Mention performance appraisals to your employees and you stir up feelings of discomfort and anxiety almost instantly. Within seconds it is clear you have raised an awkward subject. The reaction is not that different in most parts of the corporate world.
But why is a system that is supposed to be a development exercise for the employee and a “learning moment” for the manager so widely dreaded. The answer, in most cases, lies in its implementation.
So, here are a few ways to turn an appraisal session, often a meaningless ritual, into a performance-enhancing practice.
The advantages of precision and relevance
Feedback should be specific. It should not be based on the ambiguous feelings of the supervisor. So, instead of conclusions like “you are a very dedicated worker”, something more explicit like “I have noted the amount of extra time you put in last week to ensure the delivery of the retail project much before its deadline” might work better.
It is important to be prompt with the feedback so that the talking point is fresh in everyone’s mind. Managers often wait for the year-end appraisal to criticise or appreciate an employee’s work. By then, either there is no time for improvement or it’s a little too late for appreciation.
There should be definite and realistic standards for measuring performance. Both supervisor and subordinate should know whether goals and objectives have been achieved. The supervisor should also be able to help an employee identify constructive ways to improve performance.
A two-way communication process
In order to ensure the effectiveness of a feedback session, it is essential to establish a dialogue. The purpose of the session should be explained right at the start. It is also very important to build a level of trust so that the employee is at ease during the session. Self-analysis should be encouraged since it often provides fresh insights into what might have gone wrong or what might be a better way of achieving success.
The feedback session should cover broad topics like year-long performance, satisfaction or dissatisfaction with work or work environment; long-term career objectives and individual development plans.
Focus on a positive impact
A manager should do nothing that lowers the self esteem of his team members.
A feedback can be both positive and negative. The appraisal session should be a fine balance between the two, with the scale tipping more towards the positive. Criticism should be shared in a healthy manner and at no point, should the employee feel victimised.
Also, an employee should be allowed to express his views first. Having been given the chance to explain first, the employee will approach the appraisal session with an open mind and be more receptive to the supervisor’s comments.
The big picture
There are two different aspects to performance appraisal: the administrative issues and the developmental issues. Developmental issues deal with intangibles like ability and competency as opposed to administrative issues which deal with increments, promotions, demotions etc.
Administrative issues can often be settled by a quantitative performance management system. The focus here is on quantifying what the employee has accomplished. But to arrive at the right conclusions, it is important that a quantitative approach is supplemented with behavioral observations – “what” is being achieved is as important as “how” it is being achieved. This becomes crucial in cases of performances that are below expectations as it provides the true reason behind an employee’s under performance.
The effectiveness of a performance appraisal session is as critical as its frequency. Performance management should be a continuous cycle. The senior, and his subordinates, should decide on the plans for the year ahead at the very start of the appraisal period. Business and development goals should be set. Regular performance reviews should be conducted throughout the appraisal period to ensure that the performance is on track. The accomplishment of the performance management cycle can be gauged through year-end discussions on overall performance.
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