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Designing of personnel evaluation and incentives systems

The main objective of the remuneration system that the firm will select is to align remuneration with the business strategy, and the desired state in the organizational culture lever. The Personnel Evaluation essentially refers to the evaluation of employee performance and is used frequently on business, either formally or informally. Besides the accurate and objective measurement of performance, the company, through this, seeks to:

  • Identify training needs,
  • Improve performance and develop its employees,
  • Improve the internal organization of the company.
  • Align the personal goals with the Strategy and Objectives of the Company
  • Strength teamwork

The Personnel Performance Evaluation process

Every business has its own strategy and different approaches for the application of evaluation methods. The company should design the content and with which system the evaluation is planned to be accomplished, as well as what goals and objectives will serve. The process includes:

  • Analysis of work (Content, tasks, activities, requirements)
  • Identification of criteria (Criteria for the evaluation)
  • Determining of the scale (Weight in each dimension evaluated by the evaluators)
  • Setting Goals, Identifying Training Needs
  • Development of evaluation form
  • Development of the scoring process
  • Implementation of the evaluation system (The effective implementation of the system is the basic rule of successful system design. But in order for the system to operate effectively, all people involved and affected, must be trained.)

The aims of the incentives are:

  • Performance reward
  • Justice
  • Competitiveness
  • Efficiency, economy
  • Alignment with business strategy
  • Decision making about promotions, salary increases, layoffs