comfortable when the agenda changes unexpectedly.
• Prefers sticking to a set routine and gets uneasy with unexpected deviations.
• Adapting to new situations does not come naturally and would benefit from being more open to change.
• Gets stuck in rigid thinking and has difficulty considering alternative perspectives.
• Shows reluctance to adjust approach even when presented with a better option.
• New information that contradicts preconceptions can make defensive rather than open-minded.
• Last-minute changes can frustrate as likes advance preparation and scheduling.
• Tendency to get stuck in rigid ways of thinking instead of considering different perspectives.
• Adjusting to alternative solutions requires more effort than sticking to original idea.
• Shows reluctance to modify strategies even when circumstances change.
• Openness to alternate viewpoints is an area that can further develop for improved flexibility.
• Demonstrates rigidity in thinking patterns and could benefit from strengthening adaptability skills.
• Going outside prescribed processes to get work done can be challenging.

Performance review for leadership

Providing employees with feedback about leadership skills during performance reviews is essential for their career growth and the organization’s success. This feedback helps employees understand their strengths and areas for improvement in leading teams and projects, aligning their behavior with organizational goals and values. By addressing any gaps in leadership capabilities, feedback empowers employees to enhance their skills and positively impact team performance, fostering a culture of effective leadership within the organization .

• Distributes resources in an appropriate manner depending on the priority of assignments.
• Establishes a corporate culture of reliability and caring.
• Is ready to share information and knowledge for the common development of all staff.
• Is very helpful when mentoring entry-level staff getting used to their jobs.
• Creates a culture of dialogue.
• Recognizes staff for a job well done.
• Allocates tasks appropriately based on the prior assignments.
• Understands people and the different ways to motivate them to get the job done.
• Provides constant coaching and guidance to employees.
• Cultivates an atmosphere of teamwork and cooperation.
• Leads by example with integrity and strong work ethic.
• Empowers staff to take initiative within clear guidelines.
• Encourages open communication up and down the chain.
• Provides regular constructive feedback and coaching.
• Celebrates both individual and team achievements.
• Makes oneself available as needed for guidance.
• Helps staff set and pursue career development goals.
• Delegates appropriately based on competencies.
• Gives credit to staff for accomplishments.
• Removes obstacles to allow staff to excel.
• Provides stretch assignments for growth opportunities.
• Leads with a vision that inspires commitment.
• Empowers staff to find innovative solutions.
• Cultivates an inclusive environment of respect.
• Confuses the employees through different directions and guidance.
• Rarely shows appreciation for good performance.
• Fails to explain procedures to subordinates clearly. Lacks the qualifications to be an effective mentor.
• Gets frustrated easily with new team members and fails to offer any support.
• Often impatient and unhelpful.
• Sends mixed signals to the team regarding goals and day-to-day activities.
• Rarely shows any recognition to the team.
• Sets unreasonably high expectations for the team.
• Provides inconsistent direction without clarity.
• Does not recognize contributions publicly.
• Lacks patience when explaining procedures.
• Appears unsupportive of new staff questions.
• Shows irritation easily instead of calm guidance.
• Sends conflicting cues about priorities.
• Sets unrealistic targets without resources.
• Does not cultivate an atmosphere of trust.
• Delegates poorly without clarity on expectations.
• Does not connect staff to learning opportunities.
• Lacks vision and fails to inspire commitment.
• Plays favorites within the team.
• Shows lack of interest in staff development.
• Fails to build an inclusive work culture.
• Lacks integrity and consistency in leadership.
• Is unavailable and unapproachable as needed.

Performance review comments initiative

Providing feedback on initiative during performance reviews is important because it encourages employees to take action and contribute ideas. It helps create a culture where employees feel empowered to drive progress and innovation . Ultimately, addressing initiative promotes success for both individuals and the organization.

• Doesn’t wait for instructions, shows initiative to find new tasks.
• Requires minimal supervision, shows initiative independently.
• Goal-oriented, sets own priorities to accomplish job.
• Takes initiative in overcoming obstacles and finding resolutions.
• Considered best person in group for innovative ideas and effective working methods.
• Never minds taking on new tasks, even the most difficult ones.
• Consistently looks for ways to add more value through continuous improvement.
• Willingly takes on additional responsibilities outside core job scope.
• Proactively seeks out new challenges and stretches continuously.
• Takes ownership and drives tasks from start to finish without needing oversight.
• Solves problems independently before escalating issues.
• Identifies needs and opportunities others may miss and acts quickly.
• Leads by example, inspires others through high levels of self-motivation.
• Identifies and implements efficiencies to optimize performance.
• Initiates collaborative relationships for mutual benefit.
• Takes on additional work during peak periods without needing to be asked.
• Approaches challenges with a can-do attitude, finds solutions independently.
• Identifies and acts on opportunities for organizational improvement.
• Proactively manages workload and workstreams with little supervision.
• Implements best practices to continuously raise performance.
• Takes ownership of projects, driving them proactively.
• Applies skills to new areas for organization’s benefit.
• Builds strong internal and external working relationships proactively.
• Contributes innovative ideas at team meetings and discussions.
• Takes on stretch assignments eagerly to accelerate learning and growth.
• Drives continuous improvement initiatives independently.
• Implements new processes or systems for enhanced effectiveness.
• Pitches in to help others complete their work as needed.
• Takes actions independently to advance organizational priorities and strategy.
• Seems too difficult for him to do job on his own.
• Poor abilities to establish priorities and courses of action for self, lacks planning and follow-up skills to achieve results.
• Needs close supervision when performing assignments.
• Doesn’t seek out opportunities to learn and grow within role.
• Passively waits to be told what to do rather than driving tasks proactively.
• Lacks motivation, relies heavily on external direction.
• Fails to identify needs and opportunities for improvement.
• Does not look for ways to add more value or take on additional responsibilities.
• Avoids or is slow to take on new challenges and stretch assignments.
• Escalates issues prematurely rather than solving problems independently.
• Struggles to work independently, not self-starting.
• Lacks proactive, solution-oriented approach to tasks and challenges.
• Fails to identify opportunities for process improvements.
• Relies on others to identify additional work needed during peaks.
• Lacks can-do attitude, depends on others to solve problems.
• Ineffective at independent time management and workload prioritization.
• Does not initiate implementation of industry best practices.
• Lacks ownership over projects, depends on significant oversight.
• Rarely contributes innovative ideas or suggestions proactively.

Employee performance review comments job knowledge

Giving employees feedback about job knowledge during performance reviews is essential to ensure they have the skills needed for their roles . It reinforces the importance of continuous learning and staying updated on industry trends. Addressing job knowledge promotes competence, growth, and excellence within the organization.

Performance review job knowledge phrases

• Possesses perfect knowledge and skills useful for the job.
• Has deep knowledge of products and particular characteristics of company’s products.
• Takes available opportunities to increase knowledge of relevant job skills.
• Completes assignments accurately and efficiently.
• Maintains up-to-date level of professional and technical knowledge.
• Demonstrates knowledge of job on a daily basis.
• Always applies new knowledge to work and keeps up with changes in field.
• Has excellent grasp of technical aspects of role.
• Seeks out opportunities for continuous learning and skills development.
• Demonstrates expertise when answering questions from others.
• Applies specialized skills and knowledge effectively to all tasks.
• Troubleshoots issues efficiently using in-depth product understanding.
• Keeps well-informed of best practices and emerging standards.
• Delivers work to expert level through extensive learning.
• Takes advantage of all training opportunities provided.
• Shares knowledge and expertise willingly with others.
• Learns quickly and applies new skills independently.
• Stays well-informed on industry news and competitor offerings.
• Contributes insights based on in-depth knowledge and research.
• Provides expert guidance to others regularly.
• Enhances knowledge continuously through self-study.
• Makes complex topics easily understood for others.
• Recommends process improvements based on leading practices.
• Mentors less experienced team members effectively.
• Incorporates feedback to enhance skills and performance.
• Cannot fulfill duties due to lack of necessary knowledge of job.
• Not as knowledgeable about job and its requirements as expected.
• Doesn’t know key fundamentals of job, always asks for other people’s instruction.
• Repeatedly asks same questions about job duties, does not retain important information.
• Skill set does not meet requirements for job.
• Not taking advantage of available learning resources to expand job knowledge.
• Relies too heavily on others rather than developing greater self-sufficiency.
• Learning plan needed to strengthen job knowledge and skills.
• Consistently demonstrates lack of understanding of job requirements and expectations.
• Job knowledge falls short of what is necessary to perform duties effectively.
• Frequently makes mistakes due to inadequate knowledge of job.
• Struggles to keep up with demands of job due to limited understanding of its complexities.
• Has not demonstrated necessary proficiency in job duties despite attempts to improve performance.
• Has not shown significant improvement in job knowledge since hire date.
• Frequently requires assistance from colleagues to complete tasks within job knowledge.
• Appears to have limited understanding of company’s policies and procedures.
• Has not demonstrated ability to apply job knowledge to real-world situations.
• Lacks necessary training and experience to perform job duties effectively.
• Has not demonstrated understanding of importance of job duties to company’s success.
• Consistently fails to meet expectations set for job performance.
• Struggles to keep up with changes in industry due to limited job knowledge.
• Has not shown initiative to improve job knowledge or seek additional training.

Planning and organizing performance review phrases

Giving feedback on planning and organizing during performance reviews helps employees work more efficiently . It reminds them to set goals, prioritize tasks , and manage time effectively. Improving these skills leads to better results for the organization.

Meets or exceed expectations

• Demonstrates good organizational and planning skills.
• Adheres to deadlines and meets production benchmarks.
• Prioritizes tasks effectively based on importance and urgency.
• Allocates sufficient time and resources to complete projects according to deadlines.
• Schedules work systematically and maintains detailed work plans.
• Anticipates risks and roadblocks in advance to plan contingencies.
• Delegates tasks based on skills and workload of team members.
• Monitors progress regularly and makes adjustments to plans proactively.
• Maintains organized documentation, records, and reports on ongoing work.
• Schedules important meetings to ensure timely coordination and progress.
• Plans budgets effectively and completes projects within allocated cost estimates.
• Manages time efficiently and completes tasks as scheduled without delays.
• Establishes standard operating procedures for efficient task completion.
• Plans for potential emergencies and contingencies in advance.
• Schedules work in a manner that prioritizes quality over quantity.
• Ensures proper coordination between different teams and departments.
• Maintains a calendar of important dates and deadlines to track progress.
• Schedules work in a manner that balances multiple ongoing projects.
• Plans and schedules work to achieve objectives within given timeframes.
• Prioritizes new tasks based on strategic organizational goals and objectives.
• Schedules tasks for optimum resource utilization and efficiency.
• Finds it difficult to plan an action without instruction.
• Fails to resolve problems in a timely manner.
• Finds it challenging to determine priorities among competing demands on time.
• Has trouble planning work schedule around deadlines and commitments.
• Requires frequent supervision to stay on track and complete tasks.
• Gets easily distracted and has difficulties managing interruptions.
• Fails to anticipate resource requirements and bottlenecks in advance.
• Struggles to adapt plans when priorities change or issues arise.
• Finds it hard to delegate tasks and monitor progress independently.
• Does not maintain documentation and records work updates properly.
• Has difficulties coordinating with others and sharing status updates.
• Lacks attention to detail and often misses important planning steps.
• Unable to estimate time requirements accurately for projects.
• Does not consider quality standards while scheduling work.
• Fails to identify and mitigate risks proactively in project plans.
• Unable to adapt to changes in priorities or scope without issues.
• Struggles to think ahead and anticipate future planning requirements.
• Unable to allocate budgets effectively for projects and tasks.
• Requires reminders to schedule important client or vendor meetings.

Performance review phrases time management

Giving feedback on time management during performance reviews helps employees work more efficiently and meet deadlines. It reminds them to prioritize tasks and manage their workload effectively. Improving time management skills leads to better performance and outcomes for the organization.

Performance review time management phrases

• Performs tasks with dedication and always accomplishes them on time.
• Demonstrates the ability to manage various tasks and complete them punctually.
• Uses time effectively to address both major and minor responsibilities weekly.
• Divides time logically to achieve set goals.
• Sets clear priorities and objectives to remain focused on important tasks.
• Prioritizes tasks and efficiently completes them within given timeframes.
• Prepares detailed schedules and accurately estimates task durations.
• Avoids distractions to maximize productivity.
• Allocates sufficient buffer time for contingencies and revisions.
• Multitasks effectively without compromising work quality.
• Periodically re-evaluates schedules and adjusts timelines proactively.
• Delegates tasks appropriately for optimal workload distribution.
• Regularly monitors progress against schedules and deadlines.
• Consistently completes tasks on time and manages time effectively.
• Respects others’ time and fulfills commitments as promised.
• Transparently shares status and challenges regarding timelines.
• Manages time effectively, even when faced with unexpected challenges.
• Highly organized and effectively manages time to meet all deadlines.
• Unable to manage time effectively, repeatedly missing project deadlines.
• Needs to improve time management skills for better efficiency.
• Should create weekly work plans to optimize task performance.
• Struggles to complete tasks due to ineffective time management.
• Takes excessive time to complete tasks, requiring better weekly planning.
• Fails to prioritize tasks and loses focus on critical assignments.
• Underestimates task durations.
• Procrastinates and delays tasks until the last minute.
• Easily distracted by social media or non-work related activities.
• Lacks planning and scheduling skills to manage work effectively.
• Ineffective in delegating tasks.
• Fails to communicate proactively about delays or missed deadlines.
• Does not set clear objectives or priorities for work.
• Unable to estimate realistic timelines for tasks and projects.
• Does not regularly monitor progress against schedules and deadlines.
• Disregards others’ time and frequently misses commitments.
• Does not take ownership of work and blames external factors for delays.

Performance review phrases attitude

Providing feedback on attitude during performance reviews is important for a positive workplace . It emphasizes the value of teamwork and productivity, helping employees understand how their behavior affects colleagues and the organization’s culture .

• Builds an atmosphere of trust within the team.
• Cheerful attitude uplifts others in his presence.
• Never complains about the job or colleagues.
• Focuses on the positives when dealing with problems.
• Enthusiastically motivates other team members.
• Finds opportunities to praise others for their efforts and accomplishments.
• Maintains a positive outlook even during stressful times.
• Energy and optimism are contagious.
• Makes others feel valued and respected.
• Looks for solutions rather than dwelling on problems.
• Smile and friendly manner create a pleasant work environment.
• Finds the good in every situation.
• Positivity raises the morale of those around him.
• Makes others feel heard and encourages open communication.
• Optimism is contagious and lifts the spirits of colleagues.
• Looks for lessons in failures and mistakes.
• Encouragement and support motivate others to do their best.
• Brings a sense of fun to work.
• Finds ways to acknowledge others for their efforts regularly.
• Friendly demeanor puts others at ease.
• Expresses appreciation for colleagues and their contributions.
• Enthusiasm is contagious and inspires hard work.
• Focuses on shared goals and teamwork rather than individual accomplishments.
• Positivity makes him a pleasure to work with.
• Finds ways to learn from both successes and failures.
• Can-do attitude boosts productivity.
• Makes others feel their contributions are valued.
• Upbeat manner keeps the team working together harmoniously.
• Language and voice level can be inappropriate.
• Tends to trigger problems between coworkers.
• Displays an overly sensitive and pessimistic personality, focusing too much on negatives.
• Talks negatively about other team members.
• Needs to focus on the positive aspects of the job and team.
• Complaints undermine team morale.
• Dwells excessively on problems rather than seeking solutions.
• Contributes to tension and friction within the team.
• Often has troubles with coworkers, easily angered and argumentative.
• Pessimism saps the energy of colleagues.
• Finds fault easily and fails to acknowledge others’ efforts.
• Takes criticism too personally and becomes defensive.
• Blames others and refuses to accept responsibility for mistakes.
• Lacks tact and consideration in interactions.
• Needs to control temper and attitude, avoiding strong reactions to negatives.
• Fails to acknowledge colleagues’ good work.
• Irritability negatively impacts morale and team cohesion.
• Criticism of colleagues breeds resentment and mistrust.
• Sees setbacks as personal failures rather than learning opportunities.
• Complaints and criticisms distract from productive discussions.
• Contributes more problems than solutions.
• Lacks emotional control and self-awareness in interactions.
• Focuses excessively on minor issues rather than larger goals.

