What is performance appraisal

Performance Appraisal

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What Is a Performance Appraisal?

The term performance appraisal refers to the regular review of an employee’s job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills, achievements, and growth, or lack thereof.

Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual, or quarterly.

Key Takeaways

How Performance Appraisals Work

Performance appraisals are usually designed by human resources (HR) departments as a way for employees to develop in their careers. They provide individuals with feedback on their job performance. It ensures that employees are managing and meeting the goals expected of them, giving them guidance on how to reach them if they fall short.

Because companies have a limited pool of funds from which to award incentives, such as raises and bonuses, performance appraisals help determine how to allocate those funds. They provide a way for companies to determine which employees have contributed the most to the company’s growth so companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers create a plan for employee development through additional training and increased responsibilities, as well as to identify ways the employee can improve and move forward in their career.

Ideally, the performance appraisal is not the only time during the year that managers and employees communicate about the employee’s contributions. More frequent conversations help keep everyone on the same page, develop stronger relationships between employees and managers, and make annual reviews less stressful.

Types of Performance Appraisals

Most performance appraisals are top-down, meaning supervisors evaluate their staff with no input from the subject. But there are other types:

There are many performance appraisal apps developed to help companies automate the evaluation process.

Criticism of Performance Appraisals

Performance appraisals are designed to motivate employees to reach and/or exceed their goals. But they do come with a lot of criticism.

An issue with performance appraisals is that differentiating individual and organizational performance can be difficult. If the evaluation’s construction doesn’t reflect the culture of a company or organization, it can be detrimental. Employees report general dissatisfaction with their performance appraisal processes. Other potential issues include:

What Are Performance Appraisals Used for?

Performance appraisals are used to review the job performance of an employee over some period of time. These reviews are used to highlight both strengths and weaknesses in order to improve future performance.

When Should a Performance Appraisal Take Place?

Performance management is an ongoing process. Throughout the year, managers are encouraged to engage with employees to establish goals, note progress, and provide feedback. Formal reviews or appraisals often take place on a yearly or quarterly basis.

What Is a 360-Degree Appraisal?

Standard performance reviews include an employee and their manager or supervisor. The 360-degree version also solicits input from the employee’s colleagues or coworkers.

Performance Appraisal Process: Meaning, Types, and Objectives

January 7, 2021 By Hitesh Bhasin Tagged With: Human resources

The performance appraisal process is defined as a process under which periodic assessment is undertaken to evaluate the performance of an employee. The input by an employee is compared with the output as per pre-defined performance goals.

Table of Contents

What is performance appraisal process?

The performance appraisal process has been used as a deciding factor for career development, and in most cases, the promotions and salary raise are directly dependent on it.

If an employee manages to garner higher ratings, it indicates netter performance by the employee and thus better growth of the organization.

In case an employee gets lower ratings, the organization can then help him to improve his performance by offering him training to improve his skills and knowledge.

More and more organizations are leaning in favor of conducting a performance appraisal process because it will help them to accomplish the business goals at a faster pace.

The performance appraisal process should be calculated over some time so that both the employer and employee can have a better idea about his performance on an annual basis.

The performance appraisal process is a formal interaction between an employee and his manager that takes the form of a structured interview to examine and discuss strengths and weakness.

This is undertaken to improve current skills and knowledge and offer further opportunities for improvement, development, and growth.

Objectives of the performance appraisal process

The purpose of a performance appraisal process is as follows-

12. Advantages of the performance appraisal process

The advantages of the performance appraisal process are as follows-

5. Disadvantages of the performance appraisal process

The disadvantages of performance appraisal process are as follows-

Types of the performance appraisal process

The different types of performance appraisal process are as follows-

1. Critical incident method

In this type of performance appraisal, process-specific incidents are identified and described. It deals in particulars about the time when an employee was at his best and even when he performed below par.

Facts

Limitations

2. The paired comparison analysis method

There are several relevant options in this paired comparison analysis performance appraisal method. All the options are set in the form of comparisons with others on the list, and the calculations are derived after looking at the highest scores.

Facts

Limitations

3. Weighted checklist method

In this type of performance appraisal process, the job of an employee is under scrutiny, and evaluation is based on effective and ineffective behavior of the employee on his job.

Facts

Limitations

4. Essay evaluation method

In the Essay evaluation method, the manager figures out both the strong and weak behavioral points of an employee.

