Managing in the new millennium: the performance

appraisal process.
By Buhler, Patricia M.
Publication: Supervision
Date: Tuesday, November 1 2005
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Performance appraisal is a critical human resource function. The performance of

individuals within the organization is modified and improved through the effective
utilization of the performance appraisal process. More companies are now using the
evaluation process for developmental functions. That is, the process can be
effectively used to identify strengths and weaknesses of employees so areas of
improvement can be targeted (and thereby improved). Training and development
can then be outlined with coaching and mentoring opportunities proposed. In
addition, the process can be used as input to the skills inventory (or skills bank) of
companies. As organizations evolve and human resource staffing needs change, a
skills inventory can provide essential information. As new skills are acquired by
employees and strengths identified (during the performance appraisal process), the
skills inventory is updated. Internal candidates can then be identified when new
positions are created or openings occur within the organization. Volumes have been
penned on delivering effective performance appraisals, developing successful
performance management systems, and training managers to write better
performance appraisals. The flip side of this process deserves equal time, though.
That is, the person receiving the appraisal must also understand the process and
understand his or her responsibilities to get the most out of the evaluation process.

Since virtually everyone in the organization is evaluated, the process should be of

interest to people at all levels within the organization. Even the firm's CEO should
be evaluated--though this function is usually performed by the board of directors.
Regardless of organizational level, effectively using the performance appraisal
process can provide benefits to everyone. The trend today is toward the
implementation of 360-degree appraisal. This involves an evaluation of a full circle
of raters. This now is likely to include the employee himself or herself, the direct
manager, peers, customers, or anyone else who might have knowledge of the
individual's performance. In the case of managers or supervisors, this might also
include subordinate evaluations. Collaborative appraisal models have grown in
popularity. These encourage buy-in from both sides and provide a more informative
feedback process with more than one perspective (traditionally, just the
manager's). A self-appraisal is a systematic process providing the employee with an
opportunity to appraise his or her own work. It opens the door for discussions that
may enlighten the manager to another perspective. This is especially important with
knowledge workers in an information age where the manager may not always know
everything that employees do.

As the use of self-appraisals has increased, the opportunity for each employee to
offer valuable input to the process has also grown. This opportunity, however, has
come with increased responsibility. That is, to take full advantage of this input, the
employee must carefully do his or her homework and truly understand the process
and all its components. Becoming Familiar with the Appraisal Form and the Process
Employees should in no way be intimidated by their increased involvement in the
process. Administering performance appraisals consistently ranks at the top of the
list of the most disliked managerial tasks. An employee who is responsibly involved
in the process with valuable contributions can then be a welcome relief to the
manager. It is important that each employee be familiar first with the appraisal form
itself. Many organizations have customized forms. Larger firms may even customize
the form from department to department. These forms should be received well in
advance of the actual evaluation date so employees can become familiar with them.
In addition to the form itself, the employee must possess a thorough knowledge of
the job description and the standards of performance. The job description should be
provided to each employee when hired. This document outlines the key
responsibilities and tasks that the employee is required to perform on the job.
Often, these responsibilities will be listed in descending order of the time expected
to be spent in each of these tasks.

An effective performance appraisal will then reflect how well the employee is
performing these specific tasks. More progressive organizations today are replacing
the use of job responsibilities and specific job tasks with competencies. These tend
to be broader and less likely to become obsolete as quickly. Employees should be
equally knowledgeable about the competencies required for them to perform
successfully on the job. The standards of performance are perhaps the most critical
input for performance appraisals. These are the specific measures of performance
against which an employee will be evaluated. These measures may be output or
behavioral. That is, they may specify what is to be done or how it is to be done. It is
essential that every employee knows and fully understands these standards of
performance against which they will be appraised. Without full knowledge of these
measures, employees cannot be expected to perform at those levels. The
performance criteria must, however, be job-related and be within the employee's
control. They cannot be held accountable for performance that is not within their
control.

Generally, employees should receive a copy of the evaluation form itself a few
weeks prior to the appraisal interview. This should be completed as objectively as
possible. While these self-appraisals tend to be less objective and more positive
than the supervisor's appraisal, this is always a good starting point for discussions
during the interview. For this reason, employees must be very specific when
completing each item. It is not sufficient to circle a rating of 4 out of 5 for quality of
work. Specific examples should be provided with dates and details. Employees
should have a clear understanding of how their performance appraisal process is
aligned with their compensation (including any bonuses or merit pay increases) and
promotion opportunities. Finally, it is important that employees know what their
options are if they disagree with the evaluation. In most cases, organizations
provide employees the option of submitting a rebuttal to document their
disagreement. This should be placed in the employee's personnel file with the
performance appraisal.

Employees should be provided sufficient time to complete their self-evaluations It is

important to solicit this necessary time since the astute employee must carefully
think through what he or she most wants the manager to know. It is more than
reasonable to ask for 10-14 days to prepare. Documentation is an essential part of
preparation. Just as it is recommended that managers maintain critical incident
diaries to use for writing performance appraisals, employees should keep their own.
That is, each time the employee does something especially noteworthy or
something that presented a problem, a paragraph or two should be written
summarizing this incident. These entries can then be used as specific examples
when completing the appraisal form. The employee should have a prepared copy of
the appraisal form for the manager (and another for himself or herself) that is
brought to the appraisal interview. This evaluation should be grammatically correct
and free from spelling errors. A professional presentation will go a long way in
ensuring that the employee is truly "heard" and taken seriously. This also means
that the evaluation is not used as a venting mechanism, but is kept professional and
is focused on behaviors.

The performance appraisal interview itself is an active process. That is, the
employee should not remain passive. Instead, he or she should expect to provide
input and talk at least fifty percent of the time. This is not a one-way
communication process. The employee's remarks, however, should be carefully
chosen. The environment is also important. To be effective, the employee should
ensure that the manager has selected a quiet meeting place free from interruptions.
It is critical that issues to be discussed during the interview be prioritized to ensure
that those most important topics are covered first. The employee might even think
of this appraisal interview as a meeting with an agenda where topics are outlined
and times are allotted to each. While the manager generally has control of the
interview, the employee can contribute and help to steer the discussion in the
desired direction. Topping the list might be a thank you for the opportunities
afforded the employee by the company and the manager. This serves to start on a
positive note. A list of accomplishments from the review period should be included.
While the past performance of the employee is evaluated, the most effective
appraisals are oriented more toward the future. The focus of a developmental
appraisal should be on how shortcomings can be improved and what skills should be
developed going forward. This is also an opportunity to jointly set goals for the
upcoming year. Employees should be proactive in bringing their suggestions to the
table. This is a good time for the employee to think about the portfolio of skills that
they want to develop. These should, however, be tied to the strategic objectives of
the firm and the department.

By aligning the employee's personal development and skill acquisition with the
achievement of organizational objectives, the manager will more clearly recognize
their importance and be more likely to assist. It is essential for the employee to gain
commitment from the manager. This is a partnership between the manager and the
employee to improve the employee's performance--and ultimately, the
organization's performance. It is always a good tactic to agree on a follow-up
meeting time and place. The action plan (with goals) discussed in the appraisal
interview can then be re-visited and progress monitored to ensure the employee is
on track. Unfortunately, the performance appraisal process is not used as
effectively if it is not a two-way process with employees actively involved. Training
managers to better provide feedback is helpful, but employees must step up to the
plate to take responsibility for reaping the benefits of a process designed
specifically to improve their performance--and the overall performance of the
organization.

Patricia M. Buhler, D. B. A