Ending a performance review with closing comments is an opportunity to summarize key points, express appreciation, and set expectations for the future.

Here’s how you could do it:

“Thank you for your dedication and commitment throughout this review process. Your hard work and achievements are greatly valued and appreciated. As we move forward, I encourage you to continue building on your strengths and addressing areas for improvement. Thank you again for your contributions to our team.”

For a simple, yet effective method of employee evaluation, download this free 9 box grid template or this free 360 degree feedback template .

Performance evaluation software

Conducting performance reviews can consume a significant amount of your valuable time and require considerable effort to ensure efficiency. Consequently, they are often overlooked or not taken seriously. However, they are among the most useful tools for enhancing workforce productivity and fostering teamwork, thereby sustaining the organization in the long term.

The most effective way to conduct performance reviews is through HR (human resources) software. Factorial, an HR software solution , offers a comprehensive set of performance management tools and analytics . To learn more about how Factorial can streamline your HR processes by centralizing them in a single platform —rather than scattered across spreadsheets, emails, and paperwork— book a demo to chat with an HR product specialist by clicking the banner below or the button in the top right corner!

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The most recent updated version of this chapter is at: https://opentext.ku.edu/teams/chapter/performance-evaluation/

Introduction

Content in this chapter is available from the Open Stax Exchange.

Learning Outcomes

After reading this chapter, you should be able to answer these questions:

How do organizations effectively use performance appraisals to improve individual job performance, and what are the limitations inherent in the use of various appraisal systems?

What practices are used in the performance appraisal process?

• How do managers give effective feedback to subordinates?

How do organizations choose the best appraisal system for their organization?

How do managers and organizations use incentives and rewards effectively to secure the best possible performance from employees?

EXPLORING MANAGERIAL CAREERS

Two performance appraisal interviews.

“Janet, thanks for coming in. As you know, it’s that time of year again. I’ve been going over this performance appraisal form and have written in my evaluation. I’d like you to look it over and then sign it.”

Janet looked over her ratings, which were nearly all in the “satisfactory” range. Even the category of dependability was marked “satisfactory”; yet, it was Janet who came in on three different occasions to cover for workers in her group who were absent for one reason or another. Janet mentioned this issue to her boss, Ken.

“Well, Janet, you’re right and that’s exactly what I expect of my employees. You know this is your first year here and you can’t expect to reach the top in one jump. But I like your style and if you keep it up, who knows how far you’ll go.”

Twenty-four minutes after the interview began, Janet left, bewildered and disappointed. She had worked hard during her first year; in fact, she had gone the extra mile on a few occasions, and now she was more confused than ever about what was expected of her and what constituted good performance. “Maybe it just doesn’t pay to work hard.”

Two weeks before their scheduled interview, Mary asked Ron to review his goals and accomplishments for the last six months and to note any major changes in his job that had taken place during that period. In the meantime, Mary pulled out the file in which she had periodically recorded both positive and negative specific incidents over the last six months concerning Ron’s performance. She also reviewed the goals they had jointly set at the end of the last review and thought carefully about not only the possible goals for the next six months but longer-term development needs and goals that might be appropriate for Ron.

On the day of the interview, both Mary and Ron came well prepared to review the past six months as well as to think about and plan for the next performance period and beyond. The interview took nearly two hours. After candidly discussing Ron’s past performance and the extent to which both sides felt he had or had not accomplished the goals for that period, they began to focus on what should be accomplished in the future. The discussion caused both sides to make changes in their original evaluations and ideas about targets for the future. When it was over, Ron left more motivated than before and confident that even though he had areas in which he could improve, he had a bright future ahead of him if he continued to be motivated and work hard.

Performance Appraisal Systems

Performance appraisals  are one of the most important and often one of the most mishandled aspects of management. Typically, we think of performance appraisals as involving a boss evaluating a subordinate. However, performance appraisals increasingly involve subordinates appraising bosses through a feedback process known as 360 feedback, 1  customers appraising providers, and peers evaluating coworkers.

Whether appraisals are done by subordinates, peers, customers, or superiors, the process itself is vital to the lifeblood of the organization. Performance appraisal systems provide a means of systematically evaluating employees across various performance dimensions to ensure that organizations are getting what they pay for. They provide valuable feedback to employees and managers, and they assist in identifying promotable people as well as problems. However, such appraisals are meaningless unless they are accompanied by an effective feedback system that ensures that the employee gets the right messages concerning performance.

Reward systems represent a powerful motivational force in organizations, but this is true only when the system is fair and tied to performance. Because a variety of approaches to appraising performance exists, managers should be aware of the advantages and disadvantages of each. In turn, an understanding of reward systems will help managers select the system best suited to the needs and goals of the organization.

Performance appraisal systems serve a variety of functions of central importance to employees. Appraisal techniques practiced today are not without problems, though. Managers should keep abreast of recent developments in compensation and reward systems so they can modify existing systems when more appropriate alternatives become available.

A key management responsibility has always been to oversee and develop subordinates. In fact, it has been said that every manager is a human resource manager. Nowhere is this truer than with regard to evaluating and rewarding subordinates. Managers are consistently involved with employee training and development, monitoring employee performance, providing job-related feedback, and administering rewards.

In this chapter, we examine three interrelated aspects of the performance appraisal and reward process. As  Figure 2  shows, this process moves from evaluating employee performance to providing adequate and constructive feedback to determining discretionary rewards. Where effort and performance are properly evaluated and rewarded, we would expect to see more stable and consistent job performance. On the other hand, where such performance is only evaluated intermittently or where the appraisal and review process is poorly done, we would generally see less consistent performance. We begin our discussion with a look at the nature of appraisals.

We begin by examining three aspects of performance appraisal systems: (1) the uses of performance appraisals, (2) problems found in performance appraisals, and (3) methods for reducing errors in the appraisal system. This overview will provide a foundation for studying specific techniques of performance appraisal. Those interested in more detailed information on performance appraisal systems may wish to consult books on personnel administration or compensation.

Uses of Performance Appraisals

In most work organizations, performance appraisals are used for a variety of reasons. These reasons range from improving employee productivity to developing the employees themselves. This diversity of uses is well documented in a study of why companies use performance appraisals. 2 Traditionally, compensation and performance feedback have been the most prominent reasons organizations use performance appraisals.

Feedback to employees.  Performance appraisals provide feedback to employees about quantity and quality of job performance. Without this information, employees have little knowledge of how well they are doing their jobs and how they might improve their work.

Self-development.  Performance appraisals can also serve as an aid to employee self-development. Individuals learn about their strengths and weaknesses as seen by others and can initiate self-improvement programs (see discussion on behavioral self-management programs).

Reward systems.  In addition, appraisals may form the bases of organizational reward systems—particularly merit-based compensation plans.

Personnel decisions.  Performance appraisals serve personnel-related functions as well. In making personnel decisions, such as those relating to promotions, transfers, and terminations, they can be quite useful. Employers can make choices on the basis of information about individual talents and shortcomings. In addition, appraisal systems help management evaluate the effectiveness of its selection and placement functions. If newly hired employees generally perform poorly, managers should consider whether the right kind of people are being hired in the first place.

Training and development.  Finally, appraisals can help managers identify areas in which employees lack critical skills for either immediate or future performance. In these situations, new or revised training programs can be established to further develop the company’s human resources.

It is apparent that performance appraisal systems serve a variety of functions in organizations. In light of the importance of these functions, it is imperative that the accuracy and fairness of the appraisal be paramount considerations in the evaluation of a system. Many performance appraisal systems exist. It is the manager’s job to select the technique or combination of techniques that best serves the particular needs (and constraints) of the organization. Before considering these various techniques, let us look at some of the more prominent problems and sources of error that are common to several of them.

Problems with Performance Appraisals

A number of problems can be identified that pose a threat to the value of appraisal techniques. Most of these problems deal with the related issues of the validity and reliability of the instruments or techniques themselves.  Validity  is the extent to which an instrument actually measures what it intends to measure, whereas  reliability  is the extent to which the instrument consistently yields the same results each time it is used. Ideally, a good performance appraisal system will exhibit high levels of both validity and reliability. If not, serious questions must be raised concerning the utility (and possibly the legality) of the system.

It is possible to identify several common sources of error in performance appraisal systems. These include: (1) central tendency error, (2) strictness or leniency error, (3) halo effect, (4) recency error, and (5) personal biases.

Central Tendency Error.  It has often been found that supervisors rate most of their employees within a narrow range. Regardless of how people actually perform, the rater fails to distinguish significant differences among group members and lumps everyone together in an “average” category. This is called  central tendency error  and is shown in  Figure 3 . In short, the central tendency error is the failure to recognize either very good or very poor performers.

Strictness or Leniency Error.  A related rating problem exists when a supervisor is overly strict or overly lenient in evaluations (see  Figure 3 ). In college classrooms, we hear of professors who are “tough graders” or, conversely, “easy A’s.” Similar situations exist in the workplace, where some supervisors see most subordinates as not measuring up to their high standards, whereas other supervisors see most subordinates as deserving of a high rating. As with central tendency error,  strictness error  and  leniency error  fail to distinguish adequately between good and bad performers and instead relegate almost everyone to the same or related categories.

Halo Effect.  The  halo effect  exists where a supervisor assigns the same rating to each factor being evaluated for an individual. For example, an employee rated above average on quantity of performance may also be rated above average on quality of performance, interpersonal competence, attendance, and promotion readiness. In other words, the supervisor cannot effectively differentiate between relatively discrete categories and instead gives a global rating.

These types of bias are based on our perceptions of others. The halo effect occurs when managers have an overly positive view of a particular employee. This can impact the objectivity of reviews, with managers consistently giving an employee high ratings and failing to recognize areas for improvement.

Whether positive or negative, we also have a natural tendency to confirm our preconceived beliefs about people in the way we interpret or recall performance, which is known as confirmatory bias.

For example, a manager may have a preconception that her male report is more assertive. This could cause her to recall instances more easily in which her report asserted his position during a meeting. On the other hand, she may perceive her female report to be less assertive, predisposing her to forget when the report suggested an effective strategy or was successful in a tough negotiation.

The halo effect is often a consequence of people having a similarity bias for certain types of people. We naturally tend to favor and trust people who are similar to us. Whether it’s people who also have a penchant for golf or people who remind us of a younger version of ourselves, favoritism that results from a similarity bias can give certain employees an unfair advantage over others. This can impact a team to the point that those employees may receive more coaching, better reviews and, as a result, more opportunities for advancement. 3

Recency Error.  Oftentimes evaluators focus on an employee’s most recent behavior in the evaluation process. This is known as the  recency error . That is, in an annual evaluation, a supervisor may give undue emphasis to performance during the past months—or even weeks—and ignore performance levels prior to this. This practice, if known to employees, leads to a situation where employees may “float” for the initial months of the evaluation period and then overexert themselves in the last few months or weeks prior to evaluation. This practice leads to uneven performance and contributes to the attitude of “playing the game.”

Personal Biases.  Finally, it is not uncommon to find situations in which supervisors allow their own personal biases to influence their appraisals. Such biases include like or dislike for someone, as well as racial and sexual biases. Personal biases can interfere with the fairness and accuracy of an evaluation and are illegal in many situations.

Reducing Errors in Performance Appraisals

A number of suggestions have been advanced recently to minimize the effects of various biases and errors on the performance appraisal process. 4  When errors are reduced, more accurate information is available for personnel decisions and personal development. These methods for reducing error include

• ensuring that each dimension or factor on a performance appraisal form represents a single job activity instead of a group of job activities.
• avoiding terms such as  average , because different evaluators define the term differently.
• ensuring that raters observe subordinates on a regular basis throughout the evaluation period. It is even helpful if the rater takes notes for future reference.
• keeping the number of persons evaluated by one rater to a reasonable number. When one person must evaluate many subordinates, it becomes difficult to discriminate. Rating fatigue increases with the number of ratees.
• ensuring that the dimensions used are clearly stated, meaningful, and relevant to good job performance.
• training raters so they can recognize various sources of error and understand the rationale underlying the evaluation process.

Using mechanisms like these, better employee ratings that can have greater meaning both for the individual employee and the organization will result.

CONCEPT CHECK

• What are performance appraisals, and how are they used in organizations?
• How are performance appraisals used as a reward system, and what problems can they cause?

Techniques of Performance Appraisal

Organizations use numerous methods to evaluate personnel. We will summarize several popular techniques. Although countless variations on these themes can be found, the basic methods presented provide a good summary of the commonly available techniques. Following this review, we will consider the various strengths and weaknesses of each technique. Six techniques are reviewed here: (1) graphic rating scales, (2) critical incident technique, (3) behaviorally anchored rating scales, (4) behavioral observation scales, (5) management by objectives, and (6) assessment centers.

Graphic Rating Scales

Certainly, the most popular method of evaluation used in organizations today is the  graphic rating scale . One study found that 57 percent of the organizations surveyed used rating scales, and another study found the figure to be 65 percent. 5  Although this method appears in many formats, the supervisor or rater is typically presented with a printed or online form that contains both the employee’s name and several evaluation dimensions (quantity of work, quality of work, knowledge of job, attendance). The rater is then asked to rate the employee by assigning a number or rating on each of the dimensions. An example of a graphic rating scale is shown in  Table 1 .

By using this method, if we assume that evaluator biases can be minimized, it is possible to compare employees objectively. It is also possible to examine the relative strengths and weaknesses of a single employee by comparing scores on the various dimensions.

However, one of the most serious drawbacks of this technique is its openness to central tendency, strictness, and leniency errors. It is possible to rate almost everyone in the middle of the scale or, conversely, at one end of the scale. In order to control for this, some companies have assigned required percentage distributions to the various scale points. Supervisors may be allowed to rate only 10 percent of their people outstanding and are required to rate 10 percent unsatisfactory, perhaps assigning 20 percent, 40 percent, and 20 percent to the remaining middle categories. By doing this, a distribution is forced within each department. However, this procedure may penalize a group of truly outstanding performers or reward a group of poor ones.

Critical Incident Technique

With the  critical incident technique  of performance appraisal, supervisors record incidents, or examples, of each subordinate’s behavior that led to either unusual success or unusual failure on some aspect of the job. These incidents are recorded in a daily or weekly log under predesignated categories (planning, decision-making, interpersonal relations, report writing). The final performance rating consists of a series of descriptive paragraphs or notes about various aspects of an employee’s performance (see  Table 2 ).

Job Knowledge —Technical and/or Specialized—possible considerations:

• shows exceptional knowledge in methods, materials, and techniques; applies in a resourceful and practical manner
• stays abreast of development(s) in field and applies to job
• “keeps up” on latest material in her special field
• participates in professional or technical organizations pertinent to her activities

Performance on Human Relations

Ability to Communicate —possible considerations:

• gives logical, clear-cut, understandable instructions on complex problems
• uses clear and direct language in written and oral reporting
• organizes presentations in logical order and in order of importance
• provides supervisor and subordinates with pertinent and adequate information
• tailors communications approach to group or individual
• keeps informed on how subordinates think and feel about things

Results Achieved through Others —possible considerations:

• develops enthusiasm in others that gets the job done
• has respect and confidence of others
• recognizes and credits skills of others
• coordinates well with other involved groups to get the job done

The critical incident method provides useful information for appraisal interviews, and managers and subordinates can discuss specific incidents. Good qualitative information is generated. However, because little quantitative data emerge, it is difficult to use this technique for promotion or salary decisions. The qualitative output here has led some companies to combine the critical incident technique with one of the quantitative techniques, such as the rating scale, to provide different kinds of feedback to the employees.

