"…and what did you score yourself for Communication?"
"Eh…let me see…oh yea, I gave myself a 4 for that?"
"No, no I don"t think you"re at that level just yet, I gave you a 2.5."
"But I…"
"And how did you rate yourself for Teamwork?"
"Actually, I gave myself a 5 for that, as I always try to help my colleagues in ev…"
"A 5..? No, no, again that"s a bit ambitious I think. Five means perfect. Nobody"s perfect. I gave you 3.5 for that."
"But, but, I always…"
"And what did you score yourself for Customer Focus…bearing in mind what I just said?"
"Well, I had that at 5 too, but you"ll probably say it"s a 3 or something…"

And on and on the "Appraisal" went.
Or, so the employee in question – who recently told me about the experience – explained. He also said he had gradually become more and more disillusioned with the appraisal as the session advanced. The focus was purely on scoring each heading, with little feedback or discussion taking place on the actual performance; and certainly no guidance give as to how to improve in future. In essence, he was "told" how he had performed and how he needed to improve. Not an experience he was overly interested in repeating, he said to me.

This is not an unusual outcome of Appraisals in my experience. Now, don"t get me wrong, not all appraisals go astray for the same reasons, but go astray they frequently do, in the sense that they don"t deliver on the main goal: to recognize employee achievements and help them to improve in future, for their benefit, and for the benefit of the business. If I was to summarize the various reasons I have seen as to why appraisals fail, or under-deliver, the causes could be grouped as follows:

  1. 1.
    How they are viewed
  2. 2.
    How they are managed
  • Often you hear them described as "Appraisal Interviews" when in fact they should be seen as "Appraisal Discussions". This is not a simple change in terminology, or playing with words: interviews symbolize one person extracting information from another. Discussions, on the other hand, are two-way exchanges of information, which is supposed to be what appraisals are about.
  • Many managers, and indeed employees, see appraisals as "something to be done"; one of those annoying tasks they need to get out of the way once or twice a year. They see little value in them, partially because they see few results arising from appraisals – in other words, nothing substantial changes for either the manager or the employee, so each year they put less and less effort into the process.
  • Often, appraisal outcomes are tied to "salary reviews" which I think is crazy. Do you really believe that any employee will be honest about their performance (particularly their weaknesses) if they know that the outcome of that meeting will influence whether they get a pay rise or not