Employee Performance Appraisal

In America's best-run and most-admired organizations,problems that arise.
employee performance appraisal is a vital andMidway through the year -- perhaps even more
vigorous management tool. No other managementfrequently -- they meet to review the individual's
process has as much influence on individuals' careersprogress toward the plans and goals discussed in the
and work lives.employee performance planning meeting. And the
Used well, employee performance appraisal is theemployee is responsible for certain elements of that
most powerful instrument that organizations have toprogress - seeking out coaching and asking for
mobilize the energy of every employee in thefeedback are two key examples.
enterprise toward the achievement of strategic goals.Phase 3 -- Employee Performance Assessment
Employee performance appraisal can focus eachAs the time for the formal employee performance
person's attention on the company's mission, vision andappraisal approaches, the manager reflects on how
values. And ideally, the process can answer the twowell the subordinate has performed over the course
fundamental questions that every single person in theof the year, assembles the various forms and
organization wants the answers to: What do youpaperwork that the organization provides to make this
expect of me? And How am I doing?assessment, and fills them out. The manager may also
But most folks scoff at the idea that there might be arecommend a change in the individual's compensation
perfect system for doing employee performancebased on the quality of the individual's work.
appraisal. They think that since their organization isBest practice calls for the appraiser's boss to review
"unique," then their system for analyzing employeethe completed assessment form before discussing it
performance must be unique, too. How foolish.with the assessed employee. One key here is not
Don't scoff -- there is an ideal method for thefalling victim to the "myth of quantifiability" -- the
assessment process. In organizations that takeerroneous belief that in order to be objective you've
employee performance appraisal seriously and use thegot to have numerical data to prove your
process well, the system functions as an on-goingassessments. Nonsense! An employee performance
process - not merely an annual event - by following aappraisal is a record of a manager's opinion of an
four-phase model.employee's quality of work, so don't shirk from candidly
Phase 1 -- Employee Performance Planningproviding that opinion.
At the beginning of the year, the manager meets withPhase 4 -- Employee Performance Review
each person for discussion on the planning piece ofThe manager and the subordinate meet, usually for
the employee performance appraisal process. In thisabout an hour. The employee performance appraisal
hour-long session they discuss the "how" and theform is reviewed with the self-appraisal that the
"what" of the job:o How the person will do the job (theindividual created assessing her own performance.
behaviors and competencies expected of theThe manager and employee talk honestly about how
company's members), ando What results the personwell she performed over the past twelve months:
will achieve over the next twelve months (the keyStrengths, weaknesses, successes and areas needing
responsibilities of the person's job and the goals andimprovement. At the end of the review meeting they
projects the person will work on).set a date to meet again to hold an employee
They also discuss the individual's development plans.performance planning discussion for the upcoming
This discussion immediately generates improvedtwelve months, starting the process anew.
employee performance because people know exactlyThis four-phase performance appraisal process not
what's expected of them. And as the manager, youonly transforms employee performance management
have just earned the right to hold people accountablefrom an annual event to an on-going cycle, it tightly
at the end of the year by making your expectations oflinks the performance of each organization member
them clear from the start.with the mission and values of the company as a
Phase 2 -- Employee Performance Executionwhole. And that's the real purpose of employee
Over the course of the year, employee performanceperformance appraisal in the organization. The real
should be focused on achieving the goals, objectivesvalue is focusing everyone's attention on what is
and key responsibilities of the job. The managergenuinely important -- the achievement of the
provides coaching and feedback to the individual toorganization's strategic goals through demonstration of
increase the probability of success and creates thethe company's vision and values in each employee's
conditions that motivate and resolve any performanceday-to-day behavior.