Performance appraisal

Performance appraisal has finally caught up with 21st century management practices.

In the old model, performance appraisal tended to be one-way, adversarial, oriented toward the past and universally despised by all. In the new model, performance appraisal:

  • involves an ongoing process of planning, goal-setting, feedback and performance review
  • is an ongoing series of discussions between supervisor and employee rather than an annual event
  • focuses on the future more than the past
  • focuses on improving employee performance and career development rather than employees’ mistakes
  • is used as a tool to build trust, open communication and better supervisor/employee relationships at all levels of the organisation.

Best practices in performance appraisal

Companies with world-class performance appraisal systems generally engage in the following practices.

  • Make performance appraisal part of the culture.
  • Walk the talk. (The CEO must model the right performance appraisal behaviour with his or her direct reports.)
  • Link performance appraisal to organisational objectives.
  • Invest in training and education.
  • Design the system for the unique needs of the organisation.
  • Use performance appraisal to build relationships between supervisors and employees.
  • Use flexible, customised appraisal forms.
  • Separate the compensation conversation from performance review.

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