Effective Performance Appraisal

What is a Performance Appraisal?

A performance appraisal is a pre-determined formal periodic meeting between a manager and an employee, which takes place on matter-of-fact terms after preparation by both parties. A conversation in which attitudes, thoughts, opinions, desires, needs, and challenges in work and relationships are discussed. The appraisal provides the opportunity for an open conversation with the employee, in which the employee provides and receives detailed feedback about his/her work.

Appraisals are a valuable tool for the organisation and should take approximately an hour per employee (non-binding).

Appraisal as an Interpersonal Relationship

The appraisal conversation is based on an interpersonal connection that takes place between the manager and employee. During this conversation, the manager provides feedback regarding the employee’s behaviour and functions for the assessment period being discussed. The employee expresses his/her opinion regarding the evaluation, and together an improvement plan is constructed.

Appraisal Features

1. Dialogue, not monologue i.e. two-way communication.
2. Planned i.e. not a casual act.
3. Feedback refers to a defined period, is based on facts about which there is no dispute, is based on optimism, and is based on the recipient’s ability to change and improve.

Objectives of the Appraisal

1. To assist in forming an open, fair, and reciprocal working relationship to enable problems and challenges to be resolved in an atmosphere of openness.
2. To provide the employee with constructive feedback regarding how the manager and the organisation evaluate his/her performance.
3. To be a motivating factor for continual improvement through the joint determination of positive goals and objectives.
4. To assist the manager in improving his/her management of employees.
5. To provide guidance with organisational changes, changes in placement, promotion, personal development, determining salary and/or other benefits.
6. To identify areas of need and assist in formulating annual training plans.

Principles in Providing Feedback

1. Focus on specific behaviours – good feedback must be specific, not broad.
2. Give impersonal feedback – the feedback, particularly when negative, should be descriptive and not come from a judgmental or evaluative position.
3. If the review is negative, criticism should be constructive – this should focus on behaviours that the recipient can improve and do something about and should not be personal.
4. Empathy – be empathetic to the recipient of the feedback.
5. Pinpoint – be specific in defining any problem(s).
6. Move forward – suggest steps for progress.

How to Conduct an Effective Performance Appraisal

1. Clarify mutual expectations and present goals:

Showing an interest in the employee as a person in an effort to get to know him/her better will create a good foundation which is essential for the success of the conversation and is a good way to start the appraisal.

2. The employee’s self-appraisal:

Discuss two to three areas the employee feels confident about, and two areas where the employee feels he/she needs to improve.

• Be attentive, expressive, and ask questions.
• Find out the employee’s expectations of you and how, in his/her opinion, you can help in his/her role.
• Listen carefully, as you may change your opinion after receiving the employee’s feedback.
• Encourage the employee to set goals independently and offer ways and tools to measure these.
• Remember that ideas that are jointly agreed are more likely to be realised.

3. The manager’s appraisal:

Address the employee’s strengths and areas for improvement. Express your opinion constructively; do not get into a confrontation.

• Strive to use concrete examples.
• Discuss matters with the employee, do not preach to him/her.

4. Objectives and areas for improvement:

The focus of the conversation should be anchored in drawing conclusions from the past, to initiate positive change in the future. It is best not to engage in more than two to three topics of discussion.

• Set goals that you believe in, even if they are contrary to the employee’s opinion. However, try to reach an agreed plan and agreed goals with the employee, as joint consent increases the chance of realisation.
• Offer assistance in achieving the goals set for the employee (coaching, training, mentoring, courses, etc.).
• In collaboration with the employee, establish a follow-up plan and timelines for meeting the goals decided upon.

5. Objectives/goals:

• Goals must be specific: to portray exactly what you want to achieve, it is important to describe it in concrete terms.
• Goals must be measurable: there is nothing more frustrating than thinking that you have reached a goal, but not being sure because the goal cannot be measured.
• Goals must be achievable: otherwise, we give up before we have even started.
• Goals must be realistic: that is, adapted to the employee’s abilities.
• A timeline for completion must be agreed: because a deadline motivates action.