Performance Evaluation: what it is, how to do it and types and methods

Excel Spreadsheets

A performance evaluation is a method of human resources management used by companies to analyze the performance of their employees. It can be linked to competencies (proactivity, written ability, organization, among others) or to activities and results.

See in this article:
What is Performance Evaluation?
Why Evaluate Performance?
Types of Performance Evaluation
Range of assessment
How to do Performance Evaluation?
Care at time of evaluation

Competency Performance Scorecard

What is Performance Evaluation?

When the subject is people management one of the most important and spoken topics is performance evaluation. This is one of the main management tools aimed at analyzing the performance of a particular person or group of people (usually in an organizational environment).

It is worth remembering that performance evaluation can occur both in people management and in the analysis of the financial result of a company. In this post we will focus on methods, types and how to do this analysis for human resources.

Why Evaluate Performance?

Having a tangible evaluation parameter where you can promote a meritocratic environment in which decisions (promotion, awards and bonuses) are based on individual performance is simply very good for the company as a whole and to motivate its employees to develop.

Also, knowing where your employees need to improve will help you a lot in setting up development plans.

Competency Performance Scorecard

Types of Performance Evaluation

There are several types of performance evaluation, which involve analyzes of the individual and the performance of the company as a whole.

Evaluation of staff performance

The performance evaluation of personnel is the process of analyzing the performance of the employees of a company in a defined period. Aspects related to the technical domain of activities, relationships with superiors, colleagues and clients, and professional posture can be evaluated, among others.

A successful method is capable of aligning the objectives of the workers with those of the organization, as well as fostering dialogue and mutual trust among the various hierarchical levels, providing space for the exchange of feedbacks. You can also identify problematic situations in the work environment, which can be corrected accordingly.

Benefits: an individual analysis will always be more judicious and focus on the right points to develop from the employee. The discretion of this process also makes the evaluator and collaborator feel more willing to exchange information.

Problems: an appraiser ends up being responsible for several team members. Finding space on the agenda to evaluate one by one is a problem. If there are many evaluations, the evaluator may end up losing focus on the process.


  1. Make the process happen perennially throughout the year. In this way, each evaluated will have a different evaluation date and the meetings will be diluted in the agenda.
  2. Divide your teams further. They may even be large, but appoint older or more accountable members to assist the Managing Director in the process. In this way, you create the possibility of having more evaluators.

Auto Performance Evaluation

Knowing yourself is one of the most important steps for personal and professional development. If you understand what works well and what can improve, you are already half way to being a better person and worker. We talk a lot about what self performance evaluation is in another post I recommend.

Self-evaluation of performance - Self knowledge

The danger here is to make sure that you are evaluating correctly. I particularly like to combine self-evaluation with a good personal strategic planning to be able to think of short, medium and long-term goals.

Benefits: Self-criticism is always a great exercise when done honestly. It causes employees themselves to create action plans to develop. When a person recognizes a point to develop and proposes a solution, he becomes more responsible for that.

Problems: as stated earlier, when exercise is done without honesty or depth, it will not help at all. Some contributors will not have the discipline to play a process that depends on only them or they simply will not be able to identify their points to develop.


  1. Encourage self-assessment as an informal company process. In this case, the employee will not need to disclose the results, but will have the full support of the organization to develop its most critical points.
  2. Encourage self-evaluation after third-party evaluations. In this way, the employee will have the opportunity to recognize his / her points of development pointed out by them.

Competency Performance Scorecard

180 Degrees Performance Rating

This is perhaps the most traditional performance appraisal used until today (which is not to say that it is the best), where managers evaluate their subordinates. It is often used in large companies.

Benefits: the employees will always know the perception of their managers, that is, those responsible for their promotions, increases and opportunities within the company. Have a good sense of what is missing to step up development aid.

