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Employee Performance: Definition, Assessment (Evaluation), Indicators, Factors, etc

Employee Performance: Definition, Assessment (Evaluation), Indicators, Factors, etc

Definition of Employee Performance

Employee performance is the result of employee work seen in aspects of quality, quantity, working time and cooperation to achieve the goals set by the organization (Sutrisno, 2019, p. 123). Thus performance is the quality and quantity of the output of the employee’s work. Employee performance is a fixed variable that is often paired with various independent variables that influence it such as motivation, compensation, work environment, etc.


Therefore most of the central issues of employee performance in human resource management are performance appraisals of the employees themselves. As stated by Bacal (in Wibowo, 2018, p. 186) that employee performance is a process by which individual performance is measured and evaluated.


In addition, according to Sedermayanti (2017, p. 283) the word “performance” itself is also a term with a broad spectrum of definitions which can refer to the notion of: doing, carrying out, carrying out, perfecting with responsibility, etc. However, in the context of management, the intended performance is the result of a process that refers to and measures over a certain period of time based on predetermined conditions or agreements (Armstrong in Edison et al, 2018, p. 188).


Mangkunegara further (2017, p. 9) explains that employee performance is the result of work in quality and quantity achieved by an employee in carrying out tasks in accordance with the responsibilities given to him. That is, it is not only the quantity, quality, and completion that are considered, but also the responsibility and suitability of the task or job given.


In addition to influencing the quantity, quality, and suitability of the employees’ own work, performance also has an important role in helping the organization achieve common goals. This is as revealed by Hamali (2016, p. 98) that employee performance is the result of work that has a strong relationship with organizational strategic goals, customer satisfaction and contributing to the economy.


It can be concluded that what is employee performance is the result of employee work in terms of quality, quantity, processing time, cooperation, and the suitability of the final results that can be assessed or evaluated based on predetermined indicators or objectives to ensure that organizational strategies and goals can be achieved well.


Factors Affecting Employee Performance


Work carried out by employees takes place in an internal and external environment that can affect the success or failure of performance. Therefore, the factors that affect employee performance are important things that must be considered to ensure good performance. According to Armstrong & Baron (in Wibowo, 2018, p. 100) the factors that influence employee performance include the following.


personal factors,

indicated by the level of skill, competency possessed, motivation, and individual commitment.


leadership factor,

demonstrated by the quality of encouragement, guidance and support provided by managers and team leaders.


team factor,

demonstrated by the quality of support provided by colleagues.


system factor,

demonstrated by the existence of work systems and facilities provided by the organization.


Contextual/situational factors,

indicated by the high level of pressure and changes in the internal and external environment.


Meanwhile, Mangkunegara (2017, p. 67) reveals that there are two main factors that affect employee performance, namely as follows.


Ability Factor

Psychologically, employee abilities consist of potential abilities (IQ) and reality abilities (knowledge and skills). Therefore employees need to be placed in jobs that match their expertise. Leaders and employees who have good skills in analyzing and completing work well will give satisfactory performance results.


Motivation Factor (Motivation)

Motivation is formed from an employee’s attitude in dealing with work situations. Motivation is a condition that drives employees directed to achieve work goals. Motivation is the encouragement between leaders and employees in facing various problems at work and overcoming these problems by finding solutions together.


Employee Performance Indicators


To find out the low level of employee performance, a concrete unit of measurement is needed that has high accountability in measuring it. These units are commonly referred to as dimensions and indicators. According to Robbins (in Sopiah & Sangadji, 2018, p. 351) there are six performance indicators which include the following.



Quality of work is measured from the leadership’s perception of the quality of the work produced and the perfection of the tasks on the skills and abilities of employees.



It is the amount produced, usually expressed in terms such as units, the number of activity cycles completed.



Is the level of activity of completing work within a certain time that has been set as a standard for achieving the time of completion of work.



is the level of use of organizational resources (energy, money, technology, raw materials) is maximized with the intention of increasing the results of each unit in the use of resources.



Is the level of an employee who will be able to carry out his work function, work commitments with agencies and employee responsibilities to the organization.


Meanwhile, according to Sutrisno (2019, p. 152) to measure employee performance there are six indicators which are key areas of achievement for companies, which include the following.


Work result

The level of quantity and quality that has been produced and the extent to which supervision is carried out.


Job knowledge

The level of knowledge related to work assignments will directly affect the quantity and quality of work results.



The level of initiative while carrying out work assignments, especially in terms of handling problems that arise.