Facts

Limitations

5. Graphic rating scales method

In Graphic rating scales method, it is the duty of the management to check on the performance level of an employee simply.

Facts

Limitations

6. Management by objectives method

In this type of performance appraisal process, a list of objectives is set up by a manager to assess the performance of an employee on a regular basis.

Facts

Limitations

7. Behaviourally anchored rating scales method

The Behaviourally anchored rating scales method is considered formatted and is a mix of critical incident technique and rating scale.

Facts

Limitations

8. 360-degree performance appraisal method

This type of performance appraisal process includes allowing co-workers, peers, clients, supervisors, and customers to fill out a questionnaire which offers detail about that particular employee.

Facts

Limitations

9. Performance ranking method

This type of performance appraisal method is used to assess the performance from highest to lowest levels of an employee.

Facts

Limitations

10. Forced ranking method

In this type of performance appraisal method, the employees are ranked in terms of allocations.

Facts

Limitations

Steps in Performance Appraisal Process

1. Establish performance expectations and standards

Appraisal processes start with establishing standards and expectations. The essence of this is to make it easy for you to identify particular output, skills, and accomplishments that will be assessed.

This first step is basically about setting the specific criteria that will assist you as a manager to determine whether or not the performance of the employees are satisfactory as well as the levels of contribution towards goals and objectives of the organization.

For you to achieve better results, it is ideal to ensure that the expectations and standards that you set are clear, concise, comprehensible, realistic and in measurable terms. It is also advisable that you make the formulation of these standards an all-inclusive affair by involving your employee too as a way of preventing vagueness and also enhancing unity in the job environment.

2. Providing regular feedback

This is simply about establishing effective communication between you and the employees in regards to standards and expectations. It is an important aspect because it helps in ensuring that employees perform their roles by the goals and objectives of the organization. Feedback can be provided formally or can be communicated informally.

Feedback should also be consistently given to help employees in keeping tabs on particular activities that they are doing as well as performing them in the right manner. Feedback should never be a preserve for special occasions but rather need to be given instantly; whether positive or negative provided that it helps the employee in performing better.

Employees need to get feedback in regards to standards expected of them, and if possible, the standards can be revised to reflect the feedback acquired from your workers.

3. Measure actual performance

This stage incorporates measuring of employees’ actual performance based on information obtained from different reports such as written, oral and statistical as well as through personal observation. This is the stage that calls for a careful choice of the ideal methods that are used in measuring performance.

It is of utmost significance to ensure that you do not make appraisal judgment based on what you feel towards the employee. It is only appropriate to make a sound measurement of findings, facts, and objectivity. The essence of this is that what is measured supersedes the manner in which it is measured hence the need for ensuring that objectivity is adhered to.

You also need to have in mind that measuring of employees’ actual performance needs to be a continuous activity that should be carried out throughout the year hence to identify all the parameters effectively.

4. Compare actual performance with standards

The next thing you need to do is comparing the actual performance with the anticipated or standard performance. This comparison is essential because it makes it possible for you as the manager or evaluator to identify the deviations of your employees from the established standards.

The results of the comparison may be depicted positive or negative results that would call for appropriate action depending on how you deem the results to be. Some of such actions include recalling, assessing and scrutinizing data concerned with the performance of employee among many others.

As an issue of concern, comparing actual performance with desired standards also enables the manager to institute appropriate measures that would help in enhancing performance that needs to be met and at the same time working on areas that should be improved to attain organizational objectives and goals ultimately.

5. Discuss results of appraisal

As earlier mentioned, Process Of Performance Appraisal is a continuous process that takes time. As a manager, the next thing you need to do is to ensure that you communicate the feedback of appraisal to your employees on a one-on-one basis.

It is always challenging for managers to present truthful appraisal to the employees and enable them to constructively accept the results, especially if it reflects more negatives than positives. But what you need to know is that discussing feedback together is a better approach of allowing them to understand their strengths and weaknesses. This ultimately has an impact on how they will perform in future depending on how you communicate the feedback whether positive or negative.

It is also advisable to prepare your workers psychologically before presenting appraisal results and also ensure that results are communicated with lots of positivity. The aim here is to motivate the employees and not necessarily to evoke emotions.

6. Come up with corrective measures

This is the final stage in appraisal processes. Initiating some effective corrective measures should be executed according to the results of the appraisal. Carefully examine the results and identify areas that require improvement and then come up with corrective action that will make it possible for employees to improve performance. At this stage.

