The Basic Three-Step Process
Appraisal systems vary both by organization and by the level of the employee being evaluated, but as you can see in Figure 7.8 "How to Do a Performance Appraisal", it's generally a three-step process:
- Before managers can measure performance, they must set goals and performance expectations and specify the criteria (such as quality of work, quantity of work, dependability, initiative) that they'll use to measure performance.
- At the end of a specified time period, managers complete written evaluations that rate employee performance according to the predetermined criteria.
- Managers then meet with each employee to discuss the evaluation. Jointly, they suggest ways in which the employee can improve performance, which might include further training and development.
Figure 7.8 How to Do a Performance Appraisal
It sounds fairly simple, but why do so many managers report that, except
for firing people, giving performance appraisals is their least
To get some perspective on this question, we'll look at performance
appraisals from both sides, explaining the benefits and identifying
potential problems with some of the most common practices.
Among other benefits, formal appraisals provide the following:
- An opportunity for managers and employees to discuss an employee's performance and to set future goals and performance expectations
- A chance to identify and discuss appropriate training and career-development opportunities for an employee
- Formal documentation of the evaluation that can be used for salary, promotion, demotion, or dismissal purposes