EMPLOYEE PERFORMANCE APPRAISAL What is performance appraisal? Performance appraisal (or performance review) is essentially an opportunity for individual employees and those concerned with their performance, typically line managers, to engage in a dialogue about each individual’s performance and development, as well as the support required from the manager. While performance appraisal is an important part of performance management, in itself it is not performance management: rather, it is one of the range of tools that can be used to manage performance. Because performance appraisal is usually carried out by line managers rather than HR professionals, it is important that they understand their role in managing performance and how performance appraisal contributes to the overall aims of performance management. See our factsheet on performance management for more information on that topic. Procedures for appraising performance are usually based on an appraisal meeting. This should not be a ‘top down’ process or merely an opportunity for one person to ask questions and the other to reply, but should take the form of a free-flowing conversation during which a range of views is exchanged. Performance appraisals usually review past actions and behaviour and so provide an opportunity to reflect on past performance. But to be successful they should also be used as a basis for making development and improvement plans and reaching agreement about what should be done in the future. Relationship with performance management The performance appraisal is often the central pillar of performance management. A performance management survey found that a large majority of organisations use individual appraisals as part of performance management programmes. However, it is a common mistake to assume that if organisations implement performance appraisals, they have performance management. This is not the case. Performance management is a holistic process bringing together many activities that collectively contribute to the effective management of individuals and teams in order to achieve high levels of organisational performance. The process is strategic, in that it is about broader issues and long-term goals, and integrated in that it links various aspects of the business, people management, individuals and teams. Performance appraisal on the other hand is operational, short- to medium-term and concerned only with individual employees and their performance and development. While it is one of the tools of performance management, and the data produced can feed into other elements of performance management, appraisal by itself does not constitute performance management. Who assesses performance? Role of line managers Research stresses the importance of a positive relationship between individuals and line managers. Carried out sensitively, the performance appraisal is an important vehicle in developing and maintaining this relationship. For more details, view our factsheet on that topic or find out about out Toolkit which provides an effective way to train line managers efficiently and effectively. 360 degree feedback An alternative approach involves the use of 360 degree assessment, where feedback is gathered from a wide range of commentators – typically including the individual’s direct reports, customers and colleagues – as well as the line manager. See more information in our factsheet on that topic.

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How to conduct a Performance Appraisal Elements of appraisal process The five key elements of the performance appraisal are:

Measurement – assessing performance against agreed targets and objectives, and behaviour and attitudes against espoused values.

Feedback – providing information to individuals on their performance and progress and on what is required to continue to perform well in the future, particularly in view of any change programme and evolution of job roles.

Positive reinforcement – emphasising what has been done well and making only constructive criticism about what might be improved, and drawing out the importance of how things are done, as well as what is done, and ensuring effort is directed at value-adding activities.

Exchange of views – a frank exchange of views about what has happened, how appraisees can improve their performance, the support they need from their managers to achieve this and their aspirations for their future career.

Agreement – jointly coming to an understanding by all parties about what needs to be done to improve and sustain performance generally and overcome any issues raised in the course of the discussion.

Collating information

There is no one right way to conduct an appraisal, as the approach will depend on the nature of the business and the people involved. The appraisal meeting might take the form of a free dialogue between appraiser and appraisee, or follow a more formal structure.

As a minimum, however, it is helpful to have a form or questionnaire (paper-based or online) to collect consistent information for each appraisal. Many companies develop a questionnaire with space for appraisers to rate appraisees on specific aspects of their work such as their contribution to the team, role development and effectiveness.

As a general rule, whatever the format followed, it is helpful to gather some information on the following:

Objectives – whether they were achieved and, if not, the reasons why this did not happen.

Competence – whether individuals are performing below, within or above the requirements of the role.

Training – what training the individuals have received and which training and development activities they would like to receive in the future.

Actions – a note of any actions that need to be carried out by the individual or the appraiser. How objectives are achieved Increasingly, organisations are emphasising the kind of behaviour they want their employees to exhibit. They are therefore not solely concerned with the achievement of objectives but how these were achieved. Some organisations identify a set of positive management behaviours, for example, and rate against them. Others identify the behaviours associated with excellent service and rate against these in the appraisal process. Preparing for the appraisal meeting Both parties should prepare for the review meeting beforehand if a successful outcome is to be achieved. The appraiser should consider:

How well the individual has performed since the last meeting

The extent to which any agreed development plans from the last meeting have been implemented

The feedback to be given at the meeting and the evidence that will be used to support it

The factors that have affected performance, both within and outside the individual’s control

The points for discussion on the possible actions that could be taken by both parties to develop or improve performance

