Performance Management and the Performance Appraisal

There is a common perception that organizations utilizing performance appraisals are doing so to identify employees no longer wanted or required within the organization.  As a result, the performance appraisal process is often a time that is very stressful for employees.  However, it is important for employees to know that performance appraisals and the performance management of an organization is not a disciplinary process.  Effective performance management has to be seen as a process that should be embraced, not feared.

Performance management is a critical component contributing to the success of an organization.  It is a process that sets out to establish a clear and common understanding of an organization’s goals and how these goals will be achieved.  The performance appraisal is a tool used by human resource (HR) departments allowing them to manage its employees.  It is a mechanism that increases the likelihood of achieving success.

The performance appraisal should not be threatening or adversarial.  It should not be seen by employees as a mechanism for discipline.  To have an effective performance management process, it is important this be clearly communicated to all employees prior to the actual appraisal.  Employees should view the performance appraisal process as an opportunity to discuss and acknowledge their contributions to an organization and how these contributions have contributed to successes realized.  It is an opportunity for individual employees to align their goals closer to that of the organization and should be seen as an enabler of both career advancement of the employee and success of the organization.

If used effectively in the performance management process, the performance appraisal will empower employees.  It will act as a catalyst for success.  People are motivated to perform well when they believe the work they are performing is meaningful and worthwhile.  Using performance appraisals to engage employees and establishing a direction for their work in line with that of the organization improves performance.

Many organizations make the mistake associating pay increases with their performance management process.  Pay is not a motivator for all employees.  In fact, pay can be seen as a de-motivator, especially if there is a perception pay levels are inequitable.  In general, employees feel their contribution is as valuable to the organization as any ones.  Conducting a performance appraisal to evaluate worthiness for pay increases will do nothing but contribute to the stress of employees.  If performance is the only mechanism to evaluate progress in an organization, many employees will have a tendency to focus on what they perceive as being important, rather than what the organization has identified as being important.  Focusing on money during the appraisal process interferes with what the employees hear.  Talks of money lessen understanding of feedback being given.

The performance management process and the performance appraisal should be kept simple.  Avoid the many formalities traditionally associated with performance appraisals.  Focus on being clear and concise.  Identify objectives that provide direction for the employee and enables reaching attainable goals.  This will contribute to the success of the organization.

It is true that a performance appraisal may identify problems with an employee’s performance.  This should not be seen as a negative thing nor should it be seen as a reason not to complete a performance appraisal.

There should be very few things revealed during the appraisal process that employees have not heard before.  Things uncovered at the time of the appraisal should never be a surprise to the employee or to the employer.  The performance management process itself should provide ongoing feedback throughout the year.  Feedback and improvement opportunities exist at all times.  These should be identified and utilized to ensure ongoing development and improvement of employees.

It is important that issues with performance be identified in a timely fashion.  This allows for both the employer and employee to determine what actions are required to address and mitigate the problem.  Lack of communication about organization expectations or misunderstandings of the task assigned may be resulting in poor performance.  For this reason, continual feedback throughout the year helps identify and correct any behaviour not in line with the goals of the organization.

It is obvious that providing employees with a clear understanding of what is expected of them in the organization and how their actions are an important factor contributing to the overall success.  For this reason, the performance management process that utilizes performance appraisals constructively will benefit all parties involved.

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