We are well and truly back in to the New Year at this stage and each New Year brings with it new goals and targets. The first quarter of each years is also traditionally a time to assess where the business is going and where the employees will fit in as a part of this or how they will help achieve this goal.
A performance appraisal is the traditional method by which a company seeks to assess individuals and set targets for the coming year. However this process can often be mistaken for a negotiating exercise over pay and conditions by employees and employers alike and the real crux of the matter is forgotten about, the appraisal itself.
A performance appraisal (or performance review) is essentially an opportunity for individual employees and those concerned with their performance, typically Line Managers, to engage in a dialogue about each individual’s performance and development, as well as the support required from the Manager. It can in itself be a hugely successful process if managed correctly and can help the organisation achieve its overall goals also. Ideally a Performance Appraisal will follow five key elements which are:
1. Measurement– assessing the employee’s performance against any previously agreed targets or objectives.
2. Feedback– the Line Manager will provide information to employees on their performance and progress, and on what is required to continue to perform well in the future.
3. Positive reinforcement– the Line Manager will emphasise what has been done well and making only constructive criticism about what might be improved.
4. Exchange of views– how employees can improve their performance, the support they need from their Line Managers to achieve this and their aspirations for their future career.
5. Agreement– both the Line Manager and the employee jointly coming to an understanding about what needs to be done to improve and sustain performance.
The Organisation’s vision is essential to the performance appraisal process, as this is the overall objective of the Company, and the individuals objectives should feed into this also. This is where the majority of mismanagement of the process takes place, where Line Managers and employees agree on objectives but do not see how these feed in to the larger objectives of the Company - as such the process becomes largely irrelevant. It is crucial that all elements of the business are aligned and basically all pulling in the same direction.
If a Company’s main target is to break into new regions/territories or increase customer retention, however will this employee help achieve this? The employee could be tasked with finding out particular information about this territory or in the case of retention the employee could be set the objective of increasing customer service standards in order to improve retention. This is where some appraisals go wrong and do not properly align the needs of the employee to that of the business.
The appraisal is also contingent about asking the right questions, as it can be a goldmine of useful information for the Company. When you break it down it is a frank and open discussion about the good and bad points of an employee’s role with their line Manager, what they find difficult, what they need more training in, and what would improve the role. If the line Manager can ask the right questions then it could really benefit the organisation going forward and provide improvements that not only see an improvement in performance but also in morale as employees see their opinions being taken on board and implemented.
Peninsula Business Services can assist with this process through the range of performance appraisal stationery we have which is made available to you. This stationery will provide a clear guide for all Line Managers with regards to the performance appraisal process as a whole and clear guidance on how to carry out appraisals. The stationery also encompasses comprehensive notes for Line Managers and Employees in relation to the purpose and objective of the review and also advice on how to complete the forms provided.
If you wish to receive any of the Stationery that is made available to clients you can do so by downloading them from your BusinessWise account or by contacting us on 01 855 4861.