Potential directions the individual’s career might take

Possible objectives for the next review period. Appraisees need to consider:

What they have achieved during the review period, with examples and evidence

Any examples of objectives not achieved, with explanations

What they most enjoy about the job and how they might want to develop the role

Any aspect of the work in which improvement is required and how this might be achieved

Their learning and development needs, with arguments to support their case for specific training

What level of support and guidance they require from their manager

Their aspirations for the future both in the current role and in possible future roles

Objectives for the next review period. Self-assessment In some instances it may be helpful to guide appraisees through a self-assessment process encouraging them to assess and analyse their own performance as a basis for discussion and action. This can improve the quality of the appraisal discussion because individuals feel actively involved in the process and as this encourages them to work through the points identified above in advance. This approach may be particularly useful with more junior staff or those not used to appraisals. However, self-assessment can only work if individuals have clear targets and standards against which to assess themselves. It can also only be effective in a climate of trust where individuals believe their appraisers will not take advantage of an open self-assessment. What a good appraisal looks like A good and constructive appraisal meeting is one in which:

Appraisees do most of the talking

Appraisers listen actively to what they say

There is scope for reflection and analysis

Performance is analysed, not personality

The whole period is reviewed and not just recent or isolated events

Achievement is recognised and reinforced

The meeting ends positively with agreed action plans to improve and sustain performance in the future.

A bad appraisal meeting:

Focuses on a catalogue of failures and omissions

Is controlled by the appraiser

Ends with disagreement between appraiser and appraisee

Leaves the appraisee feeling disengaged or demotivated by the process. Appraisal skills All managers expected to carry out performance appraisal should have some training. Ideally this should not just include the skills of performance appraisal – the ‘how’ to do it – but also encompass the reasons for performance appraisal, or the ‘why’ the organisation does it. Managers should understand how the process fits into the wider strategic process of performance management and how the information and data generated contributes to an understanding of the capacity of the organisation’s human capital to contribute to business strategy and value. However, a basic requirement is that appraisers have the skills to carry out an effective appraisal. In particular, this means that they need to ask the right questions, listen actively and provide constructive feedback. Asking the right questions It is important for appraisers to ask both open and probing questions. Open questions are general rather than specific; they enable people to decide how they should be answered and encourage them to talk freely. Examples include:

How do you feel things have been going?

How do you see the job developing?

How do you feel about that?

Tell me, why do you think that happened? Probing questions dig deeper for more specific information on what happened or why. They should indicate support for the individual’s answer and encourage appraisees to provide more information about their feelings and attitudes, while they can also be used to reflect back to the individual and check information. Examples would be:

That’s very interesting. Tell me more about …?

To what extent do you think that …?

Have I got the right impression? Do you mean that ….?

Listening To be good listeners during the review meeting, appraisers should:

Concentrate on the speakers and be aware of behaviour, body language and nuances that supplement what is being said.

Respond quickly when necessary but not interrupt.

Ask relevant questions to clarify meaning.

Comment on points to demonstrate understanding but keep them short and not inhibit the flow of the speaker.

Giving feedback Feedback should be based on facts, not subjective opinion, and should always be backed up with evidence and examples. The aim of feedback should be to help employees understand the impact of their actions and behaviour. Corrective action may be required where the feedback indicates that something has gone wrong. However, wherever possible, feedback should be used positively to reinforce the good aspects and identify opportunities for further positive action. Giving feedback is a skill and those without training should be discouraged from doing so. Feedback will work best when the following conditions are met:

Individuals are given access to readily-available information on their performance and progress.

Feedback is related to actual events, observed behaviours or actions.

Events are described rather than judged.

Feedback is accompanied by questions soliciting the individual’s opinion why certain things happened.

Individuals are encouraged to come to their own conclusions about what happened and why.

There is understanding about what went wrong and an emphasis on ‘putting things right’ rather than censuring past behaviour.

Performance Appraisal and Management Reviewing and improving individual and team performance should be an important part of every Practice Manager’s role as each staff member’s performance can impact on patient care, practice reputation, staff morale, and can influence how successful the practice is in achieving its business goals. Whilst much of performance management can happen informally, it is important to adopt a strategic, integrated, planned approach. Any performance management system will need to be acceptable to the team involved; therefore a transparent and equitable approach works best. The employees’ perception of the process is crucial to its success; a good performance management system should help employees feel valued and supported. Many businesses run annual appraisal meetings with staff to discuss their recent/current performance, motivations and ambitions, and to identify any areas where improvements can be made by either employee or employer to improve overall performance. Appraisals should acknowledge current performance and, if appropriate, recognise and reward areas of achievement. Appraisals should also highlight areas where improvements can be made and generate ideas about personal and team performance. As with interviews, good preparation is key to conducting a good appraisal. The appraiser should be familiar with the role their appraisee (see the job description) and how they routinely perform. Ideally, the appraiser should have given consideration to each known achievements and shortcomings (if any) so as to ensure that appropriate thanks, praise, and constructive feedback can be given. It is, however, also important to go into the appraisal with an open mind and listening ear. Appraisals should always be focussed on learning from, and fully understanding the appraisee - rather than just on delivering a pre-determined message. Sample questions could include:

What has worked well for you this year? Why was it so successful?

