Performance appraisals, if done correctly, can be a useful tool that encourages employees by outlining expectations, rewarding excellent performance, establishing a baseline for salary structure, and providing an open dialogue for improving overall productivity. If done incorrectly, they can be a disaster.
The Good
Valuable performance appraisals should contain the following characteristics:
- Goals with measureable results
- Clear performance expectations
- Rewards for performance
- Coaching and allowing the employee the freedom to do their job
- Opportunity for open dialogue
The Bad
Even companies with the best intentions can fall short with their appraisal efforts. Be careful not to make these common mistakes:
Late Appraisals
In the pile of workplace demands, appraisals often end up at the bottom. This may cause your employees to feel that they are not important or valuable to the organization. It may also lessen the manager's credibility.
Kitchen Sinking
An annual evaluation should reflect only the year evaluated. But many managers bring up issues from the past. Focus on present issues and opportunities. Managers should also be careful to focus on the entire year, not just the last few months.
Inconsistency
Inconsistency robs an appraisal process of its legitimacy and sets the organization up for claims of discrimination.
Focusing on Vague Behaviors
Managers must be careful to be specific when addressing behaviors that need to be changed. Simply telling an employee that they have a bad attitude or are not a team player is not enough. Instead focus on a very specific behavior. (Vague: Bad attitude. Specific: Employee does not accept responsibility and should ask customers if they need help as soon as they walk into the store.
One-Sided Dialogue
Think of a performance appraisal as a conversation with guidelines. A manager should take the time to review the evaluation with the employee, then include a time for the employee to ask questions and make comments.
Not Setting Good Goals
Set goals for the future. Keep them SMART: specific, measurable, attainable, realistic, and timely.
The Ugly
Obviously the worst thing a company can do is to not adopt any type of performance appraisal system. Employees must receive annual feedback to continue to increase productivity and maintain positive attitudes. Performance appraisals should also tie directly to an employee's job description. For more information on performance appraisals, contact ProValue.
