Managers generally agree that evaluating and developing the performance of their staff is necessary but many dislike conducting appraisals. What is worse is that staff often rate their appraisal as useless and demotivating.

Marks out of ten for appraisals?

The marks might not always be high but the reality is that when appraisals are viewed and conducted in a positive way they can leave the appraisee and appraiser motivated, energised and positive about their future performance. The ability to conduct effective appraisals is one of the essentials for a successful career in management. 

1. Start at the very beginning

Misunderstanding and poor communication of expectations result in appraiser and appraisee having differing views of performance requirements, which inevitably leads to appraisals charged with disagreement, conflict and exasperation. Start the appraisal process at the beginning of the year, take time to clearly communicate required outcomes and levels of performance and check that appraisees understand and agree. This forms a clear reference point for performance review – job descriptions, goals, objectives, key performance indicators, competencies can all be used to establish clear performance expectations. 

2. Prepare

Preparation is essential if appraisals are to go well. A successful appraisal is the culmination of a years worth of observation, reflection, evaluation and review.

• Keep notes throughout the year. No-one can hope to rely on their memory for everything, keep information that will be useful at appraisal noting examples and relevant feedback on the appraisee’s performance. Being accurately informed helps to avoid conflict during appraisal meetings and builds credibility. Encourage individuals to keep similar notes to help them review their performance. 
• Set a mutually convenient time for the meeting. Allow enough time for the meeting and don’t cancel it
• Book a suitable room for the meeting. Think about privacy, removing distractions and the room layout. Remove barriers such as desks and aim for a calm, conversational environment
• Issue relevant documentation and allow enough time for completion. Use the issue of documentation to reiterate the purpose of the appraisal meeting
• Gather additional feedback, particularly if you have little direct contact with the individual
• Review all the evidence and feedback that you have – look for trends, do not just focus on one-offs
• Prepare a draft appraisal document and ask the appraisee to prepare a draft. This will encourage them to review their own performance
• Think ahead about potential development solutions and ways of stretching the individuals talent
• Prepare for their response. Anticipate how they may view your comments and think about how you will handle their reaction.

3. Run the meeting

The aim should be to run an extended, structured conversation that focuses positively on performance and development. 

• Clarify the agenda for the meeting. Confirm your expectations for the appraisal, the structure and the time available; clarify the documentation to be used and the purpose of any signatures if required. Use this introduction time to set the appraisee at ease.
• Initiate two way conversation. Explain that you will be giving your views on their performance and you will be asking them for their views. Asking them to give their views first helps build the discussion.
• Use documentation to structure the conversation. Appraisal forms will provide a series of headings/topic areas for discussion; work through these systematically but try not to be too rigid. Focus on areas of importance and skip areas which will not benefit from discussion. 
• Ask questions and listen.  This allows the appraisee to become involved and avoid ‘school report’ syndrome. Use questions to prompt discussion and explore views. Managers often shy away from asking appraisees for their views for fear that they may be different to their own. Using notes and objective evidence within appraisals helps to avoid such differences and promotes healthy discussion. 
• Be prepared to take an appraisee’s comments on board. Include them in the appraisal documentation if necessary
• Review performance objectively.  
• Explain the basis of your evaluation. If an assessment or rating scale is used, be prepared to own your decision and explain the reasons for your assessment. Be clear and firm with your reasons.

4. Set development actions

The essence of appraisal is to improve future performance and development planning is an essential part of the process. Highlight strengths and areas for development, discuss development priorities, explore ways of using strengths and jointly agree development objectives. Encourage the appraisee to come up with their own suggestions for development and offer ideas if they are needed. Ensure that development actions are realistic and achievable and note these on a development action plan including dates for review. 

5. Summarise the appraisal meeting

Bring the meeting to a close summarising the key points that you have discussed. Ensure any necessary signatures are collected and you explain any next steps.

Finish on a positive note – Thank the appraisee for the contribution they have made and for their input to the meeting.

6. Follow up

Many employees have the belief that appraisals are a waste of time and much of the reason for this is that nothing happens after the appraisal meeting. Ensure that promises made and actions set are followed through.

Beverley Thompson is a Director and Senior Consultant of Humanics Limited. Consultants in Executive Resourcing, Human Resource Management and People Development.

Reviewing performance objectively

• Review against performance expectations. Evaluate performance against job requirements clarified at the beginning of the  appraisal period
• Review performance not the person. This helps to avoid appraisals becoming too ‘personal’ and judgmental. There is a world of difference between hearing ‘the report was incomplete ‘ and ‘you didn’t do a good job on that report’
• Use specific examples to illustrate performance levels. Be prepared to explain what the appraisee did or said in a certain situation or describe the outcome when they behaved in a certain way. Examples help to avoid conflict; facts and observations are difficult to deny whereas subjective judgments present themselves to be challenged
• Don’t confuse effort and hard work with performance. They are not always the same. Be careful to praise the right thing, you can recognise and praise effort and still highlight that it has not resulted in the right level of performance.

Don’t even start an appraisal unless ……

• you understand the purpose and format of the appraisal meeting within your organisation
• you have clearly communicated this and its importance to appraisees 
• you have positioned appraisal as a positive, developmental process
• you clarified the expectations that you had for their performance at the start of the year
• you have spent sufficient time observing or collecting information on their performance throughout the year
• you have noted objective, relevant feedback relating to their performance