Behaviorally Anchored Rating Scales

An appraisal system that has received increasing attention in recent years is the  behaviorally anchored rating scale  (BARS). This system requires considerable work prior to evaluation but, if the work is carefully done, can lead to highly accurate ratings with high inter-rater reliability. Specifically, the BARS technique begins by selecting a job that can be described in observable behaviors. Managers and personnel specialists then identify these behaviors as they relate to superior or inferior performance.

An example of this is shown in  Figure 4 , where the BARS technique has been applied to the job of college professor. As shown, as one moves from extremely poor performance to extremely good performance, the performance descriptions, or behavioral anchors, increase. Oftentimes, six to ten scales are used to describe performance on the job. Figure 4  evaluates the professor’s organizational skills. Other scales could relate to the professor’s teaching effectiveness, knowledge of the material, availability to students, and fairness in grading. Once these scales are determined, the evaluator has only to check the category that describes what she observes on the job, and the employee’s rating is simultaneously determined. The BARS technique has several purported advantages. In particular, many of the sources of error discussed earlier (central tendency, leniency, halo) should be significantly reduced because raters are considering verbal descriptions of specific behaviors instead of general categories of behaviors, such as those used in graphic rating scales. In addition, the technique focuses on job-related behaviors and ignores less relevant issues such as the subordinate’s personality, race, or gender. This technique should also lead to employees being less defensive during performance appraisals, because the focus of the discussion would be actual measured behaviors, not the person. Finally, BARS can aid in employee training and development by identifying those domains needing most attention.

On the negative side, as noted above, considerable time and effort in designing the forms are required before the actual rating. Because a separate BARS is required for each distinct job, it is only cost-efficient for common jobs. Finally, because the technique relies on observable behaviors, it may have little applicability for such jobs in such areas as research science (and sometimes management), where much of the work is mental and relevant observable behaviors are difficult to obtain.

Behavioral Observation Scales

The  behavioral observation scale  (BOS) is similar to BARS in that both focus on identifying observable behaviors as they relate to performance. It is, however, less demanding of the evaluator. Typically, the evaluator is asked to rate each behavior on a scale from 1 to 5 to indicate the frequency with which the employee exhibits the behavior. Evaluation of an employee’s performance on a particular dimension is derived by summing the frequency ratings for the behaviors in each dimension.

For example, in  Table 3  we can see an example of a form to evaluate a manager’s ability to overcome resistance to change. The rater simply has to circle the appropriate numbers describing observed behaviors and get a summary rating by adding the results. The BOS technique is easier to construct than the BARS and makes the evaluator’s job somewhat simpler. Even so, this is a relatively new technique that is only now receiving some support in industry.

Management by Objectives

A popular technique for evaluating employees who are involved in jobs that have clear quantitative output is  management by objectives  (MBO). Although the concept of MBO encompasses much more than just the appraisal process (incorporating an organization-wide motivation, performance, and control system), we will focus here on its narrower application to evaluating employee performance. MBO is closely related to the goal-setting theory of motivation.

Under MBO, individual employees work with their supervisor to establish goals and objectives for which they will be responsible during the coming year. These goals are stated in clear language and relate to tasks that are within the domain of the employee. An example of these goals for a sales representative is shown in  Table 4 . Following a specified period of time, the employee’s performance is compared to the preset goals to determine the extent to which the goals have been met or exceeded.

Several advantages of MBO have been observed. These include the ability to do better planning; improved motivation, because of knowledge of results; fairer evaluations, done on the basis of results rather than personality; improved commitment through participation; and improved supervisory skills in such areas as listening, counseling, and evaluating. On the negative side, however, MBO has been criticized because it emphasizes quantitative goals at the expense of qualitative goals and often creates too much paperwork. It is difficult to compare performance levels among employees because most are responsible for different goals. Sometimes the implementation of MBO goals are autocratic and therefore ineffective or even counterproductive. As discussed in the study of motivation, goals must be accepted to be effective. Finally, in order to be successful, MBO implementation must have constant attention and support from top management; MBO does not run itself. In the absence of this support, the technique loses legitimacy and often falls into disrepair.

Assessment Centers

A relatively new method of evaluation is the  assessment center .  Assessment centers are unique among appraisal techniques in that they focus more on evaluating an employee’s long-range potential to an organization than on her performance over the past year. They are also unique in that they are used almost exclusively among managerial personnel.

An assessment center consists of a series of standardized evaluations of behavior based on multiple inputs. Over a two- or three-day period (away from the job), trained observers make judgments on managers’ behavior in response to specially developed exercises. These exercises may consist of in-basket exercises, role-playing, and case analyses, as well as personal interviews and psychological tests. An example of an assessment center program is shown in  Table 5 .

On the basis of these exercises, the trained observers make judgments on employees’ potential for future managerial assignments in the organization. More specifically, information is obtained concerning employees’ interpersonal skills, communication ability, creativity, problem-solving skills, tolerance for stress and ambiguity, and planning ability. This technique has been used successfully by some of the largest corporations in the United States, including AT&T, IBM, and General Electric.

Results from a series of assessment center programs appear promising, and the technique is growing in popularity as a means of identifying future managerial potential. For example, Coca-Cola USA experimented with using assessment centers to select its managerial personnel. After a detailed study, the company found that those selected in this way were only one-third as likely to leave the company or be fired than those selected in the traditional way. Although the assessment center approach added about 6 percent to the cost of hiring, the lower turnover rate led to large overall savings. 6

Some problems with the technique have been noted. In particular, because of the highly stressful environment created in assessment centers, many otherwise good managers may simply not perform to their potential. Moreover, the results of a poor evaluation in an assessment center may be far-reaching; individuals may receive a “loser” image that will follow them for a long time. And, finally, there is some question concerning exactly how valid and reliable assessment centers really are in predicting future managerial success. 7 Despite these problems, assessment centers remain a popular vehicle in some companies for developing and appraising managerial potential.

ETHICS IN PRACTICE

Tesla’s performance review.

At Tesla, the automotive giant, the standards are set extremely high for their employees. In 2017, Tesla conducted its annual performance reviews as it does each year. Due to the review process, the company sees both voluntary and involuntary departures. During the review process, the managers discuss “results that were achieved, as well as how those results were achieved” with their employees.* Tesla also has a performance recognition and compensation program that includes equity rewards as well as promotions in some cases, along with the constructive feedback.

The departure of employees during the review period is not unique to Tesla; however, in 2017 there was a large exodus of approximately 700 employees following their employee reviews. Elon Musk, who recently has stepped down from the role of chairman and has been under scrutiny for his behavior,* saw the media coverage of this news as “ridiculous.”

“You have two boxes of equal ability, and one’s much smaller, the big guy’s going to crush the little guy, obviously,” states Musk. “So, the little guy better have a heck of a lot more skill or he’s going to get clobbered. So that is why our standards are high . . . if they’re not high, we will die.”

Overall, approximately 17 percent of their employees were promoted, almost half in manufacturing. As Tesla continues to grow and develop new vehicles, it is consistently pushing the boundaries and pushing its employees to new limits. Performance reviews are of the highest importance for Tesla’s business to succeed; the company needs the best people with the best skills. It is constantly growing and attempting to “suck the labor pool dry” to fill positions at many of its locations and factories.

• What factors do you feel could have changed in Tesla’s approach to its performance reviews?
• How can a high-pressure environment affect an employee’s performance? What factors should be considered to combat these issues?

Comparison of Appraisal Techniques

It is important to consider which appraisal technique or set of techniques may be most appropriate for a given situation. Although there is no simple answer to this question, we can consider the various strengths and weaknesses of each technique. This is done in  Table 6 . It is important to keep in mind that the appropriateness of a particular appraisal technique is in part a function of the purpose for the appraisal. For example, if the purpose of the appraisal is to identify high potential executives, then assessment centers are more appropriate than rating scales.

As would be expected, the easiest and least expensive techniques are also the least accurate. They are also the least useful for purposes of personnel decisions and employee development. Once again, it appears that managers and organizations get what they pay for. If performance appraisals represent an important aspect of organizational life, clearly the more sophisticated—and more time-consuming—techniques are preferable. If, on the other hand, it is necessary to evaluate employees quickly and with few resources, techniques such as the graphic rating scale may be more appropriate. Managers must make cost-benefit decisions about the price (in time and money) they are willing to pay for a quality performance appraisal system.

• What are the techniques and scales used in performance appraisals?
• What are MBOs, and how do they relate to performance appraisals?
• What are assessment centers?
• What types of feedback do performance appraisals provide to all organization members?

Reward Systems in Organizations

After a company has designed and implemented a systematic performance appraisal system and provided adequate feedback to employees, the next step is to consider how to tie available corporate rewards to the outcomes of the appraisal. Behavioral research consistently demonstrates that performance levels are highest when rewards are contingent upon performance. Thus, in this section, we will examine five aspects of reward systems in organizations: (1) functions served by reward systems, (2) bases for reward distribution, (3) intrinsic versus extrinsic rewards, (4) the relationship between money and motivation and, finally, (5) pay secrecy.

Functions of Reward Systems

Reward systems in organizations are used for a variety of reasons. It is generally agreed that reward systems influence the following:

• Job effort and performance.   Following expectancy theory, employees’ effort and performance would be expected to increase when they felt that rewards were contingent upon good performance. Hence, reward systems serve a very basic motivational function.
• Attendance and retention.   Reward systems have also been shown to influence an employee’s decision to come to work or to remain with the organization. This was discussed in the previous chapter.
• Employee commitment to the organization.   It has been found that reward systems in no small way influence employee commitment to the organization, primarily through the exchange process. 9 That is, employees develop ties with organizations when they perceive that the organization is interested in their welfare and willing to protect their interests. This exchange process is shown in Figure 6 To the extent that employee needs and goals are met by the company, we would expect commitment to increase.
• Job satisfaction . Job satisfaction has also been shown to be related to rewards, as discussed in the previous chapter. Edward E. Lawler, a well-known researcher on employee compensation, has identified four conclusions concerning the relationship between rewards and satisfaction: (1) satisfaction with a reward is a function of both how much is received and how much the individual feels should have been received; (2) satisfaction is influenced by comparisons with what happens to others, especially one’s coworkers; (3) people differ with respect to the rewards they value; and (4) some rewards are satisfying because they lead to other rewards. 10
• Occupational and organizational choice.   Finally, the selection of an occupation by an individual, as well as the decision to join a particular organization within that occupation, are influenced by the rewards that are thought to be available in the occupation or organization. To prove this, simply look at the classified section of your local newspaper and notice how many jobs highlight beginning salaries.

Reward systems in organizations have far-reaching consequences for both individual satisfaction and organizational effectiveness. Unfortunately, cases can easily be cited where reward systems have been distorted to punish good performance or inhibit creativity. Consider, for example, the Greyhound Bus Company driver who was suspended for 10 days without pay for breaking a company rule against using a CB radio on his bus. The bus driver had used the radio to alert police that his bus, with 32 passengers on board, was being hijacked by an armed man. The police arrested the hijacker, and the bus driver was suspended for breaking company rules. 11 Such incidents hardly encourage employees to focus their efforts on responsible performance.

Bases for Reward Distribution

A common reality in many contemporary work organizations is the inequity that exists in the distribution of available rewards. One often sees little correlation between those who perform well and those who receive the greatest rewards. At the extreme, it is hard to understand how a company could pay its president $10 to $20 million per year (as many large corporations do) while it pays its secretaries and clerks less than $15,000. Each works approximately 40 hours per week, and both are important for organizational performance. Is it really possible that the president is 1,000 times more important than the secretary, as the salary differential suggests?

How do organizations decide on the distribution of available rewards? At least four mechanisms can be identified. In more cases than we choose to admit, rewards go to those with the greatest  power  (either market power or personal power). In many of the corporations whose presidents earn eight-figure incomes, we find that these same people are either major shareholders in the company or have certain abilities, connections, or status that the company wants. Indeed, a threat of resignation from an important or high-performing executive often leads to increased rewards.

A second possible basis for reward distribution is  equality . Here, all individuals within one job classification would receive the same, or at least similar, rewards. The most common example here can be found among unionized workers, where pay rates are established and standardized with little or no reference to actual performance level. Instead of ability or performance, these systems usually recognize seniority as the key factor in pay raises or promotions.

The basis for the social welfare reward system in this country is need. In large part, the greater the need, the greater the level of support. It is not uncommon to see situations in business firms where need is taken into account in layoff situations—where an employee is not laid off because she is the sole support of a family.

A fourth mechanism used by organizations in allocating rewards is  distributive justice . Under this approach, employees receive (at least a portion of) their rewards as a function of their level of contribution to the organization. The greater the contribution (such as performance), the greater the reward. This mechanism is most prominent in merit-based incentive programs, where pay and bonuses are determined by performance levels.

Extrinsic and Intrinsic Rewards

The variety of rewards that employees can receive in exchange for their contributions of time and effort can be classified as either  extrinsic  or  intrinsic  rewards.  Extrinsic rewards  are external to the work itself. They are administered externally—that is, by someone else (usually management). Examples of extrinsic rewards include wages and salary, fringe benefits, promotions, and recognition and praise from others.

On the other hand,  intrinsic rewards  represent those rewards that are related directly to performing the job. In this sense, they are often described as “self-administered” rewards, because engaging in the task itself leads to their receipt. Examples of intrinsic rewards include feelings of task accomplishment, autonomy, and personal growth and development that come from the job.

In the literature on employee motivation, there is considerable controversy concerning the possible interrelationship of these two kinds of reward. It has been argued (with some research support) that extrinsic rewards tend to drive out the positive effects of some intrinsic rewards and can lead to unethical behavior. 12  Consider, for example, the child next door who begs you to let her help you wash your car. For a young child, this task can carry considerable excitement (and intrinsic motivation). Now, consider what happens on a Saturday afternoon when you need your car washed but the child has other options. What do you do? You offer to pay her this time to help wash your car. What do you think will happen the next time you ask the neighbor to help you wash the car for free? In other words, when extrinsic rewards such as pay are tied closely to performance (called performance-reward contingency),  intrinsic motivation —the desire to do a task because you enjoy it—can decrease.

Also, it is important to keep in mind that because extrinsic rewards are administered by sources external to the individual, their effectiveness rests on accurate and fair monitoring, evaluating, and administration. Implementation can be expensive, and the timing of performance and rewards may not always be close. For example, you may perform well on a task, but unless there is a way for that to be noticed, evaluated, recorded, and rewarded within a reasonable time frame, an extrinsic reward may not have a significant impact. Intrinsic rewards are a function of self-monitoring, evaluation, and administration; consequently, these rewards often are less costly and more effectively administered. For example, even if no one else notices or rewards you for superior performance on a task, you can still reward yourself with a mental pat on the back for a job well done or a sense of satisfaction for overcoming a challenge. The implications of this finding will become apparent when exploring efforts to enrich employees’ jobs.

Money and Motivation: A Closer Look

A recurring debate among managers focuses on the issue of whether money is a primary motivator. Some argue that most behavior in organizational settings is motivated by money (or at least monetary factors), whereas others argue that money is only one of many factors that motivate performance. Whichever group is correct, we must recognize that money can have important motivational consequences for many people in many situations. In fact, money serves several important functions in work settings. 13  These include serving as (1) a goal or incentive, (2) a source of satisfaction, (3) an instrument for gaining other desired outcomes, (4) a standard of comparison for determining relative standing or worth, and (5) a conditional reinforcer where its receipt is contingent upon a certain level of performance. Even so, experience tells us that the effectiveness of pay as a motivator varies considerably. Sometimes there seems to be an almost direct relationship between pay and effort, whereas at other times no such relationship is found. Why? Lawler suggests that certain conditions must be present in order for pay to act as a strong motivator: 14

• Trust levels between managers and subordinates must be high.
• Individual performance must be able to be accurately measured.
• Pay rewards to high performers must be substantially higher than those to poor performers.
• Few, if any, negative consequences for good performance must be perceived.

