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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