Page 216 - DMGT550_RETAIL_MANAGEMENT

Unit 12: Store Management

Create Standards and Goals Notes

Before you can accurately evaluate employee performance, you need to establish a system to
measure that performance. For each employee, you need to come up with performance standards
and goals.
Performance standards: Performance standards describe what you want workers in a particular
job to accomplish and how you want the job done. These standards apply across the board, to
every employee who holds the same position. For example, a standard for a salesperson might
be to make $50,000 in sales per quarter. Make sure your standards are achievable and directly
related to the employee’s job.
Goals: Unlike performance standards, goals should be tailored to each employee; they will
depend on the individual worker’s strengths and weaknesses. For example, a goal for a graphic
artist might be learning a new software program that will make his or her work more efficient;
for an accounting professional, a goal might be to take the exam to become a certified public
accountant. Your workers can help you figure out what reasonable goals should be.
Once you have defined the standards and goals for each position and worker, write them down
and hand them out to your employees. This will let your employees know what you expect and
what they will have to achieve during the year to receive a positive evaluation.

Did u know? Many legal rules place the employer at risk because of employee misconduct.

Keep Track of Employee Performance

Throughout the year, track the performance of each employee. Keep a log for each worker,
either on your computer or on paper. Note memorable incidents or projects involving that
worker, whether good or bad. For example, you might note that a worker was absent without
calling in, worked overtime to complete an important project, or participated in a community
outreach program on behalf of the company.
If an employee does an especially wonderful job on a project or really fouls something up,
consider giving immediate feedback. Orally or in writing, let the employee know that you
noticed and appreciate the extra effort — or that you are concerned about the employee’s
performance. If you choose to give this kind of feedback orally, make a written note of the
conversation for the employee’s personnel file. It is also a good idea to have a policy on progressive
discipline; for some guidance.

Giving the Evaluation

At least once a year, formally evaluate each employee by writing a performance appraisal and
holding a meeting with the employee. To prepare, gather and review all of the documents and
records relating to the employee’s performance, productivity, and behavior. Review your log
and the employee’s personnel file. You might also want to take a look at other company records
relating to the worker, including sales records, call reports, productivity records, time cards, or
budget reports.
Once you have reviewed these documents and gathered your thoughts about the employee’s
work, write the appraisal (or, if you will solicit input from other managers, ask each of them to
complete an evaluation, and then compile them). Although an appraisal can take many forms, it
should include:

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