Groan…  Yes, we’re going to talk about performance appraisals/annual reviews.

Why do we dislike them so much?  Common reasons:

• The process feels awkward.
• It doesn’t yield meaningful information.
• Bosses don’t do it well.
• Employees experience great anxiety.
• It seems so subjective or unfair

How can we do a better job?

1. Focus on performance.  Seems obvious, right?  The major problem is that most jobs do not have clear performance expectations that are shared and understood by both management and employees.  We get vague generalities, “areas of responsibility”, or a listing of common tasks, but clear and measurable performance standards are often missing.  You cannot have a meaningful performance review unless there are clear performance standards for a job.  Managers who ignore this are responsible for a majority of the recurring headaches they face in managing people.
2. Create the right context.  This is not the time for counseling, grievances, or unfocused conversations.  The goal is to help the employee be successful and the company/organization to meet or exceed it’s objectives.  Appraisals are time for an honest assessment, for feedback so that people know for sure if they are getting the job done or not.
3. Use a simple format.  I like the one first suggested by Peter Drucker.  Start with a statement of the major contributions expected from the present position, then ask four questions:
   1. What has this person done well?
   2. What, therefore, are they likely to be able to do well?
   3. What does this person have to learn or to acquire to be able to the get the full benefit from their strength?
   4. If I had a son or daughter, would I be willing to have him or her work under this person?  (i)  If yes, why?  (ii) If no, why?

The truth is, most employees are frustrated by the lack of real information that comes out in a performance appraisal and the apparent subjectivity of the judgments made about them.  What they want to know is, “Am I doing a good job?  Where can I improve?”  Good managers that help them answer these questions in a fair and objective way garner a lot of respect.