Under these conditions, a climate or culture is created in which employees have reason to believe that significant performance-reward contingencies truly exist. Given this perception (and assuming the reward is valued), we would expect performance to be increased. 15

Pay Secrecy

Secrecy about pay rates seems to be a widely accepted practice in work organizations, particularly among managerial personnel. It is argued that salary is a personal matter and we should not invade another’s privacy. Available evidence, however, suggests that pay secrecy may have several negative side effects. To begin, it has been consistently found that in the absence of actual knowledge, people have a tendency to  over estimate the pay of coworkers and those above them in the hierarchy. As a result, much of the motivational potential of a differential reward system is lost. 16  Even if an employee receives a relatively sizable salary increase, she may still perceive an inequity compared to what others are receiving. This problem is highlighted in the results of a study by Lawler. In considering the effects of pay secrecy on motivation, Lawler noted:

Almost regardless of how well the individual manager was performing, he felt he was getting less than the average raise. This problem was particularly severe among high performers, since they believed that they were doing well yet received minimal reward. They did not believe that pay was in fact based upon merit. This was ironic, since their pay did reflect performance. . . . Thus, even though pay was tied to performance, these managers were not motivated because they could not see the connection. 17

Pay secrecy also affects motivation via feedback. Several studies have shown the value of feedback in motivating performance (see previous discussion). The problem is that for managers, money represents one of the most meaningful forms of feedback. Pay secrecy eliminates the feedback.

When salary information is open (or at least when the range of percentage increases within a job classification are made known to the people in that group), employees are generally provided with more recognition for satisfactory performance and are often more motivated to perform on subsequent tasks. It is easier to establish feelings of pay equity and trust in the salary administration system. On the other hand, publicizing pay rates and pay raises can cause jealousy among employees and create pressures on managers to reduce perceived inequities in the system. There is no correct position concerning whether pay rates should be secret or open. The point is that managers should not assume a priori that pay secrecy—or pay openness—is a good thing. Instead, careful consideration should be given to the possible consequences of either approach in view of the particular situation in the organization at the time.

• What is the best appraisal system for organizations to adopt?
• How are rewards tied to performance appraisals?

Individual and Group Incentive Plans

We now turn to an examination of various employee incentive programs used by organizations. First, we consider the relative merits of individuals versus group incentive programs. Next, we focus on several relatively new approaches to motivation and compensation. Finally, we suggest several guidelines for effective incentive systems.

Individual versus Group Incentives

Companies usually have choices among various compensation plans and must make decisions about which is most effective for its situation. Incentive systems in organizations are usually divided into two categories on the basis of whether the unit of analysis—and the recipient of the reward—is the individual or a group. Among individual incentive plans, several approaches can be identified, including merit-based compensation (commonly known as merit compensation), piece-rate incentive programs (where people are paid according to the quantity of output), bonus systems of various sorts, and commissions. In each case, rewards are tied fairly directly to the performance level of the individual.

Although individual incentive systems often lead to improved performance, some reservations have been noted. In particular, these programs may at times lead to employees competing with one another, with undesirable results. For instance, department store salespeople on commission may fight over customers, thereby chasing the customers away. After all, customers don’t care who they deal with, only that the service is good. Second, these plans typically are resisted by unions, which prefer compensation to be based on seniority or job classification. Third, where quality control systems are lax, individual incentives such as piece rates may lead employees to maximize units of output while sacrificing quality. And, finally, in order for these programs to be successful, an atmosphere of trust and cooperation is necessary.

In order to overcome some of these shortcomings, many companies have turned to group or organizational incentive plans. Group incentive programs base at least some of an employee’s rewards on group or organization performance. Hence, employees are encouraged to cooperate with one another and with the corporation so that all employees can benefit. Programs such as profit-sharing or gain-sharing plans (discussed below) are designed to tie the employees’ future rewards and prosperity to that of the company and reduce the age-old antagonism between the two. The results are often dramatic.

Creative Pay Practices

Recently, we have seen several innovations in the way corporations approach reward systems. These efforts are designed to facilitate the integration of employee and company interests in a way that maximizes both productivity and quality of working life. Five such creative pay practices should be noted: (1) gain-sharing plans, (2) skills-based incentives, (3) lump-sum pay increases, (4) participative pay decisions, and (5) flexible benefits programs. These approaches, along with their major advantages and drawbacks, are summarized in  Table 7 .

Gain-Sharing Plans.  Giving executives and senior managers bonuses to reflect their contributions to organizational effectiveness is commonplace. In fact, in some companies executive bonuses are often larger than salaries. Recently, companies have increasingly applied this same principle to all employees in the form of  gain-sharing  (profit-sharing) plans. Here, employees are given a chance to share in corporate productivity gains through increased earnings. The greater the productivity gains, the greater the earnings. Several variations on this theme can be found, including the Scanlon Plan, IMPROSHARE, the Ruker Plan, and the Lincoln Electric Plan. Regardless of the title, the basic plan is similar.

For example, under the Scanlon Plan (probably the oldest such program), three operating guidelines are used: (1) each department or division is treated as a business unit for purposes of performance measurement, (2) specific cost measures associated with the production process are identified and agreed to by all parties, and (3) bonuses are paid to all employees according to a predetermined formula tying the amount of the bonus to the actual cost savings realized during the time period. Under such a plan, it is clearly in the employees’ best interest to contribute to cost savings, thereby increasing their own incomes.

EXPANDING AROUND THE GLOBE

Providing feedback in different countries.

Global workplaces are increasing within the world businesses, and it has become a trend to have managers from one country, most likely the country in which the headquarters arise, manage employees abroad. An important consideration when managing globally is how cultural differences can have a profound effect on performance evaluations, negotiations, and criticisms.

For example, oftentimes in the United States, a method of critical feedback in the “hamburger method” (Step 1: Identify tasks. As a group, identify technical steps that would be involved in implementing. Step 2: Identify options for tasks. Split the team into several small groups. Step 3: Combine results.) is acceptable, while other countries give their feedback with just the meal alone. This strategy in the Netherlands and Germany can be off-putting to other cultures, and when you read into another culture’s technique with your own lens of reference, it can feel wrong.

Managing globally means that you need to do your research on which approach for feedback is best received for the employee’s cultural differences. For example, being direct is key when communicating with a Dutch person. In contrast, in England or the United States, criticism is not delivered directly, but with positive pieces wrapped around the negative. In Asian countries, feedback is often avoided or the message is blurred in order to “save face.” With all of these complications and considerations, it is ever more important to acutely understand the culture, the cultural understandings of employees who are direct reports, and also the lens through which feedback is being viewed as well.

• How can a new manager that is working with international employees ensure she is providing reviews in an appropriate manner?
• What methods can a manager employ in her preparation for the review to be successful when providing feedback to employees of different cultures?

Skills-Based Incentives.  Typical compensation programs are tied to job evaluations. In these, jobs are analyzed to assess their characteristics, and then salary levels are assigned to each job on the basis of factors such as job difficulty and labor market scarcity. In other words, pay levels are set on the basis of the job, not the individual. This approach fails to encourage employees to improve their skills on the job, because there is no reward for the improvement. This thinking also keeps all employees in their places and minimizes the possibility of inter-job transfers.

Under the  skills-based incentive  program ,  employees are paid according to their skills level (that is, the  number  of jobs they can perform), regardless of the actual tasks they are allowed to perform. This approach has proved successful in organizations such as Procter & Gamble and General Foods. Employees are encouraged to learn additional skills and are appropriately rewarded. The organization is provided with a more highly trained and more flexible workforce. However, training and compensation costs are necessarily increased, so the program is appropriate only in some situations. The technique is most often seen as part of a larger quality-of-working-life program, where it is associated with job redesign efforts.

Lump-Sum Pay Increases.  Another technique that has received some attention is to allow employees to decide how (that is, in what amounts) they wish to receive their pay raises for the coming year. Under the traditional program, pay raises are paid in equal amounts in each paycheck over the year. Under the alternate plan, employees can elect to receive equal amounts during the year, or they can choose to take the entire raise in one  lump-sum pay increase . This plan allows employees greater discretion over their own financial matters. If an employee wants to use the entire pay raise for a vacation, it can be paid in a lump sum in June. Then, if the employee quits before the end of the year, the unearned part of the pay raise is subtracted from the final paycheck. This plan increases the visibility of the reward to the employee. The employee receives, for example, a $600 pay raise (a rather sizable amount) instead of twelve $50 monthly pay raises. As with the flexible rewards system discussed below, however, the administration costs of the lump-sum plan are greater than those of the traditional method.

Participative Pay Decisions.  In addition, of concern to many managers is the extent to which employees should be involved in decisions over pay raises. This is the issue of  participative pay decisions . Recently, several organizations have been experimenting with involving employees in pay raise decisions, and the results seem to be quite positive. By allowing employees to participate either in the design of the reward system or in actual pay raise decisions (perhaps through a committee), it is argued that decisions of higher quality are made on the basis of greater information. Also, employees then have greater reason to place confidence in the fairness of the decisions. On the negative side, this approach requires considerably more time for both the manager and the participating subordinates. Costs must be weighed against benefits to determine which approach is most suitable for the particular organization and its goals.

Flexible Benefits Systems . A typical fringe benefit package provides the same benefits—and the same number of benefits—to all employees. As a result, individual differences or preferences are largely ignored. Studies by Lawler indicate variations in benefit preferences. 18  For instance, young unmarried men prefer more vacation time, whereas young married men prefer to give up vacation time for higher pay. Older employees want more retirement benefits, whereas younger employees prefer greater income. Through a  flexible benefits program  (also called a “cafeteria benefits program”), employees are allowed some discretion in the determination of their own packages and can make trade-offs, within certain limits. Organizations such as PepsiCo, TRW, and the Educational Testing Service already use such programs. Although certain problems of administration exist with the programs, efforts in this direction can lead to increased need satisfaction among employees.

Which approaches are most effective in motivating employees? This is obviously a difficult question to answer.  One such study asked major employers which of a variety of approaches had been used with a high success level. The results are shown in  Table 8 . Skills-based compensation, earned time off, and  gain sharing  all received high marks from personnel executives, although other programs are also widely supported. It would appear from these results that many approaches can be useful; the choice of which one to use would depend upon the circumstances and goals of a particular organization.

Guidelines for Effective Incentive Programs

Whatever incentive plan is selected, care must be taken to ensure that the plan is appropriate for the particular organization and workforce. In fact, a simple test of the effectiveness of an incentive plan would be as follows: 19

• Does the plan capture attention?  Do employees discuss the plan and take pride in their early successes?
• Do employees understand the plan?  Can employees explain how the plan works, and do they understand what they must do to earn the incentive?
• Does the plan improve communication?  As a result of the plan, do employees understand more about corporate mission, goals, and objectives?
• Does the plan pay out when it should?  Are incentives being paid for desired results, and are they withheld for undesirable results?
• Is the company performing better as a result of the plan?  Are profits or market share up or down? Have any gains resulted in part from the incentive plan?

If a new (or existing) pay plan can meet these tests, it is probably fairly effective in motivating employee performance and should be retained by the organization. If not, perhaps some other approach should be tried. On the basis of such a test, several specific guidelines can be identified to increase the effectiveness of the programs. These include the following: 20

• Any reward system or incentive plan should be as  closely tied to actual job performance  as possible. This point was discussed earlier in this chapter.
• If possible, incentive programs should  allow for individual differences . They should recognize that different people want different outcomes from a job. Flexible benefits programs such as the ones discussed here make an effort to accomplish this.
• Incentive programs should  reflect the type of work that is done  and the structure of the organization. This simply means that the program should be tailored to the particular needs, goals, and structures of a given organization. Individual incentive programs, for example, would probably be less successful among unionized personnel than would group programs such as the Scanlon plan. This point has been clearly demonstrated in research by Lawler, which points out that organizations with traditional management and those with more participative management might approach reward systems quite differently in order to be effective. 21  As shown in  Table 9 , both types of company can be effective as long as their reward systems are congruent with their overall approach to management.
• The incentive program should  be consistent with the culture  and constraints of the organization. Where trust levels are low, for example, it may take considerable effort to get any program to work. In an industry already characterized by high levels of efficiency, basing an incentive system on increasing efficiency even further may have little effect, because employees may see the task as nearly impossible.
• Finally, incentive programs should  be carefully monitored over time  to ensure that they are being fairly administered and that they accurately reflect current technological and organizational conditions. For instance, it may be appropriate to offer sales clerks in a department store an incentive to sell outdated merchandise because current fashion items sell themselves. Responsibility falls on managers not to select the incentive program that is in vogue or used “next door,” but rather to consider the unique situations and needs of their own organizations. Then, with this understanding, a program can be developed and implemented that will facilitate goal-oriented performance.
• What are the differences between individual and group incentives?
• What is the variety of reward incentives available to organizations?

If performance is to be changed or improved, it must be rewarded. To be rewarded, it must be measured. However, great care must be taken to (1) measure important behaviors and outcomes (individual, group, or organizational) and not just those that are easy to measure, (2) measure them with the appropriate technique(s), and (3) tie appropriate rewards to the desired behaviors and outcomes.

Organizations use performance appraisals for several reasons: (1) to provide feedback to employees, (2) to allow for employee self-development, (3) to allocate rewards, (4) to gather information for personnel decisions, and (5) to guide them in developing training and development efforts.

Performance appraisals are subject to several problems, including central tendency error, strictness or leniency error, halo effect, recency error, and personal biases.

Among the most common appraisal systems are graphic rating scales, critical incident technique, behaviorally anchored rating scales, behavioral observation scales, management by objectives, and assessment centers. Assessment centers represent a special case of evaluations in that they focus on assessing an employee’s long-term potential to an organization.

Rewards serve several functions, including (1) stimulating job effort and performance, (2) reducing absenteeism and turnover, (3) enhancing employee commitment, (4) facilitating job satisfaction, and (5) facilitating occupational and organizational choice.

Rewards may be distributed on the basis of power, equality, need, or distributive justice. Distributive justice rests on the principle of allocating rewards in proportion to employee contribution. Intrinsic rewards represent those outcomes that are administered by the employee (e.g., a sense of task accomplishment), whereas extrinsic rewards are administered by others (e.g., wages).

Gain-sharing incentive plans base some of the employees’ pay on corporate profits or productivity. As a result, employees are generally more interested in facilitating corporate performance.  Skills-based incentives  reward employees on the basis of the skills they possess, not the skills they are allowed to use at work. As a result, employees are encouraged to continually upgrade their skill levels.

A lump-sum salary increase simply provides employees with their pay raises at one time (possibly shortly before summer vacation or a major holiday).

Participative pay decisions allow employees some input in determining their pay raises.

Flexible benefits allow employees to choose the fringe benefits that best suit their needs.

A good reward system (1) is closely tied to performance, (2) allows for individual differences, (3) reflects the type of work that is being done, (4) is consistent with the corporate culture, and (5) is carefully monitored over time.

Chapter Review Questions

• Identify the various functions of performance appraisals. How are appraisals used in most work organizations?
• What are some problems associated with performance appraisals?
• Define  validity  and  reliability . Why are these two concepts important from a managerial standpoint?
• How can errors in appraisals be reduced?
• Critically evaluate the advantages and disadvantages of the various techniques of performance appraisal.
• Discuss the role of feedback in employee performance.
• What is the difference between intrinsic and extrinsic rewards?
• Identify the major bases of reward distribution.
• How does money influence employee motivation?
• Discuss the relative merits of individual and group incentive programs.
• Describe the benefits and drawbacks of several of the new approaches to reward systems. Which ones do you feel would be most effective in work organizations?