Problems: is a one-way method where top managers do not even have the opportunity to receive feedback from the people who are closest to him on a day-to-day basis. The second point is that, in this way, the company runs the risk of receiving employee evaluations that do not reflect the reality, since they depend solely and exclusively on the perception of a person. Another issue related to this type of evaluation is the possibility of managers seeing employees as possible threats. In this way, some truths can be omitted and guilt outsourcing occurs.


  1. If you want to use this method, encourage employees to talk about their perception of their managers. Keep this activity and its results confidential.
  2. Find a way to evaluate the performance of managers. You can use a compiled indicator of your teams: goals met, activities and projects on time, budget compliance, turnover of the team, among others.

360 Degrees Performance Rating

The 180-degree Performance Assessment has several problems. That is why 360-degree performance evaluation has emerged and is gaining more and more strength, where employees are evaluated by their superiors, co-workers and subordinates, when appropriate. That way, the prospect of that person's real performance gets much richer.

Competency-Based Performance Assessment - 360 grades

It is also said that 360 performance ratings degrees involve suppliers and customers. I do not like this view, no. In the case of customers it is important to evaluate their satisfaction with the company as a whole and the same is true for suppliers.

Benefits: as already mentioned, the profile of a collaborator will be much better understood when perceptions come from all directions: superiors, subordinates and teammates. There are many cases in which a collaborator is highly rated by his superiors and is frowned upon within the team. This type of evaluation will give him the opportunity to improve in all spheres.

Problems: the main problem of this process is to manage the amount of information generated by it. Besides the articulation of the process itself, due to the number of participants.


  1. Carry out the process in different ways. For the closest evaluators, conduct face-to-face meetings. For more distant people, encourage the process in writing.
  2. Automate the process. Use a spreadsheet or software to avoid the need to tabulate data.

Performance Evaluation by Competencies

This, without a doubt, is my favorite method. I say this because the performance assessment by competencies is entirely based on assessing what really matters to a company. Typically you can evaluate competencies in 2 distinct groups:

Behavioral skills - has a lot to do with the employee's attitude. Some examples of skills are: proactiveness, commitment, teamwork, etc.

Technical skills - will vary from charge to charge, but are always tied to the end activity. It can be knowledge in a software, machine, equipment or specific item.

Competency Performance Evaluation - Competencies

Only by entering an important point of the definition of competences and how to apply the concept in practice, it is worth to understand the acronym CHA:

  • Knowledge
  • Ability
  • Attitude

In practice, this means that for a person to be well-judged in a given competency, let's suppose here, Excel will need to have knowledge in about the features and functions of Excel, you need to demonstrate ability to perform activities and processes on it and should have attitude to get results from it.

Benefits: the objectivity of the process greatly helps the achievement of it. It can happen that the respondent does not agree with the perception of a person, but when it is seen by more people, it becomes more considered.

Problems: it is difficult to standardize the understanding of each person on the team in relation to competencies. This can create injustices in the process, as some evaluators may be more benevolent than others.


  1. Create criteria for each competency. What would a 10 note proactivity be? And what would be a zero score? What activities are desirable or undesirable for each one?
  2. Have a person evaluated by more than one person and seek common perceptions.

Competency Performance Scorecard

Range of assessment

I don't see much mystery in this item, since it is quite obvious to me that it is totally unfeasible for someone to evaluate another person who does not have direct contact. Therefore, the ideal is to always evaluate people with whom you work directly on a daily basis, whether from a department or from a specific developed project.

Just do not invent. If the HR analyst has a superior, more 2 analysts working with him and 2 trainees, that's it. He will evaluate these 5 people and probably each of them will evaluate the other 5. Making understanding of her performance as close to reality as possible.

How to do Performance Evaluation?

I have listed a process with 6 steps, but it is good to know that there is no right or wrong and no matter how important they are, what really matters is what works in your company:

Step 1 - Define the methodology used

Basically it is to choose between one of the types of performance evaluation that we list. Here you need to know if you will use skills as a parameter, whether it will allow 360 or 180 evaluation and other criteria.

