> PERFORMANCE APPRAISAL SYSTEMS
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Converting a paper-based appraisal system to an online appraisal system |
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Improving and enhancing your existing appraisal system |
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Introducing the concept of social performance management |
An effective appraisal system promotes two-way feedback on an appraisee’s performance; as well as enabling appraisers to record their views on an appraisee’s performance, the appraisal system should also provide the appraisee with an opportunity to comment on their own performance. This ensures a more rounded performance appraisal because appraisers can consider their thoughts in the light of the appraisee’s comments.
The best appraisal systems ensure that performance appraisals are simple to introduce and administer. If the appraisal system is to be of real benefit, it’s essential that appraisers and appraisees understand their roles and how the appraisal system works. Focused appraisal training for both appraisers and appraisees should help to achieve this.
Some companies prefer an ‘appraisee led’ appraisal system which encourages appraisees to present their views on their performance prior to the appraiser commenting. Others prefer an ‘appraiser led’ appraisal system where the appraiser presents his/her views on the person’s performance before inviting the employee to comment.
Some appraisal systems incorporate a 360 degree feedback element. This is sometimes known as multi-rater feedback. 360 feedback helps an organisation to capture feedback about an individual from a range of people including his or her line manager, colleagues and direct reports.
The respondent group can be as wide or varied as you wish and the 360 feedback can cover every aspect of an employee’s performance. The 360 feedback data is then compared with the individual’s own assessment (self-perception) of their performance. In some 360 appraisals, external contacts, partners and other stakeholders may also be involved.
TIPS FOR CREATING AN EFFECTIVE APPRAISAL SYSTEM
Introducing a new appraisal system is a significant exercise for any organisation. An effective appraisal system leads to a more motivated and successful workforce. A bad one can have the opposite effect. Here are some tips to guide you when improving your present appraisal system or choosing a new appraisal system –
1. Be focused and clear at the outset - Make sure you know what you want to achieve from the new appraisal system. Is it just to do with assessing performance or do you want the new system to link to other HR processes like compensation, recruitment or succession planning? There's some excellent appraisal software available but making decisions like these at the outset ensures you get value for money and make the most of the system.
2. Make sure your senior management team is on board - If your senior managers don’t buy-in to the concept of a new appraisal system and get involved in its development, then it will, most likely, fall flat. They should also be seen to be part of the process as appraisers, and where appropriate, appraisees.
3. Consider strategy and objectives - Prior to introducing the new appraisal system, it’s essential that company strategic objectives are clear. These should provide the cornerstone from which divisional/departmental, team and in turn specific appraisee objectives are set.
An effective appraisal system ensures that appraisees understand clearly what they are expected to achieve in the coming year. Both the appraiser and the appraisee should be involved in this process. Appraisees are much more likely to be committed to achieving their objectives if they have played a part in the development process. Objectives should be Specific, Measurable, Achievable, Relevant and Time-based (SMART).
4. Clarify competencies - Without competencies (skills sets) it's difficult to achieve objectivity when the performance appraisal takes place. With a clearly defined set of competencies, appraisees can be assessed against criteria which actually relates to their job. Another consideration here is the rating scale; do you want to score appraisees on a scale or simply invite appraisers to comment on appraisee performance?
5. Decide who will take the reins - Be clear on who will lead the introduction of the new appraisal system. Don’t just lump it on HR. Involve people from other departments, both appraisers and appraisees if possible.
6. Run a pilot of the new appraisal system -Try running a pilot introduction of the new appraisal system prior to rolling it out fully. There will always be teething problems; it’s a lot easier to deal with these with a pilot group than having to make amendments to the appraisal system across the whole company.
7. Objectivity – The appraisal system should encourage objectivity and fairness. The appraisal form should provide appraisers with a platform to use fact so that their comments are backed up with real observable examples of good or poor performance.
8. Training for appraisers - Appraisers require a multitude of skills in order to do their job effectively and professionally during the performance appraisal. It’s essential that all appraisers receive comprehensive appraisal training. It’s just not fair to expect managers/appraisers to use the appraisal system effectively and behave professionally if they haven’t received guidance.
9. Briefings for appraisees - Some companies fail to see the importance of briefing appraisees on the new appraisal system. Appraisees need to know the part they have to play, how the system works (particularly if it’s an online appraisal system), the benefits they can gain from it and the timeframe. Don’t expect appraisees to be enthusiastic about their new appraisal system if they don’t know how to use it or why they are doing it.