Mental dexterity

The level of ability and speed in receiving work instructions and adjusting to the way of work and existing work situations.



The level of work enthusiasm and positive attitude in carrying out work tasks.


Time and attendance discipline

The level of punctuality and level of attendance determine the quantity and quality of work as well.


Employee Performance Assessment


Performance appraisal can be done in various ways, both by conducting research on the effect of an action that has been taken to improve performance, performance evaluation, to KPI assessment.


Performance Appraisal Process


However, in general, according to Sedermayanti (2017, p. 275) states that the performance appraisal process can be carried out as follows.


Identify the specific purpose of performance appraisal. Examples: promoting employees, identifying training needs, diagnosing employee problems.


Determine the tasks that must be carried out in the job (job analysis).


Check running tasks.


Assess performance.


Discuss the results of the assessment with employees.


Meanwhile, according to Allen (in Wibowo, 2017, p. 192) states that the resulting performance appraisal process lies on several main bases, namely timing, clarity, and consistency with the following elaboration.



Performance appraisals should be governed by calendars, not hours. Managers must hold at least two formal meetings with workers each year.



We cannot judge how well a worker is doing a job until it is clear what the job is all about.



An effective appraisal process improves directly with the mission statement and organizational values. What is stated in the performance appraisal must be the same as what is contained in the mission statement.


Performance Assessment Purpose


The purpose of evaluating employee performance has a broad direction and nature, without time limits and is not related to certain achievements within a certain period of time (Wibowo, 2017, p. 43). According to Hamali (2018, p. 120) some of the objectives of evaluating employee performance are as follows.


Payroll administration.


Performance feedback.


Identify individual strengths and weaknesses.


Documenting employee decisions.


Reward for individual performance.


Identify poor performance.


Helps in identifying goals.


Make promotion decisions.


Employee termination.


Evaluate goal achievement.


In addition, Sunyoto (in Mangkunegara, 2017, p. 10) the objectives of performance evaluation include the following.


Increase mutual understanding between employees about performance requirements.


Recording and acknowledging the results of an employee’s performance, so that they are motivated to do good, or at least achieve the same as previous achievements.


Provide opportunities for employees to discuss their wishes and aspirations and raise awareness about their career or the job they are currently in.


Defining or reformulating future goals, so that employees are motivated to excel according to their potential.


Examine the implementation and development plan according to training needs, specifically the training plan, and then approve the plan if nothing needs to be changed.


Employee Performance Evaluation


Performance evaluation is a process of assessing or measuring to find out how high or low an employee’s performance is. According to Mangkunegara (2017, p. 13) performance evaluation must be based on several important notes as follows.


The focus is on building strength to solve any problems that arise in the implementation of performance evaluation. So it’s not just solving the problem itself, but leaders and employees are able to solve the problem well every time, every time there is a new problem. So what matters is the ability.


Always based on a meeting of opinions, for example from the results of discussions between employees and their direct supervisors, a constructive discussion to find the best way to improve high quality.


A natural management process, don’t feel and give the impression of being forced, but consciously include it in corporate planning, carried out periodically, directed and programmed, not activities that are only once a year or activities that are carried out if the manager remembers.


According to Hamali (2016, p. 110) performance evaluation consists of eight processes and the main components are as follows.



Appraisers are employees who have the right and obligation to assess performance invaluable. The rights and obligations of the appraiser to appraise the appraised employee’s performance are generally determined by company regulations, job descriptions, and labor laws.


Gathering Information

Performance evaluation is a process of blunting information about the valued performance. Performance evaluation is part of the science of research, therefore the process of gathering information about the performance appraisal must be carried out using the principles of research science or research.



Valuable work output indicated by the workplace organization is of value consisting of work results, work behavior, and personal characteristics that are related to work.



Rated are employees appraised by appraisers. A value is an employee, a group of employees, or a work team.



Performance documentation is anything written to managers and supervisors in researching their subordinates that describes, evaluates, and comments on what their subordinates do and how to do it in carrying out their duties or work.


Comparing Measured Performance With His Superior’s Standards

Performance standards are measurements, benchmarks to measure the good or bad performance of valued employees. Performance evaluation is not possible without employee performance standards.


Performed Periodically

Implementation of performance appraisal depends on the type of work and the organization. Performance appraisal on marketing jobs.



HR Management The results of performance evaluation are information regarding employee performance. This information is used to support decision making about value. Performance evaluation is only an intermediate goal and not the final goal. A good performance evaluation value is used to give a promotion, while a bad performance is given a demotion.

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