Performance appraisal: что это и чем это грозит?

Простые ответы на сложные вопросы «Что делать?», «Как делать?» и «Для чего делать?», а также некоторые практические рекомендации – цель данной работы.

Расшифруем термины.

Начнем с краткого и общего для всех описания метода «Performance appraisal».

Дословно в переводе с анг. «Performance appraisal» означает «Оценка исполнения».

«Performance appraisal» является частью системы Управления результативностью (Performance Management) и представляет собой оценочное интервью.

«Управление результативностью» – это система управления персоналом на основе оценки достижения целей и оценки уровня развития компетенций.

В классическом варианте данная система включает в себя:

«Оценка достижения результатов» (результативность сотрудника) включает в себя соотнесение запланированных результатов с фактически достигнутыми. Проще говоря, «план-факт»! При этом, не следует переводить эту схему в принцип «сделано-не сделано». Каждая задача должна оцениваться по заранее установленным критериям (требованиям к исполнению).

Приведу пример неформальной задачи помощнику руководителя: кормить рыбок во время его отпуска. Это план.

Помощник 1 раз покормил рыбок. Это факт.

В рамках принципа «сделано-не сделано» задача выполнена. Однако, часть рыбок всплыла кверху пузом, потому что за три недели отпуска руководителя их нужно было кормить минимум 6 раз.

Этот пример также можно отнести к незнанию руководителем технологии постановки целей в формате SMART (конкретные, напряженные, измеримые, достижимые и ориентированные во времени цели). Однако нам интересны критерии оценки достигнутого результата.

«Оценка уровня развития компетенций» включает в себя соотнесение описания требуемых моделей поведения (знаний) с фактически проявляемым поведением сотрудника.

Предлагаю рассмотреть на примере для чего нужен этот пункт оценки: менеджер по продажам каждый месяц показывает большое превышение плана. Это его высокая результативность. Вместе с тем, он ведет себя некорректно по отношению к своим коллегам, переманивая клиентов и распространяя негативные слухи о своих коллегах. Такая ситуация ведет к снижению общего плана продаж по отделу и конфликтам в коллективе.

Таким образом, важен не только результат, но то, каким образом и за счет чего он достигнут.

Основные задачи Performance аppraisal.

Подготовка к Performance appraisal.

1. Оцениваем результативность.

В случае, если в компании есть внедренные показатели эффективности (KPI), процесс подготовки к оценке будет более прост и структурирован.

Нужно внимательно изучить статистические данные по результативности сотрудника (сотрудников) и на основе этих фактических показателей вывести среднюю оценку по каждому показателю за период.

Важно обращать внимание на показатели, которые «западают» и на показатели, которые «зашкаливают». Это нужно для анализа, каким образом и за счет чего достигается результат, либо для прояснения причин отсутствия результата.

В случае, если показателей эффективности нет, можно использовать метод универсальных стандартов.

Универсальные стандарты результативности разрабатываются на основе трех ключевых параметров любой деятельности: объем выполняемых задач согласно должностным обязанностям; срок выполнения задач; качество выполнения задач. При отсутствии строгой отчетности потребуется чуть больше времени на то, чтобы вывести среднюю результативность по этим трем показателям.

На этом этапе руководитель и сотрудник самостоятельно и независимо друг от друга определяют оценки.

2. Оцениваем уровень развития компетенций.

В случае, если в компании есть принятая и работающая модель компетенций с описанием проявлений в поведении, руководителю нужно «соотнести» поведение сотрудника в рабочих ситуациях с оценочной шкалой и проставить ему оценки по всем требуемым компетенциям. Затем, то же самое должен сделать сотрудник, при этом он не должен знать, какие оценки проставили ему.

В случае, если нет работающей модели компетенций, можно использовать установленные стандарты работы. Это применимо для сферы обслуживания клиентов.

Если нет ничего, то «Performance appraisal» использовать рано. Невозможно объективно оценить эффективно или неэффективно поведение сотрудника, если нет установленного и валидного стандарта, с которым можно сравнить это поведение.

На этом этапе руководитель и сотрудник самостоятельно и независимо друг от друга определяют оценки.

3. Оценочное интервью.

Предыдущие 2 этапа успешно пройдены: руководителем и сотрудником определены оценки. Пора переходить к самой ответственной части: интервью и согласованию оценок.

