8.9 Completing and Conducting the Appraisal

So far, we have discussed the necessity of providing formal feedback to employees through a systematic performance evaluation system. We have stressed the importance of ensuring the HR professional understands how often performance evaluations should be given and whether they should be tied to pay increases.

The next step is to make sure you know the goals of the performance evaluation; for example, are the goals to improve performance and also identify people for succession planning? You will then determine the source for the performance evaluation data and then create criteria and rating scales that relate directly to the employee’s job description. Once this is done, the successful functioning of the performance evaluation system largely depends on the HR professional to implement and communicate the system to managers and employees. This will be the primary focus of our next section.

Best Practices in Performance Appraisals

The most important aspects to remember when developing a performance evaluation system include the following:

• Make sure the evaluation has a direct relationship to the job. Consider developing specific criteria for each job based on the individual job specifications and description.
• Involve managers when developing the process. Garner their feedback to obtain “buy-in” for the process.
• Consider involving the employee in the process by asking the employee to fill out a self-evaluation.
• Use a variety of methods to rate and evaluate the employee.
• Avoid bias by standardizing performance evaluations systems for each job.
• Give feedback on performance throughout the year, not just during performance review times.
• Make sure the goals of the performance evaluation tie into the organizational and department goals.
• Ensure the performance appraisal criteria also ties into the goals of the organization for a strategic HRM approach.
• Often review the evaluation for each job title since jobs and expectations change.

As you can see from Figure 8.9.1. “Performance Review System”, the performance appraisal aspect is just one part of the entire process. We can call this a performance review system. The first step of the process is goal setting with the employee. Building out the performance appraisal criteria with the employee in advance of the appraisal time frame is a very effective way to communicate and set expectations – get on the same page. This could mean showing the employee his or her performance appraisal criteria or sitting down with the employee to develop MBOs. The basic idea is that the employee should know the expectations and how his or her job performance will be rated.

Constant monitoring, feedback, and coaching are the next steps. Ensuring the employee knows what he or she is doing well and what is not being done well in a more informal manner will allow for a more productive employee.

Next, is the formal performance evaluation process. Choosing the criteria, rating scale, and source of the evaluation are steps we have already discussed. The next step is to work with the employee to develop improvement plans (if necessary) and offer any rewards as a result of excellent performance. The process then begins again, setting new goals with the employee.

Training Managers and Employees

As HR professionals, we know the importance of performance evaluation systems in developing employees, but this may not always be apparent to the managers we work with daily. It is the job of the HR professional to help educate managers and employees on the standards for completing performance evaluation forms, as well as train them on how to complete the necessary documents (criteria and ratings), how to develop improvement plans when necessary, and how to deliver the performance appraisal interview.

Employee Feedback

This video gives excellent tips on providing feedback to employees during the performance appraisal process.

First, after you have developed the new performance appraisal system (or adjusted an old one), consider offering training on how to effectively use it. The training, if required, can later save time and make the process more valuable. What we want to avoid is making it seem as if the performance appraisal process is “just one more thing” for managers to do. Show the value of the system in your training or, better yet, involve managers in developing the process to begin with.

Set standards should be developed for managers filling out the performance ratings and criteria. The advantage of this is the accuracy of data and limiting possible bias. Consider these “ground rules” to ensure that information is similar no matter which manager is writing the evaluation:

• Use only factual information and avoid opinion or perception.
• For each section, comments should be at least two sentences in length, and examples of employee behaviour should be provided.
• Reviews must be complete and shared with the employee before the deadline.
• Make messages clear and direct.
• Focus on observable behaviours.

Once your managers are trained, understand how to fill out the forms, and are comfortable with the ground rules associated with the process, we can coach them on how to prepare for performance evaluations. For example, here are the steps you may want to discuss with your managers who provide performance evaluations:

1. Review the employee’s last performance evaluation. Note goals from the previous evaluation period.
2. Review the employee’s file and speak with other managers who interface with this person. In other words, gather data about performance.
3. Fill out the necessary forms for this employee’s appraisal. Note which areas you want to address with the employee in the appraisal interview.
4. If your organization bases pay increases on the performance evaluation, know the pay increase you are able to offer the employee.
5. Write any improvement plans as necessary.
6. Schedule a time and date with the employee.

Most people feel nervous about giving and receiving performance evaluations. One way to limit this is to show the employee the written evaluation before the interview so the employee knows what to expect. To keep it a two-way conversation, many organizations have the employee fill out the same evaluation, and answers from the employee and manager are compared and discussed in the interview. When the manager meets with the employee to discuss the performance evaluation, the manager should be clear, direct, and to the point about strengths and weaknesses. The manager should also discuss goals for the upcoming period, as well as any pay increases or improvement plans as a result of the evaluation. The manager should also be prepared for questions, concerns, and reasons for the employee not being able to meet performance standards.

Improvement plans should not be punitive, rather the goal of an improvement plan should be to help the employee succeed.  Coaching and development should occur throughout the employee’s tenure. The employee should know before the performance evaluation whether expectations are or are not being met. This way, the introduction of an improvement plan is not a surprise. There are six main components to an employee improvement plan:

1. Define the problem
2. Discuss the behaviours that should be modified, based on the problem.
3. List specific strategies to modify the behaviour.
4. Develop long- and short-term goals.
5. Define a reasonable time line for improvements.
6. Schedule “check-in” dates to discuss the improvement plan.

An employee improvement plan works best if it is written with the employee to obtain maximum buy-in. Once you have developed the process and your managers are comfortable with it, the process must be managed.

Organizing the Performance Appraisal Process

While it will be up to the individual manager to give performance appraisals to employees, it will be up to the HR professional to develop the process and to manage the process. Here are some aspects to consider to  manage the process effectively:

• Provide each manager with a job description for each employee. The job description should highlight the expectations of each job title and provide a sound basis for review.
• Provide each manager with necessary documents, such as the criteria and rating sheets for each job description.
• Give the manager instructions and ground rules for filling out the documents.
• Work with the manager on pay increases for each employee, if your organization has decided to tie performance evaluations with pay increases. Provide the employee’s manager with their pay increase budget (total) and target percentage increase for each range of performance ratings.
• If necessary, provide coaching assistance on the development of objectives and improvement plans.
• Give time lines to the manager for each performance review he or she is responsible for writing.

Most HR professionals will keep a spreadsheet or other documents that lists all employees, their manager, and time-lines for completion of performance evaluations. This makes it easier to keep track of when performance evaluations should be given.

Of course, the above process assumes the organization is not using software to manage performance evaluations. Numerous types of software are available that allow the HR professional to manage key job responsibilities and goals for every employee in the organization. This software tracks progress on those goals and allows the manager to enter notes (critical incidents files) online. The software can track 360 reviews and send e-mail reminders when it is time for an employee or manager to complete evaluations. This type of software can allow for a smoother, more streamlined process. Of course, as with any new system, it can be time-consuming to set up and to train managers and employees on how to use the system. However, many organizations find the initial time to set up software or web-based performance evaluation systems well worth the easier recording and tracking of performance goals.

No matter how the system is managed, it must be managed and continually developed to meet the ultimate goal—continuing development of employees.

“Completing and Conducting the Appraisal” from Human Resources Management – 2nd Ontario Edition by Elizabeth Cameron is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.