An employee valuation is one of the most significant parts of employee management. An employee working hard for the organization needs to get a reward for work. It s crucial to motivate the employee for better results.
Employee valuation is the process for the evaluation of the performance of an employee. It helps the organization to reward them for that performance.
An organization’s performance evaluation is dependent on the performance of individual employees. It is critical to evaluate the performance individually. The goals of the individual are dependent on the goals of the organization.
It is crucial to have a proper evaluation mechanism to have a proper appraisal scheme in the organization.
Whenever an organization hires its employees, they have a set of objectives that they want its employees to perform. These objectives resonate with the goals of the organization.
Once an organization is ready with well-defined objectives, they need to communicate them to its employees(trainees).
It is helpful for the organization if they are open with the questions and queries from the training as it brings more clarity to the whole process.
There are some points that an organization needs to Remember while creating and conveying the objective.
- The performance-based objective is the goal of an organization.
- There is no room for misinformation.
- The learning process is the duty of the trainees.
- The organization needs to conduct training in an action-oriented manner.
- Measurable results of the orientation are helpful.
Employees valuation process:
Step 1:
The first step in the process is to determine the standard to compare it with the actual performance. These standards are dependent on the organization’s goals. These standards are best suited for the specific purpose as it is easy to achieve specific goals. Clear communication while communicating these standards to the employees plays a significant role by providing much-needed clarity to the employees on what they need to accomplish.
Step 2:
The next step is to compare the actual performance with the standard performance. It helps to determine the deficiencies(if any) to improve. In the case of shortcomings, it could work as a follow-up step.
Step 3:
Now, the organization measures the performance of the employee. Performance appraisal is more of a continuous process than just a one-time event. It is good to measure the performance regularly and reward them accordingly.
Step 4:
The next step is to communicate the results to the employees.
The organization should ensure that the process is comfortable for the employee. The organization should aim at continuous monitoring and providing feedback to the employee to make the process smooth.
Step 5:
After all the monitoring, measuring, and discussions, it is time to put the process into action. Each organization has its policy to handle performance appraisal. Smooth execution of the appraisal helps to have an efficient transition in the next appraisal cycle.
Types of valuation:
Self-valuation:
Self-valuation is a common form of appraisal. The employee is responsible for the duty to evaluate his performance. The employee is the best person the evaluate his performance as he understands his abilities and weaknesses in the best possible manner.
While giving the responsibility for the evaluation to the employee, it is critical to know the rationality of the employees towards the valuation process. A trained employee is best suited for the appraisal process.
Supervisors valuation:
It is the traditional way of employee valuation. It is the supervisor’s responsibility to evaluate the performance of the employee and give constructive feedback.
Clients valuation:
The performance of an employee creates an impact on the clients. Client valuation is important for an organization to know customer satisfaction. Valuation by the client in a service-related industry is dependent upon the feedback provided by the customers.
Customer interaction works as feedback on the product.
Customers are using this product, and having a say on the product and reaching out to customers helps maintain a relationship with the customer, and it helps to improve the product where it is required.