Нужно понимать, что задача руководителя не просто озвучить сотруднику его оценки и высказать мнение о нем лично, а именно согласовать результаты оценки и выработать план по развитию компетенций сотрудника для достижения целей. Каким образом это происходит? Рассмотрим следующую схему:

Шаг 1. Нужно определить место проведения встречи (место должно быть нейтральным – например, переговорная).

Шаг 2. Руководителю нужно подготовиться к встрече эмоционально и иметь конкретные данные по всем оцениваемым показателям, чтобы оперировать объективными фактами.

Шаг 3. Нужно установить контакт с сотрудником.

Шаг 4. Начинать беседу нужно с позитива, а именно с достижений сотрудника за оцениваемый период.

Шаг 5. Необходимо определить зоны развития согласно модели компетенций.

В этой части сотрудник должен самостоятельно обосновать свои оценки по компетенциям, приводя в примеры конкретные рабочие ситуации. В случае, если оценки сотрудника и руководителя расходятся, необходимо выявить причину. Можно использовать в этой части оценку результативности. Нужно выяснить причину низких показателей, либо причину высоких показателей, по мнению самого сотрудника. Что ему помогает, а что мешает? Связать результативность с уровнем развития компетенций. Согласовать зоны развития, текущие оценки. Составьте план развития.

Шаг 6. Подтверждение итогов. Руководителю нужно вернутся к позитивному – к признанию достижений (шаг 4.), проговорить их еще раз. Привязать хорошо развитые компетенции к уже достигнутым результатам (сотрудник рассказывает об этом на предыдущем этапе) для мотивации к развитию «западающих» компетенций.

Результаты Performance аppraisal и как их использовать.

В идеале по итогам данного мероприятия компания получает:

Performance аppraisal можно использовать:

Бессмысленно проводить Performance аppraisal в случаях:

Наиболее эффективно данный вид оценки проходит в компаниях с хорошо развитой корпоративной культурой, где есть прозрачность и карьерное планирование. Суть метода – сотрудничество руководителя и его подчиненного. Ключевое значение здесь имеет обратная связь руководителя и подчиненного.

Мифология.

Миф 1. Оценка – это маскировка «злого умысла» руководства.

Однако, где же факты? Если есть цель кого-то уволить, это можно сделать без применения столь изощренных и дорогостоящих методов. Как бы грубо это не звучало, но был бы человек, а статья увольнения в ТК РФ для него всегда найдется (при сильном желании руководства).

Миф 2. Оценка – это развлечение, типа тренинга.

Не буду спорить, является ли тренинг развлечением. Программы бывают разные и задачи тоже. А вот ключевое отличие оценки от тренинга в том, что участников оценивают по установленным критериям, а не обучают. И уже после этого формируют программы обучения (тренингов).

Миф 3. Performance аppraisal – это что-то типа психологического консультирования.

Performance аppraisal – это крайне трудоемкая и затратная по времени процедура, требующая большой подготовки. Руководитель, проводящий оценочное интервью – не личный психолог сотрудника и выбрасывать на него все скелеты, скрытые в шкафу не стоит, он может этого не оценить.

Семеняк Елена, консультант по оценке персонала, «Эрбитек консалтинг»

Performance Appraisal

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What is a Performance Appraisal?

The performance assessment often includes both the core competencies required by the organization and also the competencies specific to the employee’s job.

The appraiser, often a supervisor or manager, will provide the employee with constructive, actionable feedback based on the assessment. This in turn provides the employee with the direction needed to improve and develop in their job.

Based on the type of feedback, a performance appraisal is also an opportunity for the organization to recognize employee achievements and future potential.

The purpose of a performance appraisal

The purpose of a performance appraisal is two-fold: It helps the organization to determine the value and productivity that employees contribute, and it also helps employees to develop in their own roles.

Benefit for organization

Employee assessments can make a difference in the performance of an organization. They provide insight into how employees are contributing and enable organizations to:

Benefit for employee

Performance appraisals are meant to provide a positive outcome for employees. The insights gained from assessing and discussing an employee’s performance can help:

How to organize a performance appraisal process

Conducting a performance review with an employee requires skill and training on the part of the appraiser. The negative perception that is often associated with the performance appraisal is due in part to a feeling of being criticized during the process.

A performance appraisal is meant to be the complete opposite. Often, the culprit is in the way the appraisal is conducted via the use of language.

