Annual Performance Appraisal

Looking forward to your employee performance reviews?

Performance review – What’s in a name?

Let’s be honest, we’re always evaluating in our heads or out loud. But employee performance reviews differ from those spontaneous evaluations. The annual review is formal, periodical, systematical and as objective as possible. Or, at least that’s what they’re supposed to be. Yeay, It’s time for my evaluation!

Surveys generally show that most people think the performance appraisal is a good idea. But in practice, most managers only carry out employee performance reviews when they are obliged to. Yeay, my evaluation is spot on! Research shows, next to the low commitment to give/receive the appraisals, that they aren’t always accurately assessing performance. Lots of things can go wrong, in all aspects of the process. The assessor makes mistakes, the assessment is not measuring the performance, …

Ok, we think you’ve got the point now.

We’re not a huge fan of the traditional annual performance review. But hey, god invented change! What habits can we develop to create an effective, year-round appraisal culture in your organization? Below, you’ll see some beginner, intermediate and expert level habits to evaluate performance more often and more effective. When you practice these habits, don’t forget there is failure before success. It takes 6 à 7 attempts to create a new habit!

A final note

According to Cleveland, there are 4 big purposes for performance management.

  • First, you have the “between persons” purpose, for determining pay and promotions, evaluating overall performance of personnel…
  • Second, you have the “within persons” purpose, wherein employees receive feedback about the individual performance, strengths and pitfalls, potential need for training…
  • Third, there is the “strategical” purpose, where the performance management is directed towards the overall ambition of the company.
  • Last, you have the “research” purpose, a check if a training program had effect.

Why are we telling you this? If you want a organizational culture where evaluations are effective and not engagement-killers, ask yourself why. Decide for yourself what the exact purpose of the evaluation is. Don’t just do it because you’re obligated to do so.

Performance management (PM) is viewed as more broken than ever. Most managers and employees see it as a burdensome activity that is of little value. So where is the disconnect? The problem is that formal PM systems have reduced PM to intermittent steps and processes that are disconnected from day-to-day work and behaviors that actually drive performance: communicating ongoing expectations, providing informal feedback in real time, and developing employees through experience. But after that, they propose a 5-step PM reform process that helps organizations achieve this change. If you’re interested, you can read the full article HERE.

Visit the feedback edition of the Habit Magazine for more.

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