Human resources management

Directors Briefing

Performance
appraisals
Maintaining employees focus and
motivation is essential if they are to
make a full contribution to your business.
Performance appraisals actively involve
employees in understanding what is expected
of them. By setting agreed objectives and
later reviewing the results each employee is
responsible for his or her own performance.

previous period, you create the motivation

to achieve even more.
Actually saying well done or thank
you may seem unimportant to you, but
acknowledgements like these are extremely
important to the employee.
1.3 By identifying and correcting problems,
you improve the employees productivity.

This briefing outlines:

The benefits of using performance
appraisals.
What to include in the self-assessment
form you give to employees.
How to prepare for the appraisal meeting.
How to conduct, and follow up, the
meeting.

An appraisal provides an insight into the

work being done and the employees who
are doing it.
1.4 By asking for feedback and ideas, you find
out how to improve your business.
You can receive useful feedback on your
performance as a manager, including your

1 Benefits of appraisals
In the rush of everyday work it can be difficult
to manage all your employees well.
An appraisal is a regular opportunity to identify
and deal with all the most important
issues facing the employee.
1.1 By clarifying the employees key
objectives, you make it possible for the
employee to achieve or exceed them.
You use each appraisal to set new
objectives with the employee.
You can use a personal development plan
approach to increase the desire of the
employee to improve.
1.2 By recognising achievements during the
England

Reviewed 01/12/07

Directors Briefing
management of other employees.
Appraisals show your employees you care
about their problems, aspirations and views.
Done well, appraisals boost employees'
confidence and help them focus on their
objectives.

2
In which areas do you think you could
improve your performance?
2.2 How would you rate your own skills?
What are your strengths and weaknesses?
Are you well organised?
Can you work on your own initiative?

2 Self-assessment questionnaire

2.3 Are you a team worker?

Let the employee know well in advance when

the performance appraisal will be. Ask the
employee to complete a self-assessment
questionnaire for you as part of the preparation.

How well do you get on with others in your

team?
How well do you get on with others in the
company?

Different levels and types of employee may

need different questionnaires. But all the
questionnaires should include open questions
such as the ones below.

2.4 How is your attitude to work?

2.1 How well have you performed since your

last review?
What were your key objectives (see 5) and
did you achieve them?
What problems did you encounter?
What did you do really well?

What do you find most or least interesting

in your job?
Do you have any interests or abilities which
could be better used?
How flexible are you?
How punctual, reliable and committed are
you?
2.5 What do you think your key objectives for
the next six months should be?

Appraising under-performers

What help and training do you need?

Carrying out an appraisal of an employee who

is under-performing requires particular skill.

3 Managers preparation

Tackle problems as and when they arise,

rather than waiting for an appraisal.
The appraisal is then a review of known
problem areas.
Confirm what the minimum targets and
standards are that the employee should
be reaching. These will have been set at
the previous appraisal, or earlier.
Compare the employees performance
with these targets and standards, which
must be measurable.
Provide specific examples and evidence
of under-performance.
Focusing on performance makes heavy
criticism (if necessary) much easier, and
helps you avoid personality issues.
Be supportive, constructive and fair.
Look at the problems from the
employees perspective.
If you are in a disciplinary situation,
follow the correct disciplinary
procedures to avoid possible litigation
by the employee.
Continual monitoring of the employee
after the appraisal is crucial, to secure
the improvements that were agreed.

Prepare a plan for the appraisal meeting.

3.1 Review the employees completed selfassessment questionnaire.
Identify the important issues and focus the
appraisal on them.
3.2 Review the performance appraisal report
which was written following the previous
appraisal (see 6).
Note which objectives have and have
not been achieved.
3.3 Think about the big picture, as well as
operational issues.
For example, the career or training
opportunities that are open to the
employee.
3.4 Work out your objectives for the appraisal.
For example, if there is no opportunity
for promotion, your goal may be to
maintain the employees commitment and
motivation.

An appraisal
system is
evidence that you
are managing
performance,
and is one of the
requirements to
gain Investors in
People status.

Some managers
come to an
appraisal with a
wish list of goals
they would like
achieved. They
risk setting up the
employee to fail.
Peter Neall,
Neall Scott
Partnership
training
consultants

Directors Briefing
Deal with any recent one-off problems
before the appraisal.
3.5 Have examples (or other evidence) ready
to back up the points you wish to make.
This shows the employee that your concern
is a reasonable one.
3.6 Write down your meeting plan for the
appraisal (see 4).
The less you have worked directly with the
employee, the more effort you need to put
into the preparation stage.
For example, you may need to seek
feedback from other people.

4 The appraisal meeting

Appraisals should allow employee and manager
to express their views freely and frankly. The
eight steps outlined below should help you
achieve this.
4.1 Explain the agenda (your plan) for the
meeting, and what you hope to achieve.
Put the employee at his or her ease.
Start on a positive note by praising the
employees work in general.
4.2 Ask the employee to talk you through the
self-assessment (see 2), focusing on the
areas which you have identified as being
the most important typically the key
objectives.
Employees can be over-critical of their
own performance. They may also identify
problems you were not even aware of.
This makes your role much easier. You can
focus on helping the employee to find the
solutions, rather than having to point out all
the weaknesses and problems.
4.3 Add your own views about the employees
performance.
Take every opportunity to acknowledge
achievements and hard work.
Be clear about which areas of performance
need improvement.
4.4 Discuss the problem areas and come up
with solutions together.
Ask the employee to explain why the
problem has occurred. Then ask the
employee to suggest a solution, which
may match your own ideas.

3
Look beyond the symptoms to the root
of the problem. For example, a problem
might stem from lack of confidence, lack of
training, or something unrelated to work.
4.5 Review the employees long-term career
plans, if these have changed.

When offering
employees
promotion,
training or other
opportunities,
be aware of the
discrimination
pitfalls.

This may unearth new problems or

opportunities.
For example, you may realise that the
employee is looking for another job in
which case you need to either persuade
him or her to stay, or make plans for what
will happen when the employee goes.
4.6 Consider the employees training needs.
4.7 Discuss and agree a new set of key
objectives for the next period (see 5).
Decide when the next appraisal or
interim meeting will be.
4.8 Discuss any ideas for improving the
effectiveness of the performance
appraisal process.
The employee may feel that the process
has been unfair in some way.
Aim to spend twice as much time listening to
the employee as you do talking.
Much of the skill of doing effective appraisals
lies in your questioning technique. If you
ask open questions (eg what do you think
about...?), and show genuine interest, most
employees will be happy to talk at length.

5 Setting key objectives

The whole appraisal cycle is built around
setting, reviewing and then re-setting key
objectives.
5.1 Each objective should be SMART
specific, measurable, agreed, realistic and
time-limited.
Each objective must be in an area over
which the employee has control.
Give each objective a deadline.
A clear target allows you to measure
whether the employee is making the
progress you expect.
To be a good salesman fails the SMART
test in every way. But, to add at least five
new customers by the end of the year
might be a suitable objective.

Once an appraisal
is scheduled, stick
to the timetable.
The appraisal may
not seem urgent
to you, but to the
employee it is a
very important
matter.
Simon Macaulay,
Anglo Felt
Industries

Directors Briefing
5.2 Many elements of the job may already be
covered by set standards .
For example:
In an office, you may have standards for
answering the phone (within four rings) or
handling sales queries (within 24 hours).
For many blue collar employees, much of
the appraisal will be focused on reviewing
the achievement of standards.
For example, the driver of a delivery van
might be reviewed primarily in terms of
reliability, promptness and breakages.
All the general points about appraisals
still apply. A van driver needs support and
motivation and has potentially valuable
feedback and ideas like every employee.
5.3 Involve the employee in setting objectives.
Otherwise there is a danger the objectives
will be unattainable, or simply ignored.

6 Following up
6.1 Immediately after the meeting, write up the
performance appraisal report.
This summarises what has been discussed
and agreed, including:
The objectives set for the next period.
Any commitments you or the employee
may have made.
For example, you might have offered to
train the employee in a particular task.
The report may include numerical scores for
various categories of activity.
6.2 Give the employee his or her own copy.
There should be no surprises. Check that
the employee agrees that what you have
said is true and fair.

4
Monitor the employees progress towards
the objectives that have been set.
Keep using the supportive, collaborative
approach that you used for the appraisal.

7 Who appraises who, when?

7.1 It is common practice for employees to be
reviewed by their line managers.
If your appraisal system is ineffective, it
is probably due to the poor skills of the
managers conducting the appraisals.
Train your managers in appraisal skills.
Train your employees in appraisee skills,
so that they can contribute effectively.
7.2 Bottom-up appraisal is a more
comprehensive approach.
Each employee is appraised by
subordinates, as well as a line manager.
7.3 A 360-degree appraisal is more thorough
still, taking in feedback from subordinates,
colleagues, superiors, and customers.
One advantage of this approach is that the
appraisal is less vulnerable to bias.
A disadvantage is the sheer amount of time
the process consumes.
7.4 The optimum frequency of appraisals
depends entirely on the circumstances.
At the very least, they should be once a
year.
If you are trying to motivate a team and
drive the business forward, quarterly
appraisals may be more appropriate.
An employee who is new, or has moved
into a new role, may initially need more
frequent appraisals.
Another employee, who has done a routine
job for several years, may only need one
appraisal a year.

6.3 Give a copy to your own line manager or

another third party (such as the personnel
manager) to review.
If several managers in your business
conduct appraisals, this is a vital check for
fairness and consistency.
6.4 There should be an appeals procedure in
place, for employees who feel that any part
of the appraisal process has been unfair.
6.5 Performance management of the employee
is an ongoing process for you.
Published by BHP Information Solutions Ltd, Althorp House, 4-6 Althorp Road, London SW17 7ED
Tel: 020 8672 6844, www.bhpinfosolutions.co.uk

BHP Information
Solutions Ltd 2008.
ISSN 1369-1996. All
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