We prefer to discuss Performance Management, rather than Performance Appraisal, for a number of reasons.  Firstly, the Appraisal step, while usually necessary for distributing merit increases, is generally not motivating at all; it has little to no effect on performance in general.  Secondly, the most important part of Performance Management is often the first step:  employees and their supervisors agreeing on a performance standard, and measurement system, for the coming year (or period).  Finally, if performance is truly being managed, not just appraised, the final appraisal meeting is anti-climatic:  if the employee has been given a clear performance standard and has received regular feedback and coaching, there will be few surprises at the annual review, and hence few disappointments or conflicts.  This comes as a pleasant surprise to many seasoned managers.

We view Performance Management as an on-going process with three distinct parts, as shown below:

Our consultants have worked with clients on all three parts of the cycle.  In our experience, emphasizing performance planning, and helping managers develop good coaching skills, are far more important than the details of the form used in the appraisal process, yet this is often where much effort is spent.  Email us to see if our consultants can help improve your system.