Management Skills Application Exercises

How would you rate your supervisor.

Instructions:  Think of your current supervisor or one for any job you have held, and evaluate her on the following dimensions. Give a “1” for very poor, a “3” for average, a “5” for outstanding, etc.

Think of a current or previous job, and evaluate the source and quality of the feedback you received from your supervisor. When you are through, refer to  Appendix B  for scoring procedures.

How Much Feedback Are You Getting from Your Job?

Instructions:  Think of a current or previous job. With this in mind, answer the following questions as accurately as possible.

My boss lets me know when I make a mistake.

My coworkers help me improve on the job.

I receive formal evaluations from the company on my job.

My boss always tells me when I do a good job.

This company really appreciates good performance.

When I do something especially well, I receive a “thanks” from my boss.

My coworkers are very appreciative when I do a good job.

My coworkers compliment me on the quality of my work.

My coworkers are very supportive of my efforts.

I know when I have done a good job.

My job provides me with solid feedback on my performance.

I can see the results when I learn to do something better.

C. Solbach. “Feedback through cultural looking glass.” Krauthammer, September 16, 2015, https://www.krauthammer.com/en/publications/personal-development/2017/04/12/12/07/feedback-through-cultural-looking-glass;

M. Abadi. “The exact same sentence from your boss can mean ‘yes,’ ‘no,’ or ‘maybe’ depending on the country where you work.” Business Insider, December 7, 2017, https://www.businessinsider.com/direct-feedback-work-depends-on-culture-2017-12; J. Windust. “An International Approach to 360-Degree Feedback.”

Cognology, July 26, 2016, https://www.cognology.com.au/international-approach-360-degree-feedback/; “Giving Employee Feedback To A Culturally Diverse Workforce.” Impraise Blog, accessed January 26, 2019, https://blog.impraise.com/360-feedback/how-to-handle-cultural-differences-between-branchescountries-in-feedback-behavior-performance-review.

K. Korosec. “Tesla Fires Hundreds of Workers After Their Annual Performance Review.” Fortune , October 14, 2017,http://fortune.com/2017/10/13/tesla-fires-employees/; D. Muoio. “Tesla fired 700 employees after performance reviews in the third quarter.”  Business Insider , November 1, 2017, https://www.businessinsider.com/tesla-fired-700-employees-performance-reviews-2017-11;

J. Wattles. “Elon Musk agrees to pay $20 million and quit as Tesla chairman in deal with SEC.”  Money , September 30, 2018, https://money.cnn.com/2018/09/29/technology/business/elon-musk-tesla-sec-settlement/index.html.

Problem Solving in Teams and Groups (updated at: https://opentext.ku.edu/teams/) Copyright © by Cameron W. Piercy, Ph.D. is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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14 Performance Evaluation

Introduction.

Content in this chapter is available from Organizational Behavior and the Organizational Justice Wikipedia page .

EXPLORATION ACTIVITY

Two performance appraisal interviews.

Janet’s Performance Evaluation: “Janet, thanks for coming in. As you know, it’s that time of year again. I’ve been going over this performance appraisal form and have written in my evaluation. I’d like you to look it over and then sign it.”

Janet looked over her ratings, which were nearly all in the “satisfactory” range. Even the category of dependability was marked “satisfactory”; yet, it was Janet who came in on three different occasions to cover for workers in her group who were absent for one reason or another. Janet mentioned this issue to her boss, Ken.

“Well, Janet, you’re right and that’s exactly what I expect of my employees. You know this is your first year here and you can’t expect to reach the top in one jump. But I like your style and if you keep it up, who knows how far you’ll go.”

Twenty-four minutes after the interview began, Janet left, bewildered and disappointed. She had worked hard during her first year; in fact, she had gone the extra mile on a few occasions, and now she was more confused than ever about what was expected of her and what constituted good performance. “Maybe it just doesn’t pay to work hard.”

Ron’s Performance Evaluation: Two weeks before their scheduled interview, Mary asked Ron to review his goals and accomplishments for the last six months and to note any major changes in his job that had taken place during that period. In the meantime, Mary pulled out the file in which she had periodically recorded both positive and negative specific incidents over the last six months concerning Ron’s performance. She also reviewed the goals they had jointly set at the end of the last review and thought carefully about not only the possible goals for the next six months but longer-term development needs and goals that might be appropriate for Ron.

On the day of the interview, both Mary and Ron came well prepared to review the past six months as well as to think about and plan for the next performance period and beyond. The interview took nearly two hours. After candidly discussing Ron’s past performance and the extent to which both sides felt he had or had not accomplished the goals for that period, they began to focus on what should be accomplished in the future. The discussion caused both sides to make changes in their original evaluations and ideas about targets for the future. When it was over, Ron left more motivated than before and confident that even though he had areas in which he could improve, he had a bright future ahead of him if he continued to be motivated and work hard.

Performance Appraisal Systems

Performance appraisals are one of the most important and often one of the most mishandled aspects of management. Typically, we think of performance appraisals as involving a boss evaluating a subordinate. However, performance appraisals increasingly involve subordinates appraising bosses through a feedback process known as 360-degree feedback , where clients, colleagues, and supervisors all appraise the person being evaluated (Johnson, 2018).

Whether appraisals are done by subordinates, peers, customers, or superiors, the process itself is vital to the lifeblood of the organization. Performance appraisal systems provide a means of systematically evaluating employees across various performance dimensions to ensure that organizations are getting what they pay for. They provide valuable feedback to employees and managers, and they assist in identifying promotable people as well as problems. However, such appraisals are meaningless unless they are accompanied by an effective feedback system that ensures that the employee gets the right messages concerning performance.

Reward systems represent a powerful motivational force in organizations, but this is true only when the system is fair and tied to performance. Because a variety of approaches to appraising performance exists, managers should be aware of the advantages and disadvantages of each. In turn, an understanding of reward systems will help managers select the system best suited to the needs and goals of the organization.

A key management responsibility has always been to oversee and develop subordinates. In fact, it has been said that every manager is a human resource manager. Nowhere is this truer than with regard to evaluating and rewarding subordinates. Managers are consistently involved with employee training and development, monitoring employee performance, providing job-related feedback, and administering rewards.

In this chapter, we examine three interrelated aspects of the performance appraisal and reward process. As  Figure 2 shows, this process moves from evaluating employee performance to providing adequate and constructive feedback to determining discretionary rewards. Where effort and performance are properly evaluated and rewarded, we would expect to see more stable and consistent job performance. On the other hand, where such performance is only evaluated intermittently or where the appraisal and review process is poorly done, we would generally see less consistent performance. We begin our discussion with a look at the nature of appraisals. We begin by examining three aspects of performance appraisal systems: (1) the uses of performance appraisals, (2) problems found in performance appraisals, and (3) methods for reducing errors in the appraisal system.

Uses of Performance Appraisals

In most work organizations, performance appraisals are used for a variety of reasons. These reasons range from improving employee productivity to developing the employees themselves. This diversity of uses is well documented in a study of why companies use performance appraisals. Traditionally, compensation and performance feedback have been the most prominent reasons organizations use performance appraisals.

Feedback to employees.  Performance appraisals provide feedback to employees about quantity and quality of job performance. Without this information, employees have little knowledge of how well they are doing their jobs and how they might improve their work.

Self-development.  Performance appraisals can also serve as an aid to employee self-development. Individuals learn about their strengths and weaknesses as seen by others and can initiate self-improvement programs (see discussion on behavioral self-management programs).

Reward systems.  In addition, appraisals may form the bases of organizational reward systems—particularly merit-based compensation plans.

Personnel decisions.  Performance appraisals serve personnel-related functions as well. In making personnel decisions, such as those relating to promotions, transfers, and terminations, they can be quite useful. Employers can make choices on the basis of information about individual talents and shortcomings. In addition, appraisal systems help management evaluate the effectiveness of its selection and placement functions. If newly hired employees generally perform poorly, managers should consider whether the right kind of people are being hired in the first place.

Training and development.  Finally, appraisals can help managers identify areas in which employees lack critical skills for either immediate or future performance. In these situations, new or revised training programs can be established to further develop the company’s human resources.

It is apparent that performance appraisal systems serve a variety of functions in organizations. In light of the importance of these functions, it is imperative that the accuracy and fairness of the appraisal be paramount considerations in the evaluation of a system. Many performance appraisal systems exist. It is the manager’s job to select the technique or combination of techniques that best serves the particular needs (and constraints) of the organization. Before considering these various techniques, let us look at some of the more prominent problems and sources of error that are common to several of them.

Problems with Performance Appraisals

A number of problems can be identified that pose a threat to the value of appraisal techniques. Most of these problems deal with the related issues of the validity and reliability of the instruments or techniques themselves. Validity is the extent to which an instrument actually measures what it intends to measure, whereas reliability is the extent to which the instrument consistently yields the same results each time it is used. Ideally, a good performance appraisal system will exhibit high levels of both validity and reliability. If not, serious questions must be raised concerning the utility (and possibly the legality) of the system.

It is possible to identify several common sources of error in performance appraisal systems. These include: (1) central tendency error, (2) strictness or leniency error, (3) halo effect, (4) recency error, and (5) personal biases.

Central Tendency Error .  It has often been found that supervisors rate most of their employees within a narrow range. Regardless of how people actually perform, the rater fails to distinguish significant differences among group members and lumps everyone together in an “average” category. This is called central tendency error and is shown in  Figure 3 . In short, the central tendency error is the failure to recognize either very good or very poor performers.

Strictness or Leniency Error .  A related rating problem exists when a supervisor is overly strict or overly lenient in evaluations (see  Figure 3 ). In college classrooms, we hear of professors who are “tough graders” or, conversely, “easy A’s.” Similar situations exist in the workplace, where some supervisors see most subordinates as not measuring up to their high standards, whereas other supervisors see most subordinates as deserving of a high rating. As with central tendency error, strictness error and leniency error fail to distinguish adequately between good and bad performers and instead relegate almost everyone to the same or related categories.

Halo Effect. The halo effect exists where a supervisor assigns the same rating to each factor being evaluated for an individual. For example, an employee rated above average on quantity of performance may also be rated above average on quality of performance, interpersonal competence, attendance, and promotion readiness. In other words, the supervisor cannot effectively differentiate between relatively discrete categories and instead gives a global rating.

These types of bias are based on our perceptions of others. The halo effect occurs when managers have an overly positive view of a particular employee. This can impact the objectivity of reviews, with managers consistently giving an employee high ratings and failing to recognize areas for improvement.

Whether positive or negative, we also have a natural tendency to confirm our preconceived beliefs about people in the way we interpret or recall performance, which is known as confirmatory bias.

For example, a manager may have a preconception that her male report is more assertive. This could cause her to recall instances more easily in which her report asserted his position during a meeting. On the other hand, she may perceive her female report to be less assertive, predisposing her to forget when the report suggested an effective strategy or was successful in a tough negotiation.

The halo effect is often a consequence of people having a similarity bias for certain types of people. We naturally tend to favor and trust people who are similar to us. Whether it’s people who also have a penchant for golf or people who remind us of a younger version of ourselves, favoritism that results from a similarity bias can give certain employees an unfair advantage over others. This can impact a team to the point that those employees may receive more coaching, better reviews and, as a result, more opportunities for advancement.

Recency Error.  Oftentimes evaluators focus on an employee’s most recent behavior in the evaluation process. This is known as the recency error. That is, in an annual evaluation, a supervisor may give undue emphasis to performance during the past months—or even weeks—and ignore performance levels prior to this. This practice, if known to employees, leads to a situation where employees may “float” for the initial months of the evaluation period and then overexert themselves in the last few months or weeks prior to evaluation. This practice leads to uneven performance and contributes to the attitude of “playing the game.”

Personal Biases .  Finally, it is not uncommon to find situations in which supervisors allow their own personal biases to influence their appraisals. Such biases include like or dislike for someone, as well as racial and sexual biases. Personal biases can interfere with the fairness and accuracy of an evaluation and are illegal in many situations.

Reducing Errors in Performance Appraisals

A number of suggestions have been advanced recently to minimize the effects of various biases and errors on the performance appraisal process. 4  When errors are reduced, more accurate information is available for personnel decisions and personal development. These methods for reducing error include

• ensuring that each dimension or factor on a performance appraisal form represents a single job activity instead of a group of job activities.
• avoiding terms such as average, because different evaluators define the term differently.
• ensuring that raters observe subordinates on a regular basis throughout the evaluation period. It is even helpful if the rater takes notes for future reference.
• keeping the number of persons evaluated by one rater to a reasonable number. When one person must evaluate many subordinates, it becomes difficult to discriminate. Rating fatigue increases with the number of people rated.
• ensuring that the dimensions used are clearly stated, meaningful, and relevant to good job performance.
• training raters so they can recognize various sources of error and understand the rationale underlying the evaluation process.

Using mechanisms like these, better employee ratings that can have greater meaning both for the individual employee and the organization will result.

Techniques of Performance Appraisal

Organizations use numerous methods to evaluate personnel. We will summarize several popular techniques. Although countless variations on these themes can be found, the basic methods presented provide a good summary of the commonly available techniques. Following this review, we will consider the various strengths and weaknesses of each technique. Six techniques are reviewed here: (1) graphic rating scales, (2) critical incident technique , (3) behaviorally anchored rating scales (BARS) , (4) behavioral observation scales , and (5) management by objectives .

Graphic Rating Scales

Certainly, the most popular method of evaluation used in organizations today is the  graphic rating scale . One study found that 57 percent of the organizations surveyed used rating scales, and another study found the figure to be 65 percent. Although this method appears in many formats, the supervisor or rater is typically presented with a printed or online form that contains both the employee’s name and several evaluation dimensions (quantity of work, quality of work, knowledge of job, attendance). The rater is then asked to rate the employee by assigning a number or rating on each of the dimensions. An example of a graphic rating scale is shown in  Table 1 .

Table 1 (Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)

By using this method, if we assume that evaluator biases can be minimized, it is possible to compare employees objectively. It is also possible to examine the relative strengths and weaknesses of a single employee by comparing scores on the various dimensions.

However, one of the most serious drawbacks of this technique is its openness to central tendency, strictness, and leniency errors. It is possible to rate almost everyone in the middle of the scale or, conversely, at one end of the scale. In order to control for this, some companies have assigned required percentage distributions to the various scale points. Supervisors may be allowed to rate only 10 percent of their people outstanding and are required to rate 10 percent unsatisfactory, perhaps assigning 20 percent, 40 percent, and 20 percent to the remaining middle categories. By doing this, a distribution is forced within each department. However, this procedure may penalize a group of truly outstanding performers or reward a group of poor ones.

Critical Incident Technique

With the  critical incident technique  of performance appraisal, supervisors record incidents, or examples, of each subordinate’s behavior that led to either unusual success or unusual failure on some aspect of the job. These incidents are recorded in a daily or weekly log under predesignated categories (planning, decision-making, interpersonal relations, report writing). The final performance rating consists of a series of descriptive paragraphs or notes about various aspects of an employee’s performance (see  Table 2 ).