The way the sender of a message uses language determines how the other person interprets the message once received. This can include tone of voice, choice of words, or even body language.

Because a performance appraisal is meant to provide constructive feedback, it is crucial that appropriate language and behavior are used in the process.

Human Resources (HR) are the support system for managers and supervisors to be trained in tactfully handling the appraisal process.

The performance appraisal process:

Performance appraisal examples

Let’s take a look at one example of a Manager speaking to an employee during a performance appraisal. Below are three versions of the same example.

Compare the difference in language and behavior and how it can change the end-result:

1. An appropriate appraisal example with mixed feedback

“We can start the review by looking at how each project went for you this quarter. Does that sound OK?

First, every project you have worked on in the last four months has met the expected deadline and were all within their budgets. I see one project here was even early. They were all implemented successfully.

Well done. You have succeeded in the criteria expected of a Project Manager here at ABC Company.

Let’s take a look at a few areas where you might be able to develop your project management skills further.

In Project A, B, and C, a few team members expressed that they were unsure what to begin working on in the first few meetings and felt that they were engaging in their tasks a bit late.

When they tried to express this in later meetings, they felt there was hostility towards them. For upcoming Projects D, E, and F, is there anything that can be done to get team members up and running more quickly?

Could more detailed task planning be completed prior to the project kick-off?”

Debrief:
This example removes the errors from the first example and puts them in a more constructive light.

2. An inappropriate negative appraisal example

“Let’s talk about some of the problems.

You are never proactive when it comes to the start of a new project. Things are left too late and there are often complaints.

I have heard that your attitude has been less than positive during project meetings.

You seem to have things going on at home right now, but they shouldn’t be intruding on your work.”

This example is extreme, but it conveys most of the errors that can occur in a performance review.

3. An appropriate appraisal example for underperformers

“I wanted to talk to you today about your performance during the last quarter.

Looking at the completed project schedules and project debriefs here, I see that each of the five projects was kicked off late.

Team members reported having trouble getting the resources and information they needed to start and complete their tasks. Each project was delivered a week or more late and had considerable budget creep.

I think we really have potential to turn this around and I really want to see you succeed.

The role of Project Manager requires you to kick-off projects on-time, make sure your team members have the resources they need, and it’s crucial that any budget issues or delays are discussed with myself or the other Manager.

For the upcoming projects this month, I’d like you to draft a project plan one week prior to any project kick-off. We can go over it together and figure out where the gaps might be.

Did you have any suggestions on how you might be able to improve the punctuality of your projects or effectiveness of how they are run?»

Debrief:
This example deals with an employee who seems to be struggling. The appraiser unfortunately has a lot of negative feedback to work through, but has successfully done so using appropriate language, tone and examples:

4. The inflated appraisal example

“I don’t think we have too much to talk about today as everything seems just fine.

Your projects are always done on time and within budget. I’m sure you made the right decisions with your team to achieve all of that.

You and I definitely think alike when it comes to project management.

Keep up the great work.”

Debrief:
This example appears like a perfect performance appraisal, but it’s actually an example of how to inappropriate:

Performance Appraisal Methods

There are many ways an organization can conduct a performance appraisal, owing to the countless different methods and strategies available.

In addition, each organization may have their own unique philosophy making an impact on the way the performance assessment is designed and conducted.

A performance review is often done annually or semi-annually at the minimum, but some organizations do them more often.

5 Modern method of performance appraisal

There are some common and modern appraisal methods that many organizations gravitate towards, including:

1. Self-evaluation

In a self-evaluation assessment, employees first conduct their performance assessment on their own against a set list of criteria.

The pro is that the method helps employees prepare for their own performance assessment and it creates more dialogue in the official performance interview.

The con is that the process is subjective, and employees may struggle with either rating themselves too high or too low.

2. Behavioral checklist

A Yes or No checklist is provided against a series of traits. If the supervisor believes the employee has exhibited a trait, a YES is ticked.

If they feel the employee has not exhibited the trait, a NO is ticked off. If they are unsure, it can be left blank.

The pro is the simplicity of the format and its focus on actual work-relate tasks and behaviors (ie. no generalizing).

The con is that there is no detailed analysis or detail on how the employee is actually doing, nor does it discuss goals.

3. 360-degree feedback

This type of review includes not just the direct feedback from the manager and employee, but also from other team members and sources.

The review also includes character and leadership capabilities.

The pro is that it provides a bigger picture of an employee’s performance.

