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Performance Evaluation

Definition

Performance evaluation is a systematic process to assess an individual's job performance and productivity in relation to certain pre-established criteria and organizational objectives.

Analogy

Think of performance evaluation as grading on a report card at school. Just like how your grades reflect your understanding of different subjects based on set standards, performance evaluations measure how well someone is doing their job against established benchmarks.

Related terms

Performance Metrics: These are standard measurements used to evaluate and benchmark the performance of an individual or organization. Like specific subjects (Math, English, Science) you're graded on in school.

Feedback Loop: This is a process where the outputs of a system are circled back and used as inputs. Like when your teacher uses your test results (output) to decide what needs more focus in lessons (input).

Benchmarking: This involves comparing business processes and performance metrics to industry bests or best practices from other companies. It’s like comparing your report card with the class average or top performers' grades.