Employee Performance Appraisal - An Ideal System

In America's best-run and most-admiredand resolve any performance problems that arise.
organizations, employee performance appraisal is aMidway through the year - perhaps even more
vital and vigorous management tool. No otherfrequently - they meet to review the individual's
management process has as much influence onprogress toward the plans and goals discussed in
individuals' careers and work lives.the employee performance planning meeting. And
Used well, employee performance appraisal is thethe employee is responsible for certain elements
most powerful instrument that organizations haveof that progress - seeking out coaching and
to mobilize the energy of every employee in theasking for feedback are two key examples.
enterprise toward the achievement of strategicPhase 3 - Employee Performance Assessment
goals. Employee performance appraisal can focusAs the time for the formal employee
each person's attention on the company's mission,performance appraisal approaches, the manager
vision and values. And ideally, the process canreflects on how well the subordinate has
answer the two fundamental questions thatperformed over the course of the year,
every single person in the organization wants theassembles the various forms and paperwork that
answers to: What do you expect of me? Andthe organization provides to make this
How am I doing?assessment, and fills them out. The manager may
But most folks scoff at the idea that there mightalso recommend a change in the individual's
be a perfect system for doing employeecompensation based on the quality of the
performance appraisal. They think that since theirindividual's work.
organization is "unique," then their system forBest practice calls for the appraiser's boss to
analyzing employee performance must be unique,review the completed assessment form before
too. How foolish.discussing it with the assessed employee. One
Don't scoff - there is an ideal method for thekey here is not falling victim to the "myth of
assessment process. In organizations that takequantifiability" - the erroneous belief that in order
employee performance appraisal seriously and useto be objective you've got to have numerical
the process well, the system functions as andata to prove your assessments. Nonsense! An
on-going process - not merely an annual event -employee performance appraisal is a record of a
by following a four-phase model.manager's opinion of an employee's quality of
Phase 1 - Employee Performance Planningwork, so don't shirk from candidly providing that
At the beginning of the year, the manager meetsopinion.
with each person for discussion on the planningPhase 4 - Employee Performance Review
piece of the employee performance appraisalThe manager and the subordinate meet, usually
process. In this hour-long session they discuss thefor about an hour. The employee performance
"how" and the "what" of the job:appraisal form is reviewed with the self-appraisal
-How the person will do the job (the behaviorsthat the individual created assessing her own
and competencies expected of the company'sperformance. The manager and employee talk
members), andhonestly about how well she performed over the
-What results the person will achieve over thepast twelve months: Strengths, weaknesses,
next twelve months (the key responsibilities ofsuccesses and areas needing improvement. At
the person's job and the goals and projects thethe end of the review meeting they set a date
person will work on).to meet again to hold an employee performance
They also discuss the individual's developmentplanning discussion for the upcoming twelve
plans. This discussion immediately generatesmonths, starting the process anew.
improved employee performance because peopleThis four-phase performance appraisal process
know exactly what's expected of them. And asnot only transforms employee performance
the manager, you have just earned the right tomanagement from an annual event to an on-going
hold people accountable at the end of the year bycycle, it tightly links the performance of each
making your expectations of them clear from theorganization member with the mission and values
start.of the company as a whole. And that's the real
Phase 2 - Employee Performance Executionpurpose of employee performance appraisal in the
Over the course of the year, employeeorganization. The real value is focusing everyone's
performance should be focused on achieving theattention on what is genuinely important - the
goals, objectives and key responsibilities of theachievement of the organization's strategic goals
job. The manager provides coaching and feedbackthrough demonstration of the company's vision
to the individual to increase the probability ofand values in each employee's day-to-day
success and creates the conditions that motivatebehavior.