What did not work so well?

What have you needed to change this year?

How satisfied are you with your role? What do you enjoy most? What do you dislike?

Is there anything you feel is not working well in your team?

What challenges/obstacles do you feel you are likely to encounter in your role? How can you deal with them? How can the Practice help you to be ready for the challenges ahead?

On a scale of 1 to 10, how well would you feel you / your team are performing? What could be better?

Are there any aspects of your role that you feel are problematic? Why is that? What could we do about it?

In your opinion, how could the team / Practice be run more effectively?

In your opinion, how could your role be best organised? Would you make any changes?

What achievement are you most proud of since our last appraisal? Oftentimes, appraisers dread giving feedback which could be construed as criticism. In the event of an appraiser having to raise concerns about poor performance, it may be helpful to follow these tips:

Ask the appraisee if there are any areas where they feel their performance to date could have been better. See can you help them identify their own weaknesses and come up with their own solutions to address them.

If the appraisee is genuinely unaware of the problem, understand that becoming aware of the issue may cause distress and raise it gently – perhaps after acknowledging an area in which they did achieve a high standard.

Always have notes of instances or examples of the appraisee’s behaviour which you can refer to in case you are challenged; however, it is usually more constructive to focus on the future rather than on reliving previous mistakes. For example, if a complaint was received regarding a staff member’s conduct, and the matter is to be discussed at a performance appraisal, the details of the incident should be to hand, even if they are never referred to.

If you are expecting an appraisee to react in a confrontational manner, it may be useful to introduce the topic by acknowledging your concern, e.g. “There is an area which we need to discuss, but I am concerned about how you might react.” This mentally prepares the appraisee for “bad news”. It is advisable to stay focussed on problems with the behaviour and not problems with the individual.

Don’t confuse an appraisal with a disciplinary meeting. It helps to remain very positive and to talk about future improvements much more than old mistakes. If necessary, reiterate during the meeting that the aim of the appraisal is to be constructive and to plan for the future rather than to dwell in any previous behaviour.

Source: Various Date: June 14th, 2013 Prepared By; Tony Gillings Review Date: April 22nd 2016

Employee Performance Appraisal Form (Template)

Part A Appraisee to complete before the interview and return to the appraiser by (date)

A2 Discussion points:

Org/Division/Dept:

Year or period covered:

Name: Ref:

Location/based at:

Position:

Time in present position: Length of service:

A1 State your understanding of your main duties and responsibilities.

Appraisal date & time: Appraisal venue: Appraiser:

1. Has the past year been good/bad/satisfactory or otherwise for you, and why?

2. What do you consider to be your most important achievements of the past year?

3. What do you like and dislike about working for this organisation?

4. What elements of your job do you find most difficult?

5. What elements of your job interest you the most, and least?

6. What do you consider to be your most important aims and tasks in the next year?

7. What action could be taken to improve your performance in your current position by you, and your boss?

8. What kind of work or job would you like to be doing in one/two/five years time?

9. What sort of training/experiences would benefit you in the next year? Not just job-skills - also your natural

strengths and personal passions you'd like to develop - you and your work can benefit from these.

A3 List the objectives you set out to achieve in the past 12 months (or the period covered by this appraisal)

with the measures or standards agreed - against each comment on achievement or otherwise, with reasons where appropriate.

Score the performance against each objective (1-3 = poor, 4-6 = satisfactory, 7-9 = good, 10 = excellent):

Objective Measure/Standard Score Comment

A4 Score your own capability or knowledge in the following areas in terms of your current role requirements (1-

3 = poor, 4-6 = satisfactory, 7-9 = good, 10 = excellent). If appropriate bring evidence with you to the appraisal to support your assessment. The second section can be used if working towards new role requirements.

