The business case for Appraisals
October 5th, 2009 | Published in Employee engagement, Measuring Performance, appraisal, management development, motivation
To many employees, managers and business owners, performance and 360 appraisals are a bureaucratic and time-consuming chore. As people professionals we often find ourselves having to argue the case for Appraisal and its benefits.Â
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People need a clear understanding of their role, what they are expected to do as their key tasks (i.e. their goals), and the scope of their responsibilities
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People then need to understand clearly how their performance is going to be assessed - how their training, pay and promotion is going to be affected by their performance
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A consistent, transparent appraisal process ensures that as far as possible, people are being assessed on a consistent basis, on the things that they have agreed to be assessed on, and have a fair chance to put their case forward in a two-way discussion with their employing organisation.
There is in addition a strong business case for getting a good, customised appraisal in place. Â
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Although time needs to be spent in running the appraisal process, this will be less than the chaos of not having any guidance in place, where managers judge their people entirely on their personal preferences and assumptions. A fair appraisal system makes people feel that they are being treated fairly and consistently – a key indicator of employee engagement, which is critical to good employee performance
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Having a good appraisal system in place ensures the business has an audit of the ongoing interactions with employees around performance problems, and can be an important factor in the employer’s favour if any cases are ever brought against the employer for unfair dismissal etc.
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Appraisal need not be a long painful process: keeping your appraisal process simple, straightforward and directly linked to the company’s business objectives will ensure that people use it and that managers rate it.
