Getting the Most from Appraisals

Does your organisation have one of those annual 'occasions' that few look forward to: the annual appraisal or performance review? How do you look forward to it? I wonder how people talk about it before and after?

Are appraisals worth doing? If done properly ? yes. If done poorly ? no!!!

Why have appraisals? When carried out properly they can achieve a number of benefits for all parties. The organisation, the manager and the appraisee can:

• establish current levels of performance, and the organisation benchmark across departments or functions,
• identify ways of improving performance, individually and collectively,
• set clear goals for the future,
• assess potential and desire for development,
• establish the appropriate means of motivation,
• improve communication throughout.

Some of the typical problems that happen to lead to poor appraisals are:

- It is an annual process

- Nothing has happened with the outcome of the last one

- There is no on-going feedback or review of progress

- Things can change in between, whether it is the manager or the job!

- The process is not taken seriously from the top

- The organisational culture views the whole process as a chore to be endured

- Insufficient preparation time or effort

- The 'recency' effect where only the previous 6-8 weeks are reviewed

- Too much focus on the negatives or problems of the year

- It is too subjective and too much is based on opinion

- It is too time consuming and interferes with day-to-day work

- Appraisals are just part of the salary negotiation

When you look at what can be achieved and compare the benefits with the reasons why they often fail to deliver, you can see that a lot of this is due to the attitude of the organisation and the line managers, starting from the top!

Think about what can happen when appraisals are handled in a constructive manner. They allow the organisation and individuals to:

• learn from the past to improve the future
• build on successes and strengths for the future
• recognise individuals' strengths and abilities
• identify areas to develop skills and knowledge
• value individual contribution
• improve working relationships through clear communication

This does not mean that managers should "duck" difficult issues or things they are not happy with. However, there should be no surprises at an appraisal. Feedback on performance should be given at the time ? not stored up for the appraisal!!! As a manager, if you have concerns, deal with them. Most people want to be given feedback on their performance regularly (and that does not mean annually!!) ? even if it is to be told they have to improve.

One challenge in many organisations is to use the current system effectively. Too many people get caught up in worrying about the paperwork ? whether designing a new set or using the existing. I recall working with one client in developing a good, thorough, process only to be questioned by some directors from their Scandinavian partner about why we were going to so much trouble. They held up a blank sheet of paper and explained that was their idea of all they needed for a productive appraisal!!! They are right. The reality is that a productive appraisal owes more to the quality of the communication between the people involved than to the paperwork!

Should appraisals involve salary reviews? This is a quandary with no straightforward answer. When they do, there is a risk that the amount of the rise becomes the absolute focus of the discussion and can even be a negotiation. If they don't, how objective is the salary award when it is given? My own view is that the salary review and appraisal can be linked, yet held very separately. There is no reason for not holding the appraisal, setting some goals and even specifying some behavioural change and then using this as a part of the salary discussion. Although there is a risk in having the appraisal and salary combined ? it can work, regardless of the gap. After all, shouldn't salary and raises reflect performance rather than just opinion? If appraisals are carried out well and constructively there should be a fit between the two.

Everyone involved has to take their share of responsibility for making appraisals work. While the tips below will not guarantee success, they will help you to get more from the process, whatever your role.

If you are the 'appraiser'

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