Ten Tips For Creating A Terrific Employee Appraisal System

Face the facts: Creating a new performance appraisalthat the companys strategic plan and vision and values
system is a difficult undertaking. Its even more difficultare communicated and achieved. Core competencies
if the organization doesnt have a logical, well-tested,expected of all organization members should be
step-by-step process to follow in developing their newincluded, described and assessed. If your mission
procedure.statement isnt clearly visible in the performance
Based on my experience in helping dozens ofappraisal system, cynicism will likely result. Values
companies create performance appraisal systemsbecome real only when people are held accountable
that actually work, here are ten tips that will help anyfor living up to them.
company create a new performance evaluationSix Assure on-going communication. Circulate drafts
system that will provide useful data and beand invite users to make recommendations. Keep the
enthusiastically supported by all system users.development process visible through announcements
One Get top management actively involved. Withoutand regular updates. Use surveys, float trial balloons,
top managements commitment and visible support, norequest suggestions and remember the cardinal
program can succeed. Top management mustprinciple People support what they help create.
establish strategic plans, identify values and coreSeven Train all appraisers. Performance appraisal
competencies, appoint an appropriate Implementationrequires a multitude of skills behavioral observation and
Team, demonstrate the importance of performancediscrimination, goal-setting, developing people,
management by being active participants in theconfronting unacceptable performance, persuading,
process, and use appraisal results in managementproblem-solving, planning, etc. Unless appraiser training
decisions.is universal and comprehensive, the program wont
Two Establish the criteria for an ideal system. Considerproduce much. And dont ignore the most important
the needs of the four stakeholder groups of anyrequirement of all: the need for courage.
appraisal system: Appraisers who must evaluateEight Orient all appraisees. The programs purposes
performance; Appraisees whose performance is beingand procedures must be explained in advance and
assessed; Human Resources professionals who mustexplained enthusiastically to everyone who will be
administer the system; and the Senior Managementaffected by it. Specific skills training should be provided
group that must lead the organization into the future.if the new performance management procedure
Identifying their expectations at the start helps assurerequires self-appraisal, multi-rater feed-back, upward
their support once the system is finally designed. Askappraisal, or individual development planning.
each group: What will it take for you to consider thisNine Use the results. If the results of the performance
system a smashing success? Dont settle for less.appraisal are not visibly used in making promotion,
Three Appoint an Implementation Team. This tasksalary, development, transfer, training and termination
force should be a diagonal slice of both appraisers anddecisions, people will realize that its merely an exercise.
appraisees from different levels and functions in theTen Monitor and revise the program. Audit the quality
organization. The implementation team is responsibleof appraisals, the extent to which the system is being
for accomplishing the two major requirements for aused, and the extent to which the original objectives
successful system. First, developing appropriatehave been met. (One of the great advantages of an
appraisal forms, policies and procedures. Second (andonline performance appraisal system is that all of
the task too often overlooked) assuring a successfulthese data are available instantaneously.) Provide
deployment.feedback to management, appraisers and appraisees.
Four Design the form first. The appraisal form is aTrain new appraisers as they are appointed to
lightning rod that will attract everyones attention. Designsupervisory positions. Actively seek and incorporate
the form early and get lots of feedback on it. Dontsuggestions for improvement.
believe anybody who tells you that the form isntA companys performance appraisal process is
important. Theyre wrong. If youre designing a newcritically important. It answers the two questions that
form internally, make sure it assesses both behaviorsevery member of an organization wants to know: 1)
and results.What do you expect of me? and 2) How am I doing
Five Build your mission, vision, values, and coreat meeting your expectations? Using these ten tips will
competencies into the form. Performance appraisal ishelp you develop or select a system to will give
a means, not an end. The real objective of anyaccurate and complete answers to everyone.
performance management system is to make sure