Employee Performance Appraisal An Ideal System

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Employee Performance Appraisal: An Ideal System


Summary

In America's top organizations, employee performance appraisal stands out as a crucial management tool. Effectively used, it's the most impactful method to align every employee's energy with the company's strategic goals, influencing careers immensely.

Importance of Performance Appraisal

In well-admired organizations, performance appraisal isn't just a necessity?"it's a dynamic tool. When used effectively, it channels employee energy towards achieving strategic goals, aligning with the company’s mission, vision, and values. It answers key questions: "What do you expect of me?" and "How am I doing?"

The Myth of a Unique System

Many believe their organization needs a unique appraisal system. However, a universal ideal system exists, practiced through an ongoing four-phase process rather than a mere annual event.

Phase 1: Performance Planning

At the beginning of the year, managers meet with each employee for planning. This hour-long session outlines:

- How the job will be done (behaviors and competencies expected)
- What results are anticipated (key responsibilities and goals)

This clarity generates immediate improvements and sets expectations for accountability.

Phase 2: Performance Execution

Throughout the year, focus remains on achieving set goals and responsibilities. Managers provide coaching and feedback, addressing performance issues and fostering motivation. Regular mid-year meetings check progress, with employees responsible for seeking coaching and feedback.

Phase 3: Performance Assessment

As the formal appraisal approaches, managers evaluate yearly performance, compiling necessary forms and documentation. They may recommend compensation adjustments based on performance quality. Crucially, appraisers should avoid the myth of needing numerical data?"honest opinions on an employee's work are paramount.

Phase 4: Performance Review

Manager and employee meet to discuss the appraisal, comparing the manager's assessment with the employee's self-appraisal. Honest dialogue focuses on strengths and areas for improvement. This meeting ends with setting a date for the next planning discussion, commencing the cycle anew.

Conclusion

This four-phase process evolves performance management into an ongoing cycle, aligning every member with the company’s mission and values. The true purpose of performance appraisal lies in directing focus on strategic goals, embodying the organization’s vision in daily actions.

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