• shows exceptional knowledge in methods, materials, and techniques; applies in a resourceful and practical manner
• stays abreast of development(s) in field and applies to job
• “keeps up” on latest material in her special field
• participates in professional or technical organizations pertinent to her activities
• gives logical, clear-cut, understandable instructions on complex problems
• uses clear and direct language in written and oral reporting
• organizes presentations in logical order and in order of importance
• provides supervisor and subordinates with pertinent and adequate information
• tailors communications approach to group or individual
• keeps informed on how subordinates think and feel about things
• develops enthusiasm in others that gets the job done
• has respect and confidence of others
• recognizes and credits skills of others
• coordinates well with other involved groups to get the job done

Table 2 (Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)

The critical incident method provides useful information for appraisal interviews, and managers and subordinates can discuss specific incidents. Good qualitative information is generated. However, because little quantitative data emerge, it is difficult to use this technique for promotion or salary decisions. The qualitative output here has led some companies to combine the critical incident technique with one of the quantitative techniques, such as the rating scale, to provide different kinds of feedback to the employees.

Behaviorally Anchored Rating Scales

An appraisal system that has received increasing attention in recent years is the  behaviorally anchored rating scale (BARS) . This system requires considerable work prior to evaluation but, if the work is carefully done, can lead to highly accurate ratings with high inter-rater reliability. Specifically, the BARS technique begins by selecting a job that can be described in observable behaviors. Managers and personnel specialists then identify these behaviors as they relate to superior or inferior performance.

An example of this is shown in  Figure 4 , where the BARS technique has been applied to the job of college professor. As shown, as one moves from extremely poor performance to extremely good performance, the performance descriptions, or behavioral anchors, increase. Oftentimes, six to ten scales are used to describe performance on the job. Figure 4  evaluates the professor’s organizational skills. Other scales could relate to the professor’s teaching effectiveness, knowledge of the material, availability to students, and fairness in grading. Once these scales are determined, the evaluator has only to check the category that describes what she observes on the job, and the employee’s rating is simultaneously determined. The BARS technique has several purported advantages. In particular, many of the sources of error discussed earlier (central tendency, leniency, halo) should be significantly reduced because raters are considering verbal descriptions of specific behaviors instead of general categories of behaviors, such as those used in graphic rating scales. In addition, the technique focuses on job-related behaviors and ignores less relevant issues such as the subordinate’s personality, race, or gender. This technique should also lead to employees being less defensive during performance appraisals, because the focus of the discussion would be actual measured behaviors, not the person. Finally, BARS can aid in employee training and development by identifying those domains needing most attention.

On the negative side, as noted above, considerable time and effort in designing the forms are required before the actual rating. Because a separate BARS is required for each distinct job, it is only cost-efficient for common jobs. Finally, because the technique relies on observable behaviors, it may have little applicability for such jobs in such areas as research science (and sometimes management), where much of the work is mental and relevant observable behaviors are difficult to obtain.

Behavioral Observation Scales

The  behavioral observation scale (BOS) is similar to BARS in that both focus on identifying observable behaviors as they relate to performance. It is, however, less demanding of the evaluator. Typically, the evaluator is asked to rate each behavior on a scale from 1 to 5 to indicate the frequency with which the employee exhibits the behavior. Evaluation of an employee’s performance on a particular dimension is derived by summing the frequency ratings for the behaviors in each dimension.

For example, in  Table 3  we can see an example of a form to evaluate a manager’s ability to overcome resistance to change. The rater simply has to circle the appropriate numbers describing observed behaviors and get a summary rating by adding the results. The BOS technique is easier to construct than the BARS and makes the evaluator’s job somewhat simpler. Even so, this is a relatively new technique that is only now receiving some support in industry.

Table 3 (Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)

Management by Objectives

A popular technique for evaluating employees who are involved in jobs that have clear quantitative output is  management by objectives (MBO) . Although the concept of MBO encompasses much more than just the appraisal process (incorporating an organization-wide motivation, performance, and control system), we will focus here on its narrower application to evaluating employee performance. MBO is closely related to the goal-setting theory of motivation.

Under MBO, individual employees work with their supervisor to establish goals and objectives for which they will be responsible during the coming year. These goals are stated in clear language and relate to tasks that are within the domain of the employee. An example of these goals for a sales representative is shown in  Table 4 . Following a specified period of time, the employee’s performance is compared to the preset goals to determine the extent to which the goals have been met or exceeded.

Table 4 (Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)

Several advantages of MBO have been observed. These include the ability to do better planning; improved motivation, because of knowledge of results; fairer evaluations, done on the basis of results rather than personality; improved commitment through participation; and improved supervisory skills in such areas as listening, counseling, and evaluating. On the negative side, however, MBO has been criticized because it emphasizes quantitative goals at the expense of qualitative goals and often creates too much paperwork. It is difficult to compare performance levels among employees because most are responsible for different goals. Sometimes the implementation of MBO goals are autocratic and therefore ineffective or even counterproductive. As discussed in the study of motivation, goals must be accepted to be effective. Finally, in order to be successful, MBO implementation must have constant attention and support from top management; MBO does not run itself. In the absence of this support, the technique loses legitimacy and often falls into disrepair.

ETHICS IN PRACTICE

Tesla’s performance review.

 At Tesla, the automotive giant, the standards are set extremely high for their employees. In 2017, Tesla conducted its annual performance reviews as it does each year. Due to the review process, the company sees both voluntary and involuntary departures. During the review process, the managers discuss “results that were achieved, as well as how those results were achieved” with their employees. Tesla also has a performance recognition and compensation program that includes equity rewards as well as promotions in some cases, along with the constructive feedback.

The departure of employees during the review period is not unique to Tesla; however, in 2017 there was a large exodus of approximately 700 employees following their employee reviews. Elon Musk, who recently has stepped down from the role of chairman and has been under scrutiny for his behavior, saw the media coverage of this news as “ridiculous.”

“You have two boxes of equal ability, and one’s much smaller, the big guy’s going to crush the little guy, obviously,” states Musk. “So, the little guy better have a heck of a lot more skill or he’s going to get clobbered. So that is why our standards are high . . . if they’re not high, we will die.”

Overall, approximately 17 percent of their employees were promoted, almost half in manufacturing. As Tesla continues to grow and develop new vehicles, it is consistently pushing the boundaries and pushing its employees to new limits. Performance reviews are of the highest importance for Tesla’s business to succeed; the company needs the best people with the best skills. It is constantly growing and attempting to “suck the labor pool dry” to fill positions at many of its locations and factories.

Comparison of Appraisal Techniques

It is important to consider which appraisal technique or set of techniques may be most appropriate for a given situation. Although there is no simple answer to this question, we can consider the various strengths and weaknesses of each technique. This is done in  Table 6 . It is important to keep in mind that the appropriateness of a particular appraisal technique is in part a function of the purpose for the appraisal. For example, if the purpose of the appraisal is to identify high potential executives, then assessment centers are more appropriate than rating scales.

Table 6 (Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)

As would be expected, the easiest and least expensive techniques are also the least accurate. They are also the least useful for purposes of personnel decisions and employee development. Once again, it appears that managers and organizations get what they pay for. If performance appraisals represent an important aspect of organizational life, clearly the more sophisticated—and more time-consuming—techniques are preferable. If, on the other hand, it is necessary to evaluate employees quickly and with few resources, techniques such as the graphic rating scale may be more appropriate. Managers must make cost-benefit decisions about the price (in time and money) they are willing to pay for a quality performance appraisal system.

As previously noted, feedback represents a critical variable in determining the success or failure of the goal-setting process. The same applies to the performance appraisal process. Without effective knowledge of results, the motivational impact of the appraisal process is lost. To better understand how feedback in work settings affects employee behavior, consider the model shown in  Figure 5 .

Feedback comes from many sources, including the task at hand, the supervisor, coworkers, and oneself. This input is then cognitively evaluated by the employee, who considers such factors as the perceived accuracy of the feedback (e.g., does the employee consider the information to be correct?); the credibility of the source of the feedback (e.g., does the employee trust the supervisor’s opinion?); the employee’s opinion concerning the fairness of the evaluation-process; the extent to which the feedback met the employee’s expectations (e.g., does the employee think she could have done better?); and the reasonableness of the performance standards.

If one or more of these evaluations prove negative (for example, the employee believes she is being unfairly evaluated), the credibility of the feedback is dismissed, and the employee may increase her resistance to task effort. On the other hand, where the feedback is accepted, it reinforces the employee’s direction, effort on the task, and persistence on the task. Thus, although feedback is essential, it is the nature and quality of the feedback that ultimately determines employee response.

Reward Systems in Organizations

After a company has designed and implemented a systematic performance appraisal system and provided adequate feedback to employees, the next step is to consider how to tie available corporate rewards to the outcomes of the appraisal. Behavioral research consistently demonstrates that performance levels are highest when rewards are contingent upon performance. Thus, in this section, we will examine five aspects of reward systems in organizations: (1) functions served by reward systems, (2) bases for reward distribution, (3) intrinsic versus extrinsic rewards, (4) the relationship between money and motivation and, finally, (5) pay secrecy.

Functions of Reward Systems

Reward systems in organizations are used for a variety of reasons. It is generally agreed that reward systems influence the following:

• Job effort and performance.  Following expectancy theory, employees’ effort and performance would be expected to increase when they felt that rewards were contingent upon good performance. Hence, reward systems serve a very basic motivational function.
• Attendance and retention.  Reward systems have also been shown to influence an employee’s decision to come to work or to remain with the organization. This was discussed in the previous chapter.
• Employee commitment to the organization.  It has been found that reward systems in no small way influence employee commitment to the organization, primarily through the exchange process. That is, employees develop ties with organizations when they perceive that the organization is interested in their welfare and willing to protect their interests. This exchange process is shown in Figure 6 To the extent that employee needs and goals are met by the company, we would expect commitment to increase.
• Job satisfaction. Job satisfaction has also been shown to be related to rewards, as discussed in the previous chapter. Edward E. Lawler, a well-known researcher on employee compensation, has identified four conclusions concerning the relationship between rewards and satisfaction: (1) satisfaction with a reward is a function of both how much is received and how much the individual feels should have been received; (2) satisfaction is influenced by comparisons with what happens to others, especially one’s coworkers; (3) people differ with respect to the rewards they value; and (4) some rewards are satisfying because they lead to other rewards.
• Occupational and organizational choice.  Finally, the selection of an occupation by an individual, as well as the decision to join a particular organization within that occupation, are influenced by the rewards that are thought to be available in the occupation or organization. To prove this, simply look at the classified section of your local newspaper and notice how many jobs highlight beginning salaries.

Reward systems in organizations have far-reaching consequences for both individual satisfaction and organizational effectiveness. Unfortunately, there are many instances where reward systems have been distorted to punish good performance or inhibit creativity. Consider, for example, the Greyhound Bus Company driver who was suspended for 10 days without pay for breaking a company rule against using a CB radio on his bus. The bus driver had used the radio to alert police that his bus, with 32 passengers on board, was being hijacked by an armed man. The police arrested the hijacker, and the bus driver was suspended for breaking company rules. Such incidents hardly encourage employees to focus their efforts on responsible performance.

Bases for Reward Distribution

A common reality in many contemporary work organizations is the inequity that exists in the distribution of available rewards. One often sees little correlation between those who perform well and those who receive the greatest rewards. At the extreme, it is hard to understand how a company could pay its president $10 to $20 million per year (as many large corporations do) while it pays its secretaries and clerks less than $20,000. Each works approximately 40 hours per week, and both are important for organizational performance. Is it really possible that the president is 1,000 times more important than the secretary, as the salary differential suggests?

How do organizations decide on the distribution of available rewards? These are questions of justice in organizations. Justice or fairness refers refers to the idea that an action or decision is morally right, which may be defined according to ethics, religion, fairness, equity, or law. People are naturally attentive to the justice of events and situations in their everyday lives, across a variety of contexts. There are three basic forms of organizational justice: distributive, procedural, and interactional. Distributive justice  is conceptualized as the fairness associated with decision outcomes and distribution of resources. The outcomes or resources distributed may be tangible ( e.g. , pay) or intangible ( e.g. , praise). Perceptions of distributive justice can be fostered when outcomes are perceived to be equally applied. Distributive justice may involve one or more of three different rationales for how resources are distributed: equity, equality and need. Equity focuses more on rewarding employees based on their contribution, and thus can be can be viewed as capitalist justice: the ratio of one’s inputs to one’s outcomes. Equality on the other hand provides each employee with the same compensation. Finally, need is providing a benefit based on one’s personal requirement. Procedural justice is defined as the fairness of the processes that lead to outcomes. When individuals feel that they have a voice in the process or that the process involves characteristics such as consistency, accuracy, ethicality, and lack of bias then procedural justice is enhanced. Procedural justice is the appropriateness of the allocation process. It includes six main points which are consistency, lack of bias, accuracy, representation of all concerned, correction and ethics. Procedural justice seems to be essential to maintaining institutional legitimacy. What is more interesting is that procedural justice affects what workers believe about the organization as a whole. Interactional justice  refers to the treatment that an individual receives as decisions are made and can be promoted by providing explanations for decisions and delivering the news with sensitivity and respect. Interactional justice focuses on who gets attention and when. It includes interpersonal relationships and access to information. All three forms of justice are perceptual, that is they are tied to what people think and feel is happening around them. Thus, justice is one important tool leaders have to motivate the members of their groups.

Extrinsic and Intrinsic Rewards

The variety of rewards that employees can receive in exchange for their contributions of time and effort can be classified as either extrinsic or intrinsic rewards.  Extrinsic rewards  are external to the work itself. They are administered externally—that is, by someone else (usually management). Examples of extrinsic rewards include wages and salary, fringe benefits, promotions, and recognition and praise from others.

On the other hand, intrinsic rewards  represent those rewards that are related directly to performing the job. In this sense, they are often described as “self-administered” rewards, because engaging in the task itself leads to their receipt. Examples of intrinsic rewards include feelings of task accomplishment, autonomy, and personal growth and development that come from the job.

In the literature on employee motivation, there is considerable controversy concerning the possible interrelationship of these two kinds of reward. It has been argued (with some research support) that extrinsic rewards tend to drive out the positive effects of some intrinsic rewards and can lead to unethical behavior. Consider, for example, the child next door who begs you to let her help you wash your car. For a young child, this task can carry considerable excitement (and intrinsic motivation). Now, consider what happens on a Saturday afternoon when you need your car washed but the child has other options. What do you do? You offer to pay her this time to help wash your car. What do you think will happen the next time you ask the neighbor to help you wash the car for free? In other words, when extrinsic rewards such as pay are tied closely to performance (called performance-reward contingency), intrinsic motivation—the desire to do a task because you enjoy it—can decrease.

Also, it is important to keep in mind that because extrinsic rewards are administered by sources external to the individual, their effectiveness rests on accurate and fair monitoring, evaluating, and administration. Implementation can be expensive, and the timing of performance and rewards may not always be close. For example, you may perform well on a task, but unless there is a way for that to be noticed, evaluated, recorded, and rewarded within a reasonable time frame, an extrinsic reward may not have a significant impact. Intrinsic rewards are a function of self-monitoring, evaluation, and administration; consequently, these rewards often are less costly and more effectively administered. For example, even if no one else notices or rewards you for superior performance on a task, you can still reward yourself with a mental pat on the back for a job well done or a sense of satisfaction for overcoming a challenge. The implications of this finding will become apparent when exploring efforts to enrich employees’ jobs.

Money and Motivation: A Closer Look

A recurring debate among managers focuses on the issue of whether money is a primary motivator. Some argue that most behavior in organizational settings is motivated by money (or at least monetary factors), whereas others argue that money is only one of many factors that motivate performance. Whichever group is correct, we must recognize that money can have important motivational consequences for many people in many situations. In fact, money serves several important functions in work settings. These include serving as (1) a goal or incentive, (2) a source of satisfaction, (3) an instrument for gaining other desired outcomes, (4) a standard of comparison for determining relative standing or worth, and (5) a conditional reinforcer where its receipt is contingent upon a certain level of performance. Even so, experience tells us that the effectiveness of pay as a motivator varies considerably. Sometimes there seems to be an almost direct relationship between pay and effort, whereas at other times no such relationship is found. Why? Lawler suggests that certain conditions must be present in order for pay to act as a strong motivator:

• Trust levels between managers and subordinates must be high.
• Individual performance must be able to be accurately measured.
• Pay rewards to high performers must be substantially higher than those to poor performers.
• Few, if any, negative consequences for good performance must be perceived.

Under these conditions, a climate or culture is created in which employees have reason to believe that significant performance-reward contingencies truly exist. Given this perception (and assuming the reward is valued), we would expect performance to be increased.

Individual and Group Incentive Plans

We now turn to an examination of various employee incentive programs used by organizations. First, we consider the relative merits of individuals versus group incentive programs. Next, we focus on several relatively new approaches to motivation and compensation. Finally, we suggest several guidelines for effective incentive systems.

Individual versus Group Incentives

Companies usually have choices among various compensation plans and must make decisions about which is most effective for its situation. Incentive systems in organizations are usually divided into two categories on the basis of whether the unit of analysis—and the recipient of the reward—is the individual or a group. Among individual incentive plans, several approaches can be identified, including merit-based compensation (commonly known as merit compensation), piece-rate incentive programs (where people are paid according to the quantity of output), bonus systems of various sorts, and commissions. In each case, rewards are tied fairly directly to the performance level of the individual.

Although individual incentive systems often lead to improved performance, some reservations have been noted. In particular, these programs may at times lead to employees competing with one another, with undesirable results. For instance, department store salespeople on commission may fight over customers, thereby chasing the customers away. After all, customers don’t care who they deal with, only that the service is good. Second, these plans typically are resisted by unions, which prefer compensation to be based on seniority or job classification. Third, where quality control systems are lax, individual incentives such as piece rates may lead employees to maximize units of output while sacrificing quality. And, finally, in order for these programs to be successful, an atmosphere of trust and cooperation is necessary.

In order to overcome some of these shortcomings, many companies have turned to group or organizational incentive plans. Group incentive programs base at least some of an employee’s rewards on group or organization performance. Hence, employees are encouraged to cooperate with one another and with the corporation so that all employees can benefit. Programs such as profit-sharing or gain-sharing plans (discussed below) are designed to tie the employees’ future rewards and prosperity to that of the company and reduce the age-old antagonism between the two. The results are often dramatic.

Chapter Review Questions

• Identify the various functions of performance appraisals. How are appraisals used in most work organizations?
• What are some problems associated with performance appraisals?
• Define validity and reliability. Why are these two concepts important from a managerial standpoint?
• How can errors in appraisals be reduced?
• Critically evaluate the advantages and disadvantages of the various techniques of performance appraisal.
• Discuss the role of feedback in employee performance.
• What is the difference between intrinsic and extrinsic rewards?
• Identify the major bases of reward distribution.
• How does money influence employee motivation?
• Discuss the relative merits of individual and group incentive programs.
• Describe the benefits and drawbacks of several of the new approaches to reward systems. Which ones do you feel would be most effective in work organizations?

C. Solbach. “Feedback through cultural looking glass.” Krauthammer, September 16, 2015, https://www.krauthammer.com/en/publications/personal-development/2017/04/12/12/07/feedback-through-cultural-looking-glass; M. Abadi. “The exact same sentence from your boss can mean ‘yes,’ ‘no,’ or ‘maybe’ depending on the country where you work.” Business Insider, December 7, 2017, https://www.businessinsider.com/direct-feedback-work-depends-on-culture-2017-12; J. Windust. “An International Approach to 360-Degree Feedback.” Cognology, July 26, 2016, https://www.cognology.com.au/international-approach-360-degree-feedback/; “Giving Employee Feedback To A Culturally Diverse Workforce.” Impraise Blog, accessed January 26, 2019, https://blog.impraise.com/360-feedback/how-to-handle-cultural-differences-between-branchescountries-in-feedback-behavior-performance-review. K. Korosec. “Tesla Fires Hundreds of Workers After Their Annual Performance Review.” Fortune, October 14, 2017, http://fortune.com/2017/10/13/tesla-fires-employees/; D. Muoio. “Tesla fired 700 employees after performance reviews in the third quarter.” Business Insider, November 1, 2017, https://www.businessinsider.com/tesla-fired-700-employees-performance-reviews-2017-11; J. Wattles. “Elon Musk agrees to pay $20 million and quit as Tesla chairman in deal with SEC.” Money, September 30, 2018, https://money.cnn.com/2018/09/29/technology/business/elon-musk-tesla-sec-settlement/index.html.

S. Johnson, “Tips on Evaluating your Boss,” Chron, July 1, 2018, https://work.chron.com/tips-evaluating-boss-7179.html.

C. J. Fombrum and R. L. Laud, “Strategic Issues in Performance Appraisal Theory and Practice,” Personnel, 601 (6), pp. 23–31.

S. Maier, “5 unconscious factors impacting your performance appraisals,” The Business Journals, January 25, 2019, https://www.bizjournals.com/bizjournals/how-to/human-resources/2019/01/5-unconscious-factors-impacting-your-performance.html.

R. L. Mathis, J. H. Jackson, and S. R. Valentine, Human Resource Management, 14th ed. (Stamford, CT: Cengage Learning, 2014), p. 357.

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L. Slavenski, “Matching People to Jobs,” Training and Development Journal, August 1986, pp. 54–57.

F. D. Frank, D. W. Bracken, and M. R. Smith, “Beyond Assessment Centers,” Training and Development Journal, March 1988, pp. 65–67.

M. S. Taylor, C. D. Fisher, and D. R. Ilgen, “Individuals’ Reactions to Performance Feedback in Organizations: A Control Theory Perspective,” in K. M. Rowland and G. R. Ferris, eds., Research in Personnel and Human Resources Management, Vol. 2, (Greenwich, CT: JAI Press, 1984), pp. 81–124.

R. T. Mowday, L. W. Porter, and R. M. Steers, Employee-Organization Linkages: The Psychology of Employee Commitment, Absenteeism, and Turnover, (New York: Academic Press, 1982).

E. E. Lawler, “New Approaches to Pay Administration,” Personnel Vol. 5, 1976, pp. 11–23.

Cited in Eugene Register-Guard, July 15, 1980, p. B1.

Stephen J. Sauer, Matthew S. Rodgers, William J. Becker, “The Effects of Goals and Pay Structure on Managerial Reporting Dishonesty,” Journal of Accounting, Ethics & Public Policy, 2018.

R. L. Opsahl and M. D. Dunnette, “The Role of Financial Compensation in Industrial Motivation,” Psychological Bulletin Vol. 66, 1966, pp. 94–96.

E. E. Lawler, Rewarding Excellence, (San Francisco: Jossey Bass, 2001).

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Lawler, Rewarding Excellence, op. cit.

M. Wallace, cited in N. Perry, “Here Come Richer, Riskier Pay Plans,” Fortune, December 19, 1988, pp. 50–58.

E. E. Lawler, “The Design of Effective Reward Systems,” Technical Report, University of Southern California, April 1983.

a process through which feedback from an employee's subordinates, colleagues, and supervisor(s), as well as a self-evaluation by the employee themselves is gathered.

A system that provides a means of systematically evaluating employees across various performance dimensions to ensure that organizations are getting what they pay for.

The failure to recognize either very good or very poor performers and provide indistinguishable ratings across all employees (i.e., all employees receive moderate ratings).

Errors in rating whereby an evaluator either provides uniformly low (strictness) or uniformly high (leniency) ratings of employees.

A supervisor assigning the same rating to each factor or category being evaluated for an individual.

Occurs when, in an evaluation, a supervisor may give undue emphasis to performance during the past months—or even weeks—and ignore performance levels prior to this.

Biases including liking or disliking for someone, as well as racial and sexual biases. Personal biases can interfere with the fairness and accuracy of an evaluation and are illegal in many situations.

A performance appraisal technique where the supervisor or rater is typically presented with a printed or online form that contains both the employee’s name and several evaluation dimensions (quantity of work, quality of work, knowledge of job, attendance). The rater is then asked to rate the employee by assigning a number or rating on each of the dimensions.

Critical incident technique- A technique where supervisors record incidents, or examples, of each subordinate’s behavior that led to either unusual success or unusual failure on some aspect of the job.

A system that requires considerable work prior to evaluation but, if the work is carefully done, can lead to highly accurate ratings with high inter-rater reliability.

Identifies observable behaviors as they relate to performance and is less demanding of the evaluator.

Closely related to the goal-setting theory of motivation.

the idea that an action or decision is morally right, which may be defined according to ethics, religion, fairness, equity, or law.

the fairness associated with decision outcomes and distribution of resources.

fairness of the processes that lead to outcomes.

refers to the treatment that an individual receives as decisions are made

Rewards external to the work itself (e.g., wages, salary, benefits, titles, recognition).

rewards that are related directly to performing the job (e.g., autonomy, growth, feelings of accomplishment, etc.)

Problem Solving in Teams and Groups Copyright © 2021 by Cameron W. Piercy, Ph.D. is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Performance evaluation template, with examples and tips

A performance evaluation is a formal check-in process used to evaluate team members progress. Though evaluations can be stressful, a performance evaluation template can help standardize the process. When your team member knows exactly what you’ll be discussing, they’re able to prepare and have a more productive conversation. Plus, if you pair evaluations with goal-setting, you can focus the conversation not just on current impact but also on future goals. In this article, learn how a performance evaluation template can simplify and improve the feedback process.

Performance evaluations can bring up memories of when you were a new team member in the hot seat. The anticipation before each 1:1 meeting was likely stressful if you didn't know what the format would look like or what you'd talk about. But now that you’re a manager, you can see things from a different perspective and create a more positive experience. 

What is a performance evaluation?

A performance evaluation is a formal check-in process used to evaluate team members based on their past work and to give feedback for future success. Sometimes called a performance review, performance evaluations usually occur in quarterly, bi-annual, or annual cycles. 

During a performance evaluation, you’ll review each team member's overall performance and break down the competencies they aim to master. You and your employee will walk through specific examples of things your team member did well and areas where they have room for improvement. Some companies use virtual performance evaluation software, but you can also go through the process without using a dedicated HR management tool.

Performance evaluations as self-assessments

Performance evaluations are an opportunity for growth. They’re a chance to have a conversation about each team member’s impact and how they can move forward in their role. 

Oftentimes, performance evaluation templates will have a self-assessment component. This gives your team member a chance to drive their own career by sharing their successes and future goals. You can then start the performance evaluation conversation by asking them to share what they think they're doing well and the areas in which they think they need improvement. This can make the evaluation feel less scrutinizing and more like a dialogue.

How do you write a performance evaluation?

A performance evaluation template can help you prepare for the evaluation process by giving you a standardized format to follow. Though you should tailor this template to your team's goals, make sure your team members see the template in advance so they know what the conversation will be about. This allows them to prepare and encourages conversation on how to move forward. A collaborative approach will feel less daunting than a traditional, one-sided performance evaluation form.

1. Identify core competencies

Although you want your performance evaluation template to meet the needs of your team members, it’s also important to standardize your template to provide a fair assessment across the board. This means considering what competencies make the most sense for your entire department. 

Core competencies that can measure performance in various team roles include:

Knowledge of job skills

Quality/quantity of work

Customer service skills

Inclusiveness

In addition to these categories, you can include an area in the evaluation form for specific goal-setting and further discussion. This will allow you to get more personal with each team member when you meet with them individually. 

Tip: You can add sub-competencies below each category to make your performance evaluation more detailed. For example, under the “quality/quantity of work” competency, add things like: looks for ways to improve quality; performs a full range of duties; achieves goals; and meets deadlines. 

2. Choose a rating scale

Once you’ve chosen the competencies for your performance evaluation template, choose how you want to rate your team members. There are two main values of a rating scale:

Provides a shared language to discuss successes and strengths versus areas of opportunity.

Provides something to look back to and see team members career growth.

However, avoid a numerical scale if possible. That way, team members focus less on their “grade” and more on their competencies. The key to your rating scale is to make sure it’s clear to everyone.

Rating scale example:

Exceeds expectations

Often exceeds expectations

Consistently meets expectations

Needs development

Make sure you align your team with what the rating scale means. For example, two people might mentally define "consistently meets expectations" differently, so keeping everyone on the same page can set the stage for a healthy and productive evaluation conversation.

3. Set an evaluation cycle

Setting your evaluation cycle will let you and your team members know how much time you have to prepare between sessions. Common review cycles are quarterly, bi-annually, and annually, and your company may pre-determine these. But if you have a choice, you may choose based on the nature of your workplace. For example, if your work culture is hands-off, you can hold monthly performance evaluations to ensure team members get frequent feedback. If your work culture is highly collaborative, your team may not need frequent reviews.  

Some review periods are better for short-term goals while others focus on long-term goals . For example, quarterly review periods provide enough time between evaluations for your team members to take past feedback into consideration and work on any goals you’ve set together. Once you’ve set your evaluation cycle, it’s important to stick to it so everyone knows what to expect moving forward. 

Tip: You can also take advantage of the time you have between evaluation cycles to observe job performance in action and offer opportunities for professional development . Helping your team members meet their performance goals benefits the entire team.

4. Prepare a list of questions

Now that you’ve nailed down the basics of your performance evaluation template, you can prepare for the individual meetings you’ll have with your team members. In these meetings, you’ll want to have a list of questions to ask that can move the conversation forward. Some questions you can ask include:

What is something from this quarter that you’re proud of?

Which goals did you meet? Which goals fell short?

What are two or three things you can focus on next quarter to help you grow professionally?

To ease the pressure of the evaluation meeting, standardize these questions for all team members.

Tip: Make sure you choose questions that get team members thinking about their work progress and goals. While the rating system on the performance evaluation is useful for long-term comparisons, the conversation is where your team members can verbalize issues and feel good about their accomplishments.

5. Share questions in advance

The best thing you can do to prepare team members for a performance evaluation meeting is to let them know up front that it's happening and exactly what they can expect. Sharing the questions you’ve prepared in advance can give everyone time to think about them and process them. This reduces nerves and makes it a more collaborative and constructive conversation.

You can also share the format of the review with them so they can get an idea of how the conversation will go. For example, will you expect them to share first or will you lead?

Tip: Aside from sharing the questions with your team members, you can let them know what to expect by asking them about their accomplishments during the interim between evaluation cycles.

6. Have the conversation

Set aside dedicated time outside of your traditional meetings to have your performance evaluation meetings. Plan to meet individually with each team member for between 30 and 45 minutes. If possible, give your team members about a week’s notice so they can plan for them.

Tip: Don’t forget to ask team members for their opinions during the conversation. Aside from the standard questions about past performance and future goals, ask for feedback about your management style or the company culture . You can also ask where or if they hope to grow in the company over the long term.

7. Create a goal-setting framework

The questions you ask team members during evaluations should flow into goal-setting sessions. When you end the performance review process with a set goal, team members have a clear idea of what they need to work on between evaluations. Two goal-setting options include SMART goals and OKRs :

SMART goals:

Objective 1

Key result 1

Key result 2

Key result 3

After you give team members a framework to follow, let them be the visionaries of their goals while you facilitate. 

Tip: When you take a backseat in the goal-setting process, your team members will feel more in control of their future growth. It can also make evaluations more enjoyable because they become less bureaucratic. 

8. Be open to feedback

You should always ask team members about your performance as a manager so you can continue to meet their needs. Sometimes, team members won’t feel comfortable providing honest feedback in a 1:1 meeting. So if you want genuine responses, consider asking for feedback anonymously. You can:

Send an anonymous survey

Set up a physical or virtual comment box 

Hold a team feedback meeting

Emphasize that you’re open to any feedback your team members have for you, whether it’s positive or constructive. You can use their feedback to become a better manager and improve your future performance evaluations. 

