Performance Appraisals... The Essentials

Performance Appraisals are very complicated. They have ties to job security, promotions, salary and morale. Depending upon their effectiveness, PA's can be either a sound employee development tool or a workplace nightmare. The reason that a well thought out, reasonably planned performance appraisal system is needed at most companies is the fact that most managers are not effective and comfortable (during the year) in giving frequent, specific, job-related feedback which tells the employee where he\she stands regarding goals or expectations on the job.

Most of us are busy putting out the fires of the day and issues regarding the need to improve and feedback regarding strengths usually never makes to the manager's daily "TO DO" list. Thus, most owners and managers can't say for sure that their employees are aware of the Company's feelings concerning their performance, behavior and future in enough detail to make change likely. Your company should conduct performance appraisals with the following key elements in mind:

Basic Truths:

• Your performance appraisal system should be job related and as objective as possible. Minimize subjectivity.

• Train appraisers in the proper use of the system to ensure consistency and integrity.

• The appraisal meeting is a summary of the coaching\counseling that occurred during the year. There are no surprises.

• Effective communication is not likely to occur without investing thought and time.

• You will make an effort to maximize objectivity in the system and give your managers training.

• All managers appraise employee's performance...the question is will they do it in a way that brings about improvement.

• Establish a manager or a panel of managers as a "central control point" to look for consistent, justified, accurate and candid appraisals.

If you decide to establish a performance appraisal system, look at five possible approaches that your managers might take to conducting the performance appraisal session

1. Do as I tell you...or else. Most people won't change unless they have to. We are here for me to tell you what I want.

2. People change or improve when they want to and most don't want to...there is not much a manager can do to affect them.

3. Focus on good news...try to avoid the bad...downplay it. People will do better if you keep them happy...praise and encourage them. People work best when they are in a positive environment.

4. Lets get this over with...we both have work to do. Performance appraisal is seen as another paper work requirement.

The above approaches will result in ineffective evaluations.

5. Characteristics of an effective and motivating performance appraisal

• There are little or no surprise.

• Focus on good and bad news...strengths and weaknesses. The past, present and future.

• It's candid and honest with negatives and positives. The idea is to get insight into the subordinates position and performance. There is no avoidance, game-playing or power plays by the manager.

• It's balanced. Instead of focusing mainly on strengths or on weakness, it looks at both and reflects all the facts and covers the entire appraisal period.

• It strives for understanding and contains specific feedback regarding performance. Avoids terms such as "not doing well" and "your attitude slumped off this last quarter". Uses instead observable facts such as "You were two weeks late on the special projects report" and "there were major errors in the inventory control project. Specifically, there was no assessment of additional manpower needs and we were left short handed".

• It's a mutual activity. Both search for information that will enhance strengths and eliminate weaknesses. Both ask questions and provide answers. There is an "employee comments" section on the form.

• It strives for involvement and commitment. Works for a real understanding of the benefits of change and growth. When possible, the manager relates the job requirements to an employee need.

• It's tailored to the individual...addresses the "what's in it for me" issues. Seeks to utilize motivational opportunities. This manager understands that "what gets rewarded, gets repeated".

• Strives for self-discovery by both parties...especially the subordinate. Neither parties have all the answers prior to the session.

Benefits: The subordinate is more likely to have a clear understanding of strengths and weakness, a detailed plan for improvement in specific terms, personal commitment to get results and managerial support and follow-up....IMPROVED PERFORMANCE IS A LOGICAL POSSIBILITY. In addition to the elements listed in approach number 5, you should also carefully design the appraisal form and understand the employment law ramifications of conducting employee performance appraisals. This is not a Human Resource effort to be taken lightly.