Providing feedback on performance is the basis for motivating a workforce, if done well. If used in an ineffective manner, feedback (or lack of) can also be very de-motivating. Feedback needs to be provided in a balanced (both affirming & adjusting), fair and frequent manner. Formalized individual feedback typically occurs on annual or 6-month performance reviews. Sometimes performance appraisal or performance management is also known as performance partnering because it is a partnership between the employee and manager. Performance evaluations are most often tied to merit pay, and sometimes incentive pay. Organizations typically evaluate some combination of these things:
- competencies (organization or position),
- job responsibilities (also outlined on the job/position description),
- annual goals (individual goals related to organizational or department goals).