The 6 Simple Steps of the Performance Appraisal Process

Instructions

• 1

  Establish a file:
  
  For managers to be effective at helping employees develop skills and capabilities, it’s essential to begin the performance management process on every employees first day. Create a file for each employee and record their accomplishments, areas for improvement and regular feedback throughout the year.
• 2

  Provide regular feedback:
  
  Regular feedback should occur at least once each quarter and more frequently if an employee needs encouragement or motivation. The performance management process starts with employee planning and ends up with an evaluation of employee progress.
  
  Managers and employees should meet to discuss planning and goals throughout the year. As much as possible, a formal or semi-formal meeting with staff and unit level subordinates should take place, optimally, on a quarterly basis. The process, at its best, is a collaborative one which should add value for both employers and employees.
• 3

  Disciplinary Issues:
  
  Throughout the year, an employee may engage in behavior that warrants disciplinary action. Your company procedure for addressing discipline should include a requirement to document every disciplinary action taken. All disciplinary issues and corrective actions are taken into account and reviewed during the annual performance appraisal meeting.
• 4

  Management by Objective (MBO):
  
  This is another step in performance appraisal processes used for some employees who have defined goals and steps to achieve each goal. The objectives should be reviewed quarterly to track progress or redefine goals if neither of you see enough progress. MBO’s are also particularly helpful to employees who are on a professional track within your business.
• 5

  Conduct the appraisal meeting:
  
  As the time draws near for appraisal meetings, begin preparing the performance appraisal document. Performance is rated in areas such as job proficiency, interpersonal relationships, communication skills and aptitudes.
  
  Some employers consider employee self-evaluation; in this case, the employee should prepare their comments about their performance during the past year to be compared with their manager's or supervisor's comments on their performance.
• 6

  Follow up action:
  
  After the performance appraisal meeting, there will likely be a need for follow up on matters such as discussing areas for improvement, establishing goals for the next year and confirming the employee salary or wage increase.
  
  In addition, managers and unit level supervisors in particular, may schedule another meeting to discuss any unresolved issues that may arise during the performance appraisal meeting.
• 7

  Conclusion
  
  Performance appraisals will help management know and understand their employees strengths and weaknesses, which is essential for their training and development. It also helps employees themselves see an accurate picture of the value they bring to their organization. Overall, effective performance appraisals promote the functioning of a productive work force.