Step 2 - Choose the evaluation criteria

If your business has a management based on competencies, will certainly facilitate the process of choosing the essential criteria that should be evaluated. But regardless of that, just choose which skills and abilities are most valued by your business, employees and the position in question.

Performance Evaluation - choice of competencies

Sometimes looking at company values ​​can help with that definition. Remember to choose competencies that can be evaluated on a daily basis through the perception of behaviors. Escape from subjective items to make a good performance assessment by competencies.

To make a performance evaluation based on activities and results, remember to specify well what they will be and their weights in the assessment.

Competency Performance Scorecard

3 Step - Determine Periodicity

Again this is the kind of topic that has no way of saying that the term x or y is right. You need to understand the reality of your company. In the market, the most used options are the quarterly, semi-annual or annual performance appraisals. However, there are companies in which a person in charge prefers to hold weekly follow-up meetings with the employee.

I believe that conducting an 3 assessment in 3 months is sufficient to draw conclusions from the evolution of the company as a whole, especially the employees.

Step 4 - Conduct Performance Evaluation

It consists of applying an evaluation form or questionnaire that must be completed by the employees. Usually these will be values ​​ranging from 0 to 10, from Poor to Excellent or from 0 to 5. It is important to stress here that the more automated the process is, the better, because it generates less tabular operational work and the like. Which brings us to the fifth step.

A common mistake made in evaluations is to leave much room for interpretation by those responsible. This causes different people to be evaluated differently. Try to always set the criteria for each note. For example, if you charge probativity from a contributor, make it clear that attitudes would be desirable or undesirable for each note.

Step 5 - Document evaluations

It is indisputable that everything that is assessed needs to be documented in some way. Therefore, using a spreadsheet or competency performance assessment software will help you get the whole process done quickly and practically.

Here is an example of a result that a performance appraisal can give you with an employee's Competency Map:

Performance Evaluation - Performance Charts

LIGHT Tip: show to an employee who has evolved quite a lot in the last year the results of his first evaluation. This will make him feel proud of his evolution, as well as motivate him to a new leap in quality.

Step 6 - Meritocracy and improvement plan

It is more than essential that your company's performance appraisal work for something. It's no use just doing the evaluation and thinking it's going to be okay. That is why the human resources manager needs to have the evaluation tied to plans for improvements and meritocracy.

In the case of Meritocracy plans - Attract bonuses and promotion possibilities at the end of certain periods according to the result obtained by the employee. Having smaller periodic recognitions can also be an excellent incentive for good performance. In that sense, offer tickets for cinema, theater, weekend trips for those who are doing well.

Performance Evaluation - Criteria for Promotion and Meritocracy

In the case of improvement plans - Understand what skills your employee needs to improve and work with them on what can be done to meet their company's expectations. It may be the realization of a course that will help in a specific item, the tip for not delaying meetings, maintaining a type of behavior and so on.

Competency Performance Scorecard

Care at time of evaluation

It is important to emphasize that the performance evaluation by competences must be an ongoing process. As a manager (and even as an employee), there is no point in thinking about how the evaluation is doing only on the day you are going to fill out the performance evaluation form.

This is the type of behavior that can prevent competency-based performance evaluation from being taken seriously in everyday life. Therefore, constantly encourage the practice of feedbacks according to behaviors and always keep a record of important things that should be recognized at the time of the assessment.

And you, do performance evaluations periodically? Do you think this improves the management of your company? Do you have any doubt? Tell us here in the comments.

Competency Performance Scorecard

Excel Spreadsheets


  1. Can performance evaluation be applied to the PJ bond worker?

  2. Can performance evaluation be applied to those professionals who have a PJ link?

  3. Excellent article! Just complementing… A frequent and competency assessment is important, however, and especially in the case of sales and sales teams, I believe that the fundamental thing is to evaluate the
    performance by goals. And there come the individual and collective goals. Managing the goals is also to ensure that the company focuses on results. Besides being a criterion less subjective. Thank you! Hugs!


Please, write your comment
Please enter your name