Performance Appraisal

A New Paradigm

Performance appraisal has finally caught up with 21st century management practices. In the old model, performance appraisal tended to be one-way, adversarial, oriented toward the past and universally despised by all. In the new model, performance appraisal:

Involves an ongoing process of planning, goal-setting, feedback and performance review

Is an ongoing series of discussions between supervisor and employee rather than an annual event

Focuses on the future more than the past

Focuses on improving employee performance and career development rather than employees' mistakes

Is used as a tool to build trust, open communication and better supervisor/employee relationships at all levels of the organisation

Performance Appraisal Best Practices

Companies with world-class performance appraisal systems generally engage in the following practices:

Make performance appraisal part of the culture.

Walk the talk. (The CEO must model the right performance appraisal behaviour with his or her direct reports.)

Link performance appraisal to organisational objectives.

Invest in training and education.

Design the system for the unique needs of the organisation.

Use performance appraisal to build relationships between supervisors and employees.

Use flexible, customised appraisal forms.

Separate the compensation conversation from performance review.

Implementing a Performance Management System

Implementing an effective performance management system requires four basic steps:

1. The planning session. Supervisor and employee mutually agree on the job responsibilities and goals and the measurement criteria.
2. Regular performance reviews. Supervisor and employee meet every one to two months to track progress against the goals.
3. Ongoing coaching for improvement. Supervisor and employee identify areas for improvement and supervisor provides additional coaching and resources.
4. A formal, year-end performance review. Supervisor and employee agree on performance versus expectations and plan for the next year.

Preparing for the Performance Review Session

I recommend a five-step process:

1. Review the objectives of the session. The primary objectives are to review performance over the previous period, discuss any "leftover" issues and plan the future.
2. Dual preparation. Both supervisor and employee should prepare a rough draft evaluation as well as lists of any questions or issues to be discussed.
3. Plan your approach. Identify what you want to learn from and convey to the employee. Create a list of open-ended questions to keep the employee talking during the session.
4. Check your attitude. Are you doing the review because you feel obligated or because you view it as part of the performance management process?
5. Select the right time and place. Plan at least one hour of uninterrupted time -- preferably outside your office, with no distractions or interruptions.

Creating a Customised Appraisal Form

Avoid standardised performance appraisal forms. Instead, create your own customised form that:

Fits the unique needs of your organisation and your performance appraisal system

Properly documents job-based understandings that develop between supervisor and employee

Provides easy-to-reference information to properly guide the future development of the employee

Is highly flexible

Focuses more on the future than the past.

To capture the best from each employee, sharing information on company strategy and individual strategy will combine a plan for success that fits both requirements of `total success`.

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