Performance appraisals are very important and provide a periodic evaluation of an employee’s job performance based on a set of expectations and goals. The results of an employee’s performance appraisal are used to make informed decisions for the individual employee and the organization, in areas such as compensation, promotion, and employee development.

Regardless of what type of appraisal system you use, you need to set goals for each employee. These goals should relate to and support the department’s goals and your organization’s mission and values.

Rating Scales should be used to indicate an accurate assessment of an employee’s performance and to measure how individual employees measure up against others.

Self-Assessment appraisal systems promote an honest performance feedback discussion and helps to ensure that the employee’s contributions are not overlooked by a busy Manager.

HR Best Practice favors continuous feedback and coaching, not just once a year at Appraisal time. Another HR Best Practice is Performance Calibration, which is a process where a group of managers come together to discuss the completed performance appraisals, with the goal of ensuring that all managers are using similar standards and criteria to evaluate and rate employee performance.

At the employee’s performance review meeting, the Manager should always be prepared for the meeting, start it on time, and conduct the meeting without interruptions. That shows respect for the process and the employee.