An effective performance appraisal system is a cornerstone of successful business development. It is one of the best human resource solutions, which will help to align your team member's activities with overall business goals and objectives. A formal appraisal system consisting of a position description listing key result areas and expected behaviour (critical competencies) will help managers to develop and get the best from team members.
A system which measures the same criteria mentioned in the position description, will help to provide a fair and equitable measurement method. The performance appraisal should include a self-appraisal, action plan and learning development plan. The following procedure will assist managers to confidently perform an effective performance review and help develop their employees and business.
1. Gather appraisal information
- Recall regular performance review outcomes
- Obtain job description
- Gather information from action/development plan
- Identify Key Result Areas and Competencies to measure
- Modify appraisal forms to include what is measured
2. Complete the forms
- Team member to complete all self appraisal forms
- Rate Key Result Areas and Critical Competencies
- Manager to complete all appraisal forms
- Manager to determine overall performance rating
- Complete action and development plan
3. Conduct appraisal interview
- Set date, time and venue with no interruptions
- Encourage open and honest discussion
- Have team member talk about their self appraisal
- Give specific feedback
- Discuss Key Result Area feedback with team member
- Discuss Critical Competencies with team member
- Discuss achievements/development opportunities
- Finalise, distribute and gain commitment
- Review job description for next periods appraisal
4. Follow up meeting
- Check outcomes since performance appraisal
- Check progress of learning and development plan
- Identify commitment of team member to improve
- Take appropriate action
Businesses that see performance appraisals as a strategic method to develop employees, benefit because the added competence further develops the organisations capability, competitiveness and sustainability.
Being well prepared will help ensure its success, remembering if you fail to plan, you plan to fail.
A system which measures the same criteria mentioned in the position description, will help to provide a fair and equitable measurement method. The performance appraisal should include a self-appraisal, action plan and learning development plan. The following procedure will assist managers to confidently perform an effective performance review and help develop their employees and business.
1. Gather appraisal information
- Recall regular performance review outcomes
- Obtain job description
- Gather information from action/development plan
- Identify Key Result Areas and Competencies to measure
- Modify appraisal forms to include what is measured
2. Complete the forms
- Team member to complete all self appraisal forms
- Rate Key Result Areas and Critical Competencies
- Manager to complete all appraisal forms
- Manager to determine overall performance rating
- Complete action and development plan
3. Conduct appraisal interview
- Set date, time and venue with no interruptions
- Encourage open and honest discussion
- Have team member talk about their self appraisal
- Give specific feedback
- Discuss Key Result Area feedback with team member
- Discuss Critical Competencies with team member
- Discuss achievements/development opportunities
- Finalise, distribute and gain commitment
- Review job description for next periods appraisal
4. Follow up meeting
- Check outcomes since performance appraisal
- Check progress of learning and development plan
- Identify commitment of team member to improve
- Take appropriate action
Businesses that see performance appraisals as a strategic method to develop employees, benefit because the added competence further develops the organisations capability, competitiveness and sustainability.
Being well prepared will help ensure its success, remembering if you fail to plan, you plan to fail.
David McGillivray is a Human Resource Management consultant with over 20 years of management experience in small, medium and large organisations. He has considerable knowledge in strategic, operational and compliance HRM.
In 2002 David established Successful Business Strategies and is enjoying guiding company owners, managers and employees to excellent results. David contributes a wealth of knowledge that helps to align an organisation's vision and systems with its people, so that each is working toward the same objectives.
In 2002 David established Successful Business Strategies and is enjoying guiding company owners, managers and employees to excellent results. David contributes a wealth of knowledge that helps to align an organisation's vision and systems with its people, so that each is working toward the same objectives.
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