Performance Appraisals

I. Avoid too much bureaucracy

To be effective performance appraisals need some formality. We are concerned with outputs and agreed goals so some record is needed. Try to keep it to a minimum.

II. Points to cover in a Performance Appraisal system

a. Key responsibilities – What is each person responsible for? What is the objective of the job?

b. Goals – What is to be achieved this coming year in relation to the responsibilities? How do these fit into the Strategic Business Plan of the business?

c. Plans – How are the goals to be achieved?

d. Review method – How will they know they have got there?

III. Implementing a system

If you wish to bring in an easy to manage system don’t do it all yourself. Ask your staff to draft their own key responsibilities (If they don’t already have them), goals, plans and reviews. Say that you would like it in no more than two pages. You can then sit down with them and discuss it. Make a time and don’t be rushed about it, and after a discussion you will reach an agreement on goals and plans which can be used for the year. Do not be afraid that people will set low achieving goals and that you will have to talk them up. Goals should be SMART (Specific, measurable, achievable, relevant and timely). After agreement encourage them to go for it, and make sure they know they will have your full support.

IV. Review sessions

Once the goals are in place it is necessary to set up a review programme. This will depend on the size of the business but once a year is not meaningful because so much happens in between. Continuous performance appraisals are a business owner or manager’s responsibility. If something needs attention, do it straight away, don’t wait for an appraisal to bring it up. However in preparation for the planned review meeting, whether it is once or four times a year, keep a diary noting your observations about a person’s strengths, opportunities for improvement, and where there may be a training need.

V. Trust essential

The key to any performance appraisal system working well is the atmosphere of trust that you have been able to build up in the business you are managing. If people don’t feel comfortable about giving or receiving feedback the system is not working properly and becomes a ritual. The paperwork becomes an end in itself. The review session must be looked on as a wonderful opportunity to sit down with people who report to us, and discuss how they are progressing towards agreed goals, and training needs, which will develop them personally.

VI A more formal Performance Appraisal system

If you keep the system simple people will use it to advantage. It must be suitable for the size of the business. At the other end of the scale to the simple system described above is a very formal system shown as an example below. Somewhere in between the two may be the answer for you. The example may be used to your advantage.