Contents
Performance Appraisal Basics
The Performance Appraisal Form
The Performance Appraisal Process
1. Plan: Job Goals and Expectations
2. Perform: Work to Meet Goals
3. Evaluate: Assess Performance
4. Discuss: Meet to Review the Performance Appraisal Form
5. Finalize: Complete Appraisal Forms and Implement Changes
Tips for Successful Performance Appraisal Meetings
Performance Appraisals and the Law
How to Establish a Performance Appraisal Process
Performance Appraisal Language
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The Performance Appraisal Form
Each company structures its performance appraisal forms somewhat differently, based on two major factors:
- The format that best suits the company’s culture
- The content that best serves the company’s needs
For example, some companies might have one brief form that requires input only from the employee’s direct supervisor. Other companies with more formal processes might conduct 360-degree appraisals (also called full circle appraisals) in which one form contains input from many sources, including supervisors, direct reports (the employee’s direct subordinates), vendors, and clients.
The most important aspects of the performance appraisal form are the form’s components, feedback sources, and method of evaluation.
The Typical Form Components
Performance appraisal forms contain three main parts:
- Background information
- Performance evaluation
- Summary
Background Information
The first section of a performance appraisal form covers basic information needed for documentation and reference:
- Instructions
- Name
- Job title
- Date of interview
- Date of hire
- Supervisor’s name and title
- Signatures (employee and supervisor)
Performance Evaluation
The second section makes up the bulk of the form. Here, the appraiser evaluates employee performance across six main categories to pinpoint strengths and weakness, which are often called development needs. The six categories are:
- Responsibilities: The employee’s main objectives. These may be ongoing duties, such as “To manage the office and answer all incoming phone calls,“ or tasks from specific assignments, such as “To manage the recruiting and hiring of two new full-time employees.”
- Competencies: The skills or abilities that the employee needs in order to perform the job, such as presentation skills or project management.
- Values: Ideas that the company believes are crucial to its success, such as integrity, quality, and safety.
- Achievements: The major goals that the employee met, or failed to meet, during the performance period (the time between performance appraisals).
- Areas for improvement and growth: The skills that an employee must acquire or improve in order to enhance work performance or earn a promotion.
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Development plan: A plan that details how the employee can attain the skills recommended in “areas for improvement and growth”—for example, by attending training classes. Many companies employ the S.M.A.R.T. approach in writing the development plan, which requires that development plans be:
- Specific: Use clear language to describe goals.
- Measurable: Include specific milestones for each goal that the supervisor can assess.
- Action-oriented: Focus on specific actions for each goal, such as launch, write, or learn.
- Realistic: Define only those goals that are attainable within the next performance period.
- Time-bound: Define a timeframe in which the employee should meet the goals or milestones.
Summary
The summary contains a brief review of the entire appraisal, which allows readers to grasp the appraisal’s main conclusions quickly. It also forces the appraiser to sum up his or her thoughts about the employee’s performance, which helps ensure consistency throughout the entire form.
Feedback Sources
The term feedback sources refers to the people whose opinions about an employee’s performance appear on the appraisal form. Most companies use just one feedback source, though some prefer to use multiple sources.
- One source: The most direct and efficient way to get performance feedback, but can result in a rather narrow appraisal. Usually the feedback source is the employee’s immediate supervisor.
- Multiple sources: A more time-consuming and costly method, but also usually results in the most comprehensive and accurate feedback.
The Six Types of Feedback Sources
Feedback sources can come from any of the following six positions in a company:
- Superior: Supervisors who have closely observed an employee’s performance can provide the most authoritative feedback on the employee’s work.
- Self: The employee expresses his or her view on key accomplishments, strengths and weaknesses, and future goals. It’s helpful to compare the employee’s own views to feedback from other sources to identify, and later address, any sharp discrepancies.
- Peer: With the increasing prevalence of teams in the workplace, peers are often in a good position to provide feedback on an employee’s performance, especially on specific tasks. Peer feedback also allows coworkers to air grievances in a nonthreatening forum, which can boost cooperation and productivity.
- Upward (or subordinate): Upward feedback gives subordinates a chance to critique their supervisors, most often with some degree of anonymity. This often provides insightful and constructive feedback to supervisors that they might otherwise never hear. To preserve privacy, upward feedback is most effective for supervisors with three or more direct reports.
- External party: Like upward feedback, input from external parties, such as customers or vendors, can provide a unique perspective that might otherwise never come to light. External parties are especially well equipped to provide objective feedback since they’re not affected by the pressures that might affect company employees.
- Performance records: In addition to obtaining feedback from people, some supervisors also consult company records when completing the appraisal form. Examples include budgets, attendance records, and safety reports.
Methods of Evaluation
Appraisal forms typically use one (or more) of three possible methods to evaluate employee performance: narrative essays, numbered scales, or descriptive scales.
Narrative Essays
A series of brief paragraphs in which appraisers provide detailed assessments of employee performance in a particular category, such as responsibilities or values.
Numbered Scales
A quantitative method in which the appraiser assigns a numeric value to the employee’s performance in a specific aspect of a larger category. The assessment usually consists of a five-point scale. For example, for the “Competencies” category, the appraiser may be asked to rank the employee’s computer skills on a scale of 1–5 (with 1 being best and 5 being worst, or vice versa).
Descriptive Scales
A semi-quantitative method that requires the appraiser to rank the employee’s performance on a scale that includes descriptions. This method can be used with or without numeric values. It may feature the same descriptive scale throughout the entire form or contain a different scale for each evaluated area. For example, a descriptive scale used to evaluate an employee’s knowledge of a company’s products might look like this:
- Extremely knowledgeable about company products
- Very knowledgeable about company products
- Knowledgeable about company products
- Somewhat knowledgeable about company products
- Not knowledgeable about company products
When using descriptive scales, avoid vague language such as “good” or “bad.” The descriptions accompanying the scales should be precise and concrete.
Which Method Should You Use?
Narrative essays and scales provide different types of feedback best suited for different types of organizations:
- Narrative essays: Offer personalized feedback with specific examples.
- Scales: Provide concrete measures that enable supervisors to compare employee performance across teams or entire divisions.
The best solution for your organization may be to use a combination of these methods.
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