Elements of appraisal process

The five key elements of the performance appraisal are:

• Measurement – assessing performance against agreed targets and objectives, and behaviour and attitudes against espoused values.
• Feedback – providing information to individuals on their performance and progress and on what is required to continue to perform well in the future, particularly in view of any change programme and evolution of job roles.
• Positive reinforcement – emphasising what has been done well and making only constructive criticism about what might be improved, and drawing out the importance of how things are done, as well as what is done, and ensuring effort is directed at value-adding activities.
• Exchange of views – a frank exchange of views about what has happened, how appraisees can improve their performance, the support they need from their managers to achieve this and their aspirations for their future career.
• Agreement – jointly coming to an understanding by all parties about what needs to be done to improve and sustain performance generally and overcome any issues raised in the course of the discussion.

Collating information
There is no one right way to conduct an appraisal, as the approach will depend on the nature of the business and the people involved. The appraisal meeting might take the form of a free dialogue between appraiser and appraisee, or follow a more formal structure.

As a minimum, however, it is helpful to have a form or questionnaire (paper-based or online) to collect consistent information for each appraisal. Many companies develop a questionnaire with space for appraisers to rate appraisees on specific aspects of their work such as their contribution to the team, role development and effectiveness.

As a general rule, whatever the format followed, it is helpful to gather some information on the following:

• Objectives – whether they were achieved and, if not, the reasons why this did not happen.
• Competence – whether individuals are performing below, within or above the requirements of the role.
• Training – what training the individuals have received and which training and development activities they would like to receive in the future.
• Actions – a note of any actions that need to be carried out by the individual or the appraiser.

How objectives are achieved
Increasingly, organisations are emphasising the kind of behaviour they want their employees to exhibit. They are therefore not solely concerned with the achievement of objectives, but how these were achieved.

Some organisations identify a set of positive management behaviours, for example, and rate against them. Others identify the behaviours associated with excellent service and rate against these in the appraisal process.

Preparing for the appraisal meeting

Both parties should prepare for the review meeting beforehand if a successful outcome is to be achieved.

The appraiser should consider:

• how well the individual has performed since the last meeting
• the extent to which any agreed development plans from the last meeting have been implemented
• the feedback to be given at the meeting and the evidence that will be used to support it
• the factors that have affected performance, both within and outside the individual’s control
• the points for discussion on the possible actions that could be taken by both parties to develop or improve performance
• potential directions the individual’s career might take
• possible objectives for the next review period.

Appraisees need to consider:

• what they have achieved during the review period, with examples and evidence
• any examples of objectives not achieved, with explanations
• what they most enjoy about the job and how they might want to develop the role
• any aspect of the work in which improvement is required and how this might be achieved
• their learning and development needs, with arguments to support their case for specific training
• what level of support and guidance they require from their manager
• their aspirations for the future both in the current role and in possible future roles
• objectives for the next review period.

Self-assessment

In some instances it may be helpful to guide appraisees through a self-assessment process encouraging them to assess and analyse their own performance as a basis for discussion and action. This can improve the quality of the appraisal discussion, because individuals feel actively involved in the process and as this encourages them to work through the points identified above in advance. This approach may be particularly useful with more junior staff or those not used to appraisals.
However, self-assessment can only work if individuals have clear targets and standards against which to assess themselves. It can also only be effective in a climate of trust where individuals believe their appraisers will not take advantage of an open self-assessment.

What a good appraisal looks like

A good and constructive appraisal meeting is one in which:

• appraisees do most of the talking
• appraisers listen actively to what they say
• there is scope for reflection  and analysis
• performance is analysed, not personality
• the whole period is reviewed and not just recent or isolated events
• achievement is recognised and reinforced
• the meeting ends positively with agreed action plans to improve and sustain performance in the future.

A bad appraisal meeting:

• focuses on a catalogue of failures and omissions
• is controlled by the appraiser
• ends with disagreement between appraiser and appraisee
• leaves the appraisee feeling disengaged or demotivated by the process.