Performance Evaluations

Its funny. For all the usefulness and benefits of performance evaluations, almost all managers hate to do them. Why is that? Often they haven’t been trained how to do them, or why to do them, or even the basics about evaluations. So here is a breakdown for the beginning manager (or for the experienced, grizzled manager that just hates doing evaluations – maybe I can change your mind!)

The Elements of Performance Evaluations:

Now, if we look at each item a little more closely, we begin to understand better…

Let’s start with Performance Improvement.

Performance can be measured in terms of:

  • Speed
  • Quality
  • Service
  • Value

Of course there are other factors that may be specific to your company or position, but these four items are often thought of as the most important measures of performance. Now let’s spend a moment on each of these items.


These days, most everyone is competing on the basis of speed (along with other factors). This requires everyone on the team to perform with the utmost speed. Salespeople need to input their orders quickly. Purchasing agents must order the necessary materials to arrive quickly. Production must accomplish their tasks quickly. Shipping agents must get the product out the door and to the customer in a timely manner. Bookkeepers must get the invoicing done quickly in order to get paid more quickly. And on and on.


Speed without quality is pointless. Let me say that again. Speed without quality is pointless. If customers are unhappy with the output, then every effort that every person exerted along the way is wasted. Quality is one of those things that mangers sometimes skimp on to get things out the door. But customers usually notice… and remember.


Sometimes service is the product being sold. And if its bad, you won’t last long as a company. Sometimes bad service can turn a customer away from a great product. Many people think that if they don’t deal with customers, then service doesn’t apply. Not so! Everyone has internal customers, even if they don’t deal with external customers. See the ‘A Manager’s Glossary’ tab at the top of this page to reference terms you are unfamiliar with.


Value is the combination of quality and price that allows the buyer to feel that they are getting more than they are paying for. This applies to managers (buyers) and employees (the product, for lack of a better term).

Employee Satisfaction