Performance Evaluations and Goals
System
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Does anyone out there have goals/objectives as part of an employee's performance evaluation rating? If so, how does it work in terms of incorporating the goals into the evaluation? What are the consequences if an employee does not meet the goals for a particular rating period? Any info on this would be a great help.
Comments
The exempt employees are held accountable for the goals and they are usually evaluated the following period based on the agreed goals and objectives. The goals and objectives are usually business related, for example, contain or reduce operating costs by X% or increase turnaround time of production by X%. These may change from year to year depending on the strategic directions of the company. Both the manager and the employee will have to sign on this section.
Other non-business related performance measures like attendance, team-building, customer service, leadership etc are in another section of the review. The employees will always be evaluated for these categories in this section.
If an employee does not meet some of the goals agreed upon, then s/he is obviously not doing her/his job, assuming s/he is given the right resources to get the job done! The manager needs to assess the gravity of the situation since the goals and objectives are aligned with business directions of the company, in which case, the company is definitely compromised.
Usually, if an exempt employee fails to meet his/her goals and objectives, the manager needs to determine if it is a training issue or non-training issue. If it is the latter, the employee will definitely be given a poor appraisal and will be put on a probation period for another review.
We generally do not have goals and objectives for non-exempt employees.
Hope this clarifies.