1. Commercial judgement

2. Product/technical knowledge

3. Time management

4. Planning, budgeting and forecasting

5. Reporting and administration

6. Communication skills

7. Delegation skills

8. IT/equipment/machinery skills

9. Meeting deadlines/commitments

10. Creativity

11. Problem-solving and decision-making

12. Team-working and developing others

13. Energy, determination and work-rate

14. Steadiness under pressure

15. Leadership and integrity

16. Adaptability, flexibility, and mobility

17. Personal appearance and image

Others (for current or new role):

18. Corporate responsibility and ethics

A5 In light of your current capabilities, your performance against past objectives, and your future personal

growth and/or job aspirations, what activities and tasks would you like to focus on during the next year. Again, also think of development and experiences outside of job skills - related to personal aims, fulfilment, passions.

Part B To be completed during the appraisal by the appraiser - where appropriate and safe to do so, certain items

can completed by the appraiser before the appraisal, and then discussed and validated or amended in discussion with the appraisee during the appraisal.

B1 Describe the purpose of the appraisee's job. Discuss and compare with self-appraisal entry in A1.

Clarify job purpose and priorities where necessary.

B2 Review the completed discussion points in A2, and note the points of and action.

B3 List the objectives that the appraisee set out to achieve in the past 12 months (or the period covered by this

appraisal - typically these objectives will have been carried forward from the previous appraisal record) with the measures or standards agreed - against each comment on achievement or otherwise, with reasons where

appropriate. Score the performance against each objective (1-3 = poor, 4-6 = satisfactory, 7-9 = good, 10 = excellent).

Compare with the self-appraisal in A3. Discuss and note points of significance, particularly training

and development needs and wishes, which should be noted in B6.

Objective Measure/Standard Self-score/App'r score Comment

B4 Score the appraisee's capability or knowledge in the following areas in terms of their current (and if

applicable, next) role requirements (1-3 = poor, 4-6 = satisfactory, 7-9 = good, 10 = excellent). If appropriate provide evidence to support your assessment. The second section can be used for other criteria or if the

appraisee is working towards new role requirements. Compare scores with the self-appraisal in B4. Discuss and note agreed points training/development needs and wishes (to B6).

1. Commercial judgement

2. Product/technical knowledge

3. Time management

4. Planning, budgeting and forecasting

5. Reporting and administration

6. Communication skills

7. Delegation skills

8. IT/equipment/machinery skills

9. Meeting deadlines/commitments

10. Creativity

11. Problem-solving and decision-making

12. Team-working and developing others

13. Energy, determination and work-rate

14. Steadiness under pressure

15. Leadership and integrity

16. Adaptability, flexibility, and mobility

17. Personal appearance and image

Others (for current or new role):

18. Corporate responsibility and ethics

B5 Discuss and agree the appraisee's career direction options and wishes, and readiness for promotion, and

compare with and discuss the self-appraisal entry in A5. (Some people do not wish for promotion, but everyone is capable of, and generally benefits from, personal development - development and growth should be available to all, not just people seeking promotion). Note the agreed development aim(s):

B6 Discuss and agree the skills, capabilities and experience required for competence in current role, and if

appropriate, for readiness to progress to the next role or roles. Refer to actions arising from B3 and the skill-set in B4, in order to accurately identify all development areas, whether for competence at current level or readiness to progress to next job level/type.) Note the agreed development areas:

B7 Discuss and agree the specific objectives that will enable the appraisee to reach competence and to

meet required performance in current job, if appropriate taking account of the coming year's plans, budgets, targets etc., and that will enable the appraisee to move towards, or achieve readiness for, the

next job level/type, or if no particular next role is identified or sought, to achieve the desired personal growth or experience. These objectives must adhere to the SMARTER rules - specific, measurable, agreed, realistic, time-bound, ethical, recorded.

B8 Discuss and agree (as far as is possible, given budgetary, availability and authorisation considerations) the

training and development support to be given to help the appraisee meet the agreed objectives above.

Refer to the guidance notes. Personal development and support must be offered to all employees, irrespective of

age, gender, race, disability, etc., and not just to those seeking promotion. Development is not restricted to job skills - it includes 'whole person'. Use your imagination. Job skills training isn't restricted to courses. Think about

coaching, mentoring (by and of the appraisee), secondment to another role, holiday job cover, shadowing, distance-learning, e-learning, books, videos, attending meetings and workshops, workbooks, manuals and guides,

researching, giving presentations; anything relevant, helpful and agreed to help the person develop. Avoid committing to training expenditure before suitable approval or availability has been confirmed. Understand development options and procedures before conducting the appraisal. Develop the whole person.

B9 Other issues (to be covered separately outside of this appraisal - continue on a separate sheet if necessary):

Signed and dated by appraisee: and by appraiser:

Distribution of copies/confidentiality/accessibility details:

Grade/recommendation/summary as applicable: