Standardized Performance Evaluation System Vs. Individual Performance Evaluation System

Employee performance appraisals are a key tool in monitoring, measuring and improving worker production. Typically, a fair and consistent evaluation tool applied with all employees works best. However, some companies tailor some aspects of their appraisals to the individual situation and abilities of a given employee.

A primary element in a standardized evaluation is a uniform appraisal tool. Generally, managers use the same form and criteria to assess all employees, or at least those who share a similar position. Usually, you assess an employee's abilities and actual performance behaviors. The more objective your performance metrics, the easier it is to maintain a consistency in the way you interpret and communicate with the employee. Given the purpose of using appraisals to motivate and encourage optimized production, uniformity allows you to measure employees on an even playing field.

An individualized appraisal is tailored to evaluate the performance of a single employee relatively to his own goals and standards. This approach accommodates that fact that employees often have different prior experience, abilities and drive to perform a job. In essence, a company may have two employees working the same position, but with different ceilings of performance. Rather than comparing or evaluating them against a preset standard, the manager and worker set goals for personal development. Evaluations then serve as a comparison of actual versus intended production.

Many organizations use a standardized appraisal for two key reasons -- it offers a fair and consistent evaluation and it is often a better protection against claims of discrimination or unfair labor practices. The individualized approach may work better in situations where you have employees in the same position, but with very different abilities. In a car dealership, salespeople often have distinct quotas based on years of experience. Thus, a more veteran seller is expected to have more advanced skills and higher-level production.

One way to maximize benefits of both appraisal types is a somewhat blended approach. Many small-business owners need to have a consistent, systematic appraisal because the risks of lawsuits are just too great. However, though you may measure employees on the same criteria, you might have different objectives based on factors like years of experience. An employee that under-performs at his particular level of experience may face demotion or termination, as long as you treat workers consistently. Inviting employee input on goals and performance also reinforces a manager's perspective.