Appraisals - The evaluation process

Appraisals are a fundamental part of a business and can be advantageous to both the employer and employee. By definition, appraisals record an assessment of an employee's performance, potential and development needs. They are an opportunity for discussion to take place regularly, in a formal manner, on the overall view of work, content, workloads and volume, to review what has been achieved during the last appraisal period and to agree objectives for the next. For an employer, appraisals are used to understand how they can maximise the use of human resources so that the business can develop.

The objective of the process is to improve the employee's performance and future development. It is a positive move from the company and should not be used as an opportunity to criticise an employee's performance but rather an opportunity to offer developmental suggestions.

Appraisals should be made up of four elements. The first is done by the employee: they should be issued with a preparation form that asks them to evaluate their job performance, listing their areas of strength as well as those they believe need to be developed.

The second element is for you to appraise the employee in preparation for the appraisal meeting; you should formulate a list of positives and negatives that you want to review. Remember though, your aim is to build on strengths and find ways of improving weaknesses - not to criticise. Look back at previous appraisal meetings and speak to other relevant managers in advance of the meeting so that you have a clearer picture of the specific points that you want to raise. You need to also look at the employee's job description and look at how well its criteria are being met.

The meeting is the third element and it should be a frank and open discussion. As an appraiser, your main aim is to look to the future and listen. Both you and your employee must bear in mind that your discussion should be focused around agreeing what the job is really about, the employee's job performance and discussing an overall grading for the worker's performance.

Ensure, however, that any criticism is constructive and find ways in which the employee can improve by using it. You must remember to start out with praise and end with praise because, this way, employees are better able to take criticism on board.

The final element of the appraisal is to agree targets and objectives because it is vital for your business to be prepared for the future. Before setting objectives, you must know what the requirements are for the company of both the job and employee. All objectives must be 'smart' (specific, measurable, achievable, results-orientated and timely). You should agree on what the objectives are and set a date to review what progress has been made.

It is vital to remember that the main aim of an appraisal is to increase effectiveness and develop the employee's potential. Appraisals are a good motivational tool because they offer a chance to ensure clarity in an employee's role and give them objectives to aspire to. Likewise, for employers, appraisals provide a valuable way in which to understand how employees will contribute to the future development of your business, as well as realise what aspirations your staff hold.