The con is that it runs the risk of taking in broad generalizations from outside sources who many not know how to provide constructive feedback.

4. Ratings scale

A ratings scale is a common method of appraisal. It uses a set of pre-determined criteria that a manager uses to evaluate an employee against.

Each set of criteria is weighted so that a measured score can be calculated at the end of the review.

The pro is that the method can consider a wide variety of criteria, from specific job tasks to behavioral traits. The results can also be balanced thanks to the weighting system. This means that if an employee is not strong in a particularly minor area, it will not negatively impact the overall score.

The con of this method is the possible misunderstanding of what is a good result and what is a poor result; managers need to be clear in explaining the rating system.

5. Management by objectives

This type of assessment is a newer method that is gaining in popularity. It involves the employee and manager agreeing to a set of attainable performance goals that the employee will strive to achieve over a given period of time.

At the next review period, the goals and how they have been met are reviewed, whilst new goals are created.

The pro of this method is that it creates dialogue between the employee and employer and is empowering in terms of personal career development.

The con is that it risks overlooking organizational performance competencies that should be considered.

The Ultimate Guide to the Performance Appraisal

Performance appraisals are a reoccurring phenomenon when it comes to managing employees. In this article, we will give an in-depth explanation of what a performance appraisal is, we’ll discuss the different types of appraisals, explain how to measure job performance, and share a template for the employee performance review.

What is a performance appraisal? A definition

The performance appraisal is also referred to as the performance review, performance evaluation, and employee (performance) appraisal. A performance appraisal is a method to regularly evaluate an employee’s job performance and overall contribution to the company in order to improve that performance.

Performance appraisals help provide feedback, they offer a formal moment in time to evaluate job performance, and they help in distributing raises and bonuses among the employees.

A crucial element of the employee appraisal is that it is a shared responsibility between the employee and manager. While the manager has the lead in this process, an active involvement of the employee creates the buy-in that is necessary to make the improvements that the performance appraisal is set up for in the first place. We will discuss this in more detail later in this article.

Performance appraisal is part of the performance management cycle. The difference between performance appraisal and performance management is that performance management encompasses all the interactions between employee and supervisor that help in improving performance. The performance appraisal is a regular sit-down as part of the performance management cycle in which the employee is formally assessed.

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Performance management includes all the formal and informal meetings we listed in the table below. These can both be planned and unplanned sit-downs.

The performance appraisal is the practice we’re most familiar with. Usually, this happens once or twice a year, taking place at the start of the year and around the half-year point. These are formal sit-downs in which the direct manager or supervisor evaluates performance on the main tasks and responsibilities of the employee. Based on this appraisal, a performance score is defined, which is used for promotions, rewards, and terminations.

What is job performance? A definition

Because performance appraisals aim to assess and improve job performance, it is important to define what job performance is.

Job performance is the degree to which an employee fulfills the tasks of their job description. People with good job performance fulfill all the requirements of their job, achieve the objectives of their jobs, and meet the criteria for performance. This is also referred to as in-role job performance.

Employees can also help their organization through behaviors that are not directly related to their task functions. This is called extra-role performance, contextual performance, or organizational citizenship behaviors.

This extra-role behavior includes helping colleagues with work when they return from an absence, helping colleagues who struggle with high work pressure or other problems, and the willingness to do things that don’t fit in your function but do contribute to the organization in general.

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Both in-role and extra-role behaviors are important when it comes to good performance and both should be taken into account during the performance appraisal.

5 Key Success Factors of a Performance Appraisal

Every company does performance appraisals differently. However, there are several best practices that every manager should know for employee performance appraisals.

1. Use a clear outline

Both managers and employees may feel uncomfortable during the performance appraisal. It is arguably the most formal setting they will be in all year and it doesn’t happen often enough to make it a common phenomenon.

Using a job performance evaluation form or some other appraisal outline will be helpful for both the preparation of the meeting and doing the performance review itself. We attached a performance evaluation form below as an example.

2. Involve the employee as much as possible

One of the key problems in employee appraisals is a lack of buy-in from the employee. A meta-analysis by Cawly, Keeping & Levy (1998) shows that there is a strong correlation between the participation of the employee and their reaction.

Employee participation is the extent to which employees are able to participate in the performance appraisal session. Employees who participated in their performance review were more satisfied, rated the session as much more fair, useful, and were much more motivated to improve. A high degree of employee participation explained 40% of the variance in satisfaction, 35% in fairness, 30% in usefulness, and 19% in motivation to improve.

