Overview – Performance appraisals

Performance appraisals (or employee appraisals) are an essential tool for managing performance. They provide clarity about what is required for success in a role as defined by the ‘what’ (KPIs and objectives) and the ‘how’ (behaviours). They enable leaders to track employees’ performance and identify career development opportunities during regularly held, one-to-one discussions.

Performance appraisals are also a valuable communication tactic enabling leaders to:
Give employees a line of sight between their objectives and those of the organisation.
Embed the organisation’s values system by articulating what those values mean in the context of the employee’s job, and setting KPIs around that.
Reinforce positive behaviours and identify the support required to enable individuals to achieve their potential as well as their KPIs.

Grey TickThis tactic is useful for:


Communicating the standards and expectations that underpin high performance in employees’ roles.
Making the connection for employees between their goals and objectives, and those of the organisation.
Giving meaning to the organisation’s values system by setting KPIs for desired behaviours.
Recognising and rewarding positive behaviours to reinforce messages about what drives success in the organisation.

cloudyThings to consider:


 Determine the performance standards required for each process that the employee is responsible for and establish agreed KPIs to achieve those standards.
 Make the linkage between those KPIs and the organisation’s annual objectives, both in terms of numerical targets and flow chart.
 Publish a dashboard and run regular features on the intranet or in newsletters tracking the performance of the organisation’s key indicators. These may include the company share price and customer-satisfaction ratings. This helps leaders focus employee attention on areas where there are performance shortfalls or gaps.
 Discuss with the employee what the organisation’s values mean in the context of their role. Agree on desired behaviours and KPIs.
 Hold regular one-to-one discussions as part of the performance appraisal cycle. Provide frequent and timely feedback about individual progress against expectations and goals.

Tone BulbHelpful tip:


Create a simple flow chart to help employees visually connect their objectives to those of the organisation. Making this connection gives employees a greater sense of purpose because they have a line of sight between what they do and the organisation’s overarching purpose. A simple flow chart can also help employees establish the connection between their required behaviours and actions, and the organisation’s values system.
Category: Face to Face