Use appraisals to manage performance

Rating performance

There are a lot of different methods of appraisal, and it is important that you choose the one that best meets the needs of your employees and your business. Some businesses rate performance against objectives, some use other criteria. You could choose one or a combination of the following examples.

Rating

With this method devise a list of specific elements of the job to be assessed. Then rate the employee for each element with a number from, say, one to six, with one being excellent and six unacceptable.

This system is simple to devise and easy to understand. However, there is a risk that appraisers will continually score employees around the middle numbers: having more numbers in the scale (0 to 100 for example) may reduce the risk of this happening.

Critical incidents

The appraiser keeps a record of critical incidents, ie specific occurrences of good or bad performance, throughout the year. They discuss these incidents with the employee as and when they happen, but at the end of the year these records form the basis of the appraisal.

This method removes the tendency to concentrate on the recent past in annual appraisals, and means that employees are judged on incidents rather than a subjective scoring system. Its success depends on whether there are sufficient incidents to make a sound assessment and may not suit some kinds of work.

Comparison with objectives

At each appraisal, the employee and appraiser should agree new objectives for the following period. The next appraisal then concentrates on how far those objectives have been met. If the employee falls short on any of them, the appraisal offers the opportunity to understand why, and to look for solutions to any problems, such as the need for further training.

Subjects covered in this guide

• Introduction
• What performance targets and appraisals can achieve
• Set up a performance management and appraisal system
• Agree objectives
• Carry out the appraisal
• Rating performance
• Reward good performance
• Here's how staff appraisals help us monitor performance and motivate staff

 

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