3. Start with the bad news

4. Employees want more regular feedback

5. Meticulously document your employee performance appraisal sessions

Important decisions about who to promote, which salaries to raise, but also who to terminate are based on performance management information. Performance appraisal meetings should, therefore, be meticulously documented. Performance data should be assessed and reported in a standardized way across the organization and stored in a central database, for instance in a Talent Management System. T his is also important when you switch to more continuous feedback.

A 2016 paper from the NeuroLeadership Institute found that 91% of companies that have adopted continuous performance management report better data for people decisions. These companies also report making major progress in removing bias in promotion and advancement.

Job performance evaluation form

A job performance evaluation form usually has several elements. On top, the name of the appraisee is listed with their employee ID and the appraisal date, together with the name of the appraiser/direct manager, and appraisal period.

Next, there is usually a performance section, followed by a behavior section. In the performance section, the manager can rate the employee on different elements. These can be competencies or a simpler job performance scale. Both serve to assess the performance of the employee in their current role.

In the behavioral section, the employee can be rated about going the extra mile. This includes ratings about the quality of teamwork, altruism, and commitment to the organization.

The job performance evaluation form usually also includes a section for points of improvement, to be specified by the appraised and appraiser.

Competencies

Jobs often have a predefined set of competencies required to do them successfully. These competencies fall into two categories: Core competencies, and job-specific competencies.

Core competencies are the competencies that everyone in the organization needs. These are set by the board and everyone is required to have at least a minimum understanding of them. The more senior the function, the higher the required competency level. An example is being commercial for a consulting firm, where associates and partners all need to work to generate more revenue from new and existing customers.

Job-specific competencies are often defined by HR and the direct manager. They are the competencies that are required for superior performance in the job. For each competency, between three and five levels are defined with their associated behaviors. The employee is then assessed on which level he/she ranks on these competencies.

We added an example of this below, coming from the SHRM special report on performance management. As you can see, here they use a five-point scale mapped on three competency levels.

Job performance & job behavior scales

This approach is used mostly in the scientific literature. When studying individual performance, it is impossible to create a custom-made assessment for all functions. Instead, researches looked for one way to assess them all.

Researchers use an instrument that measures two things: in-role and extra-role behavior.

In-role behavior involves all the activities relevant to the employee’s job description. Questions include the following statements and having these questions answered by a direct supervisor is a quick way of assessing one’s performance.

The second element is extra-role behavior. Extra-role behaviors are all the behaviors that go above and beyond the job description. This involves helping out colleagues, organizing a team event, and more.

Based on the scores on these behaviors, the supervisor can assess the performance of the employee on both elements.

A final element that’s often added, is an item on the potential of the employee. Is the employee ready for a direct promotion, or does he/she still have to learn a lot?

Employee Performance Appraisal Apps

Below you’ll find a small sample of performance appraisal apps. Some of them are standalone appraisal systems, others are a part of a bigger, cloud-based, performance management solution.

AssessTeam
AssessTeam has developed an appraisal app that gives employees, among other things, access to their overall job performance score and an indicator of pending evaluations. Each employee can see everything that their evaluators or subordinates tell them about how they are performing in their role, from the successes and failures indicated.

Mettl 360View
Mettl 360View is a 360-degree performance appraisal and feedback tool that enables users to create and launch surveys to collect feedback from peers, managers, and clients. Users can choose to work with pre-built survey templates or custom templates. To learn more about this way of appraising and giving feedback, check our full guide to 360-degree feedback!

3Sixtylite
3sixtylite is a highly customizable online appraisal tool able to handle 360, 180 and 90-degree appraisals. While many feedback applications are developed solely based on the guidance of HR consultants, 3sixtylite’s tool is developed by HR consultants and Web Application developers combined.

StaffTRAK Performance
If you don’t have much budget, you can use StaffTrak’s simple, cost-effective, excel-based appraisal system. It’s a 5-piece performance management kit for small businesses which contains a word and excel-based quarterly appraisal form, a bonus scheme, an appraisal guide, and a probationary period management form.

Perform
Perform is a performance appraisal module developed by HR software platform People. It includes templates and pre-built/customizable questions which means you can start with your appraisals right away.

If you know or use a different employee performance appraisal app, don’t hesitate to share it with us in the comments!