Tip: If you’re having trouble thinking of ways to get team feedback, ask your co-workers what methods they use. Other managers may have strategies to share and ideas for evaluation templates as well. If you see areas that overlap between your departments, you can borrow ideas for your performance review form.

Performance evaluation template and example

Below, you’ll see a filled-out example of what a performance evaluation template may look like. You can offer this template as a self-assessment for team members, which should spark meaningful discussion about their work progress and future goals. 

You can download a blank version of this performance evaluation template below to customize it for your company and department.

You can download a blank version of this performance evaluation template below to customize for your company and department.

Types of employee performance review templates

The process of conducting employee performance reviews is pivotal for both employee growth and the continuous improvement of your organization. By using a variety of employee performance evaluation templates, you can ensure that these assessments are both comprehensive and effective.

Below, we'll explore different types of employee performance evaluations that help human resources departments offer constructive feedback, improve team performance, and increase employee engagement.

Simple performance review template

A simple performance review is an essential tool for any human resources professional or team leader. It's designed to streamline the evaluation process by focusing on key performance indicators (KPIs) and core competencies.

This template is particularly useful for routine assessments and is a great starting point for those new to performance evaluations. It simplifies how to do a performance review by providing a clear, concise framework for feedback.

Example: A sales associate, for example, might be evaluated on specific KPIs such as sales volume and customer satisfaction, providing clear metrics for assessment and discussion.

Self-evaluation form

The self-evaluation form , which encourages employees to engage in self-reflection, is an important part of the performance review process. This form allows individuals to assess their own performance, highlighting their achievements and identifying areas of improvement.

Example : A software developer could use the form to reflect on their completed projects, coding proficiency improvements, and teamwork contributions. This helps the team member identify their strengths and areas for further professional development.

By integrating self-assessments into your performance evaluation form, you can foster a culture of self-awareness and continuous development.

Peer review template

The peer review template fosters a collaborative review process in which employees can provide feedback on their coworkers' performance. Peer reviews complement traditional performance evaluation forms by adding depth to the understanding of an employee's impact within the team.

This form provides a thorough perspective that might not be apparent to supervisors alone and aids in understanding how peers perceive an employee's progress.

Example: For instance, a graphic designer might receive feedback from their peers on their creativity, ability to meet deadlines, and collaboration on team projects, offering a comprehensive view of their performance from those who work closely with them.

30-60-90 review template

Designed for new hires, the 30-60-90 review template sets clear milestones for the first 90 days of employment. It's a dynamic tool that helps managers and employees establish mutual performance expectations and goals, making new employee onboarding a success.

Example : Consider, a new marketing specialist who is expected to learn the company's marketing strategy in the first 30 days, contribute to a campaign by the 60th day, and lead a small project by day 90.

The 30-60-90 review focuses on the quality of work and alignment with the job description and incorporates a career development plan that includes mentoring. This ensures the new hire is effectively integrated into the team, with clear expectations for their initial months.

360-degree feedback template

The 360-degree feedback template is a comprehensive approach to performance evaluation, incorporating feedback from supervisors, peers, subordinates, and sometimes even clients.

This holistic view provides a well-rounded perspective on employee strengths and any areas that need improvement.

Example: Consider a team leader whose 360-degree feedback reveals a lower performance rating in communication skills compared to other areas. Based on this feedback, the leader is placed on a performance improvement plan specifically designed to enhance their communication skills. The plan includes targeted workshops, mentoring sessions with a communication coach, and regular feedback sessions to monitor progress. This approach ensures that the leader receives the support needed to develop their abilities and positively impact their team's performance.

One-on-one meetings

Performance evaluation templates can be helpful for jotting down notes during face-to-face meetings, but with many teams moving to remote work , online software is more useful than ever. Virtual one-on-one meeting agendas clarify that you're here for your team members and are always willing to chat. They're a great place for casual feedback and to build psychological safety and trust. By developing this relationship with your direct report, you can set yourself up for success when you have a bigger performance review conversation.

Even if you work in person, you can use one-on-one meeting agendas to stay connected with team members throughout the year.

A one-on-one project also gives team members the chance to choose what they want to talk about with you. Think of the one-on-one as their time. You've set 30 minutes aside for them to use in whatever way is most beneficial for them. Sometimes, they might want to talk about their favorite TV show because they need some time to unwind. Other times, you may get into some serious brainstorming or problem-solving together.

Quarterly performance review template

Focusing on short-term goals and achievements, the quarterly performance review template allows for more frequent assessments of an employee's progress. This performance appraisal is beneficial for tracking progress towards annual goals and adjusting objectives as needed. Quarterly reviews are an excellent way to keep employees motivated and aligned with the company's strategic direction.

Example : For instance, a project manager might be reviewed on their ability to meet project milestones, with adjustments made to their next quarter goals based on the latest project outcomes and feedback.

Annual performance review template

The annual performance review template provides a comprehensive overview of an employee's performance over the year. It's an opportunity to reflect on long-term achievements, set future goals, and discuss career development opportunities.

Incorporating feedback from this template into the next performance review ensures continuous improvement and effective performance management. Additionally, it sets the stage for meaningful one-on-one discussions, allowing managers and employees to follow up on progress and celebrate wins.

Example : For example, imagine an employee who has consistently met their sales targets throughout the year. The annual review not only acknowledges this achievement but also explores areas for further growth. This might involve setting higher targets for the upcoming year, discussing new responsibilities, or identifying training opportunities.

Why performance evaluations are important

Performance evaluations are important for both managers and team members because, when work gets hectic, communication can fall short. A “good job” here and there can go a long way, but team members need scheduled facetime for individual feedback in order to stay on track and grow.

Performance evaluations can provide the following benefits:

For managers:

Informs hiring practices

Offers feedback on management style

Provides updates on team member wellbeing

For team members:

Improves communication with leadership

Provides a safe space to address concerns

Offers feedback on individual performance

While performance evaluations can feel nerve-wracking, they’re also motivating and give team members clarity on how to improve. Over time, thoughtful performance evaluations build trust and show your team members that you support them and their career paths.

Enhance performance evaluations with goal-setting software

With Asana’s goal-setting software, your team can receive more frequent updates on how they’re doing, which lessens the pressure on everyone when performance evaluations roll around. 

Goal-setting enhances the performance evaluation process by focusing more on future progress. When your team can watch their progress in action, they’ll feel more invested in doing their best work.

Related resources

15 types of employee performance reviews

What is self-management? (7 skills to improve it)

Don’t like giving feedback? These 20 tips are for you

How to delegate effectively: 10 tips for managers

Critical Thinking: Performance Review Examples (Rating 1 – 5)

By Status.net Editorial Team on July 15, 2023 — 8 minutes to read

Critical thinking skills are an essential aspect of an employee’s evaluation: the ability to solve problems, analyze situations, and make informed decisions is crucial for the success of any organization.

Questions that can help you determine an employee’s rating for critical thinking:

• Does the employee consistently analyze data and information to identify patterns and trends?
• Does the employee proactively identify potential problems and develop solutions to mitigate them?
• Has the employee demonstrated the ability to think creatively and come up with innovative ideas or approaches?
• Does the employee actively seek out feedback and input from others to inform their decision-making process?
• Has the employee demonstrated the ability to make sound decisions based on available information and data?

Performance Review Phrases and Paragraphs Examples For Critical Thinking

5 – outstanding.

Employees with outstanding critical thinking skills are exceptional at identifying patterns, making connections, and using past experiences to inform their decisions.

Phrases Examples

• Consistently demonstrates exceptional critical thinking abilities
• Always finds creative and innovative solutions to complex problems
• Skilfully analyzes information and data to make well-informed decisions
• Frequently provides valuable insights and perspectives that benefit the team
• Continuously seeks out new learning opportunities to sharpen their critical thinking skills
• Demonstrates exceptional ability to identify and analyze complex issues
• Consistently develops innovative solutions to problems
• Skillfully connects disparate ideas to create coherent arguments
• Effectively communicates well-reasoned conclusions
• Exceptional ability to recognize trends in data
• Expertly applies existing knowledge to new situations
• Consistently anticipates potential challenges and develops solution

Paragraph Example 1

“Jane consistently demonstrates outstanding critical thinking skills in her role. She not only engages in deep analysis of complex information, but she also presents unique solutions to problems that have a significant positive impact on the team’s performance. Her ability to make well-informed decisions and offer valuable insights has led to numerous successes for the organization. Moreover, Jane’s dedication to improvement and learning demonstrates her commitment to personal and professional growth in the area of critical thinking.”

Paragraph Example 2

“Jessica consistently displays outstanding critical thinking skills. She is able to identify and analyze complex issues with ease and has demonstrated her ability to develop innovative solutions. Her skill in connecting disparate ideas to create coherent arguments is impressive, and she excels at communicating her well-reasoned conclusions to the team.”

Paragraph Example 3

“Melanie consistently demonstrates an exceptional ability to recognize patterns and trends in data, which has significantly contributed to the success of our projects. Her critical thinking skills allow her to apply her extensive knowledge and experience in creative and innovative ways, proactively addressing potential challenges and developing effective solutions.”

4 – Exceeds Expectations

Employees exceeding expectations in critical thinking skills are adept at analyzing information, making sound decisions, and providing thoughtful recommendations. They are also effective at adapting their knowledge to novel situations and displaying confidence in their abilities.

• Excellent analytical capabilities
• Provides well-reasoned recommendations
• Demonstrates a solid understanding of complex concepts
• Regularly demonstrates the ability to think analytically and critically
• Effectively identifies and addresses complex problems with well-thought-out solutions
• Shows exceptional skill in generating innovative ideas and solutions
• Exhibits a consistently high level of decision-making based on sound reasoning
• Proactively seeks out new information to improve critical thinking skills
• Routinely identifies potential challenges and provides solutions
• Typically recognizes and prioritizes the most relevant information
• Logical thinking is evident in daily decision-making
• Often weighs the pros and cons of multiple options before selecting a course of action

“Eric’s critical thinking skills have consistently exceeded expectations throughout his tenure at the company. He is skilled at reviewing and analyzing complex information, leading him to provide well-reasoned recommendations and insights. Eric regularly demonstrates a deep understanding of complicated concepts, which allows him to excel in his role.”

“In this evaluation period, Jane has consistently demonstrated an exceptional ability to think critically and analytically. She has repeatedly shown skill in identifying complex issues while working on projects and has provided well-thought-out and effective solutions. Her innovative ideas have contributed significantly to the success of several key initiatives. Moreover, Jane’s decision-making skills are built on sound reasoning, which has led to positive outcomes for the team and organization. Additionally, she actively seeks opportunities to acquire new information and apply it to her work, further strengthening her critical thinking capabilities.”

“John consistently exceeds expectations in his critical thinking abilities. He routinely identifies potential challenges and provides thoughtful solutions. He is skilled at recognizing and prioritizing the most relevant information to make well-informed decisions. John regularly weighs the pros and cons of various options and selects the best course of action based on logic.”

3 – Meets Expectations

Employees meeting expectations in critical thinking skills demonstrate an ability to analyze information and draw logical conclusions. They are effective at problem-solving and can make informed decisions with minimal supervision.

• Capable of processing information and making informed decisions
• Displays problem-solving skills
• Demonstrates logical thinking and reasoning
• Consistently demonstrates the ability to analyze problems and find possible solutions.
• Actively engages in group discussions and contributes valuable ideas.
• Demonstrates the ability to draw conclusions based on logical analysis of information.
• Shows willingness to consider alternative perspectives when making decisions.
• Weighs the pros and cons of a situation before reaching a decision.
• Usually identifies relevant factors when faced with complex situations
• Demonstrates an understanding of cause and effect relationships
• Generally uses sound reasoning to make decisions
• Listens to and considers different perspectives

“Sarah consistently meets expectations in her critical thinking skills, successfully processing information and making informed decisions. She has shown her ability to solve problems effectively and displays logical reasoning when approaching new challenges. Sarah continues to be a valuable team member thanks to these critical thinking skills.”

“Jane is a team member who consistently meets expectations in regards to her critical thinking skills. She demonstrates an aptitude for analyzing problems within the workplace and actively seeks out potential solutions by collaborating with her colleagues. Jane is open-minded and makes an effort to consider alternative perspectives during decision-making processes. She carefully weighs the pros and cons of the situations she encounters, which helps her make informed choices that align with the company’s objectives.”

“David meets expectations in his critical thinking skills. He can usually identify the relevant factors when dealing with complex situations and demonstrates an understanding of cause and effect relationships. David’s decision-making is generally based on sound reasoning, and he listens to and considers different perspectives before reaching a conclusion.”

2 – Needs Improvement

Employees in need of improvement in critical thinking skills may struggle with processing information and making logical conclusions. They may require additional guidance when making decisions or solving problems.

• Struggles with analyzing complex information
• Requires guidance when working through challenges
• Difficulty applying past experiences to new situations
• With some guidance, Jane is able to think critically, but she struggles to do so independently.
• John tends to jump to conclusions without analyzing a situation fully.
• Sarah’s problem-solving skills need improvement, as she often overlooks important information when making decisions.
• David’s critical thinking skills are limited and need further development to enhance his overall work performance.
• Occasionally struggles to identify and analyze problems effectively
• Inconsistently uses logic to make decisions
• Often overlooks important information or perspectives
• Requires guidance in weighing options and making judgments

“Bob’s critical thinking skills could benefit from further development and improvement. He often struggles when analyzing complex information and tends to need additional guidance when working through challenges. Enhancing Bob’s ability to apply his past experiences to new situations would lead to a notable improvement in his overall performance.”

“Jenny is a valuable team member, but her critical thinking skills need improvement before she will be able to reach her full potential. In many instances, Jenny makes decisions based on her first impressions without questioning the validity of her assumptions or considering alternative perspectives. Her tendency to overlook key details has led to several instances in which her solutions are ineffective or only partly beneficial. With focused guidance and support, Jenny has the potential to develop her critical thinking skills and make more informed decisions in the future.”

“Tom’s critical thinking skills require improvement. He occasionally struggles to identify and analyze problems effectively, and his decision-making is inconsistent in its use of logic. Tom often overlooks important information or perspectives and may require guidance in weighing options and making judgments.”

1 – Unacceptable

Employees with unacceptable critical thinking skills lack the ability to analyze information effectively, struggle with decision-making, and fail to solve problems without extensive support from others.

• Fails to draw logical conclusions from information
• Incapable of making informed decisions
• Unable to solve problems without extensive assistance
• Fails to analyze potential problems before making decisions
• Struggles to think critically and ask relevant questions
• Cannot effectively identify alternative solutions
• Lacks the ability to apply logic and reason in problem-solving situations
• Does not consistently seek input from others or gather information before making a decision
• Regularly fails to recognize or address important issues
• Makes hasty decisions without considering potential consequences
• Lacks objectivity and often relies on personal biases
• Resistant to alternative viewpoints and constructive feedback

“Unfortunately, Sue’s critical thinking skills have been consistently unacceptable. She fails to draw logical conclusions from available information and is incapable of making informed decisions. Sue has also shown that she is unable to solve problems without extensive assistance from others, which significantly impacts her performance and the team’s productivity.”

“Jane’s performance in critical thinking has been unacceptable. She often fails to analyze potential problems before making decisions and struggles to think critically and ask relevant questions. Jane’s inability to effectively identify alternative solutions and apply logic and reason in problem-solving situations has negatively impacted her work. Furthermore, she does not consistently seek input from others or gather information before making a decision. It is crucial for Jane to improve her critical thinking skills to become a more effective and valuable team member.”

“Susan’s critical thinking skills are unacceptable. She regularly fails to recognize and address important issues, and her decision-making is often hasty and without considering potential consequences. Susan frequently lacks objectivity and tends to rely on personal biases. She is resistant to alternative viewpoints and constructive feedback, which negatively affects her work performance.”

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