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Effective performance appraisals

Performance appraisals are a powerful way of developing staff and maximising their potential. They are, however a process which if done badly can lead to low morale and staff turnover. Formal appraisals are just one part of an organisation's system of delegating, goal setting, coaching, motivating, and ongoing informal and formal feedback on employee performance. Because of the significance they carry it is important that managers acquire the planning and communication skills needed to increase sales, profits or productivity for the organisation.

The following comments have all made to me at various times in regard to appraisals, the last comment was made by a manager who had just suffered a mass defection of his telesales team to a rival organisation.

"I'm too busy to do them."

"They are a waste of time in this organisation."

"I don't need to talk to my staff to know what's going on."

"No one looks at them, anyway."

"It takes too much time away from the job."

"My boss doesn't appraise me, so why should I bother."

"They are the least of the problems we have here."

Appraisal Skills

You may, as a manager, dread the time of year that performance appraisals have to be done but it is impossible to underestimate the importance they have in your employees minds for the following reasons:

A chance to summarise past performance and establish new performance goals. This may be the only time in the year set aside for managers to speak to their employees on an equal basis and discuss performance expectations and the results of employee efforts in the past 12 months.

It may dictate future salary increases. Many assessments affect the merit rise or bonus of the employee. For this reason a well planned and communicated review can boost individual morale and productivity.

An opportunity for honest two way communication. Most surveys show that the 'top ten list of employees duties' show up to 40% difference between employees and managers expectations. The appraisal helps both to compare notes and set assignments and priorities are agreed.

A forum for career development. In some organisations career development takes place as part of the appraisal process. Even if this is not the case there is a natural link between performance review, objective setting and career planning.

A formalised document of employee performance. This may be the only time of the year that a written assessment of performance is carried out and the fact that it is reviewed by senior management and stored in personnel files give the appraisal process seriousness and importance

Appraisals are a powerful way of developing staff and maximising their potential.

The points below are the ideal starting points for effective appraisals:

Preparation
Essential for both parties to be fully prepared for discussing last years performance and setting this years objectives.

Review Past Performance Objectively
Reviewing past performance is key to an effective appraisal. Being objective is vital if the appraisee is to open up and give you the 'real' reasons for last year's results; which will ultimately lead to this year's objectives. For more information on effective reviews click on the following page: Planning an appraisal and setting objectives

Actively listen
To show a genuine concern for the other parties point of view, you must be prepared to listen and ask relevant questions.

Concentrate on performance rather than personalities
This will ensure a fair appraisal for all and will eliminate subjective judgements made on the basis of the managers likes and dislikes.

Be specific about successes and failures
Honesty in assessing performance is essential. Being clear and concise about performance means getting to the point and not glossing over awkward issues. Click here for more information on Giving feedback in an appraisal

Agree objectives
If goals are specific, measurable, realistic, stretching and agreed you will ensure a higher rate of success. Setting objectives is discussed in more detail on the following page: Planning an appraisal and setting objectives

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