Appraisals - What's all the fuss about?
Most of us will be familiar with the term 'appraisal', and many of us will have first hand experience of an appraisal system, be it as appraisee, appraiser or both. Sometimes it can feel as though an organisation is just 'going through the motions', but used effectively appraisals are powerful tools for improving performance and productivity. Read on for our no-nonsense guide.
What are appraisals?
Appraisals regularly record an assessment of an employee's performance, potential and development needs. The appraisal is an opportunity to take an overall view of work content, volume and performance, to look back on what has been achieved during the reporting period and to agree objectives for the next. It is an opportunity to consider development plans and discuss ways or working as well as what is being done. They can be an important part of the 'glue' that links organisational objectives to individual or team activities.
Why have appraisals?
In a nutshell, to review performance and potential and to identify training and career-planning needs. In some organisations the appraisal review may be used to determine whether employees should receive an element of financial reward for their performance.
What are the benefits?
Appraisals can help to improve employees' job performance by identifying their strengths and weaknesses, determining how their strengths can be best utilised within the organisation and how their weaknesses can be overcome. They can help to reveal problems which may be restricting employees' progress and causing inefficient work practices. The information from appraisals can help organisations plan training and development, assess resources and organise for the future.
How often should appraisals take place?
Every 6 or 12 months is the norm for most organisations. However, the frequency of formal appraisals will depend on the nature of the organisation and on the objectives of the system. In an environment which is less subject to change, annual appraisals may be sufficient, whereas an organisation with frequent change may want to conduct appraisals more regularly. Another option might be to conduct 'mini' appraisals or self-evaluations every 3 months or so, which are then brought together in a larger, more formal appraisal every 12 months.
Who should carry out the appraisal?
In large part this will depend on the structure of your organisation. However, as a general rule the person conducting the appraisal needs to know the appraisee and have an understanding of their role whilst being able to remain objective about the appraisee's performance. One good approach is for employees' immediate superiors to write and carry out appraisals and for more senior managers to have an opportunity to comment on each report, thus enabling senior managers to both keep a regular check on the progress of staff and to monitor the appraisal system to ensure that reporting standards are consistent.
Is a formal appraisal system really suitable for smaller companies?
Absolutely. In fact, smaller companies often have the most to gain from implementing a formal appraisal system, since their very nature can mean that the performance of every single employee is vital to the success of the organisation. Indeed, the task of appraising employees is usually easier because managers are more likely to know each employee well.
Whatever the size of your organisation, what is most important is that the appraisal system is designed to meet your needs, and no organisation, large or small, should contemplate the introduction of a formal appraisal system unless it is clear about its objectives and fully committed to its success.
What makes a success of appraisals?
For an appraisal scheme to work effectively it is important to:
- Make sure that senior managers are fully committed to the idea of appraisals.
- Consult with managers, employees and trade union representatives about the design and implementation of appraisals before they are introduced.
- Monitor schemes regularly.
- Give appraisers adequate training to enable them to make fair and objective assessments and to carry out effective appraisal interviews.
- Keep the scheme as simple and straightforward as possible.
- Remember that the introduction of a formal appraisal system does not remove managers' responsibilities for reviewing performance on a day-to-day basis. Employees should therefore be made aware of their strengths and weaknesses on a regular basis so that there are no surprises for them when they are formally appraised at the end of the reporting period.
For information on implementing an appraisal system in your organisation, appraisal training for managers or to improve your existing appraisals, contact Theresa on 01494 451681.
October 2006
