How to Create a Performance Appraisal System
At their best, performance appraisal systems can be powerful tools for improving productivity and morale. At their worst, they can be inconvenient and frustrating, and even interfere with employee performance. The difference between successful and unsuccessful performance appraisal systems lies in the degree to which both employers and employees are engaged in the process. Their engagement can depend on having a set of questions and criteria that are relevant to assessing and improving job performance, and also on having a company culture where employees are encouraged to thrive.
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Instructions
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Design a list of questions that the manager will answer about the employee. Base these questions on general criteria such as knowledge, effectiveness, motivation, and improvement, and also on criteria unique to your company. For example, if you run a business that offers technical support to nonprofit organizations, evaluate whether the employee's support genuinely helps clients to achieve their objectives.
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Design a list of questions for the employee to answer about himself. Ask whether he thinks he is fulfilling the responsibilities outlined in his job description; ask whether the job is helping him to achieve his personal goals. Evaluating this link between professional and personal objectives will help you to engage and motivate your employees.
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Decide whether your performance appraisal system will be a rewards-based system that offers incentives such as raises for positive evaluations. It can be successful when it spurs employees to improve their performance in hope of getting a raise. But a rewards-based appraisal can interfere with improving performance if employees hesitate to be honest about their strengths because they believe it will interfere with the possibility of a raise.
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Schedule meetings between managers and employees for the purpose of reviewing performance appraisals. Encourage managers to use these meetings as opportunities to improve employee performances and bolster employee morale rather than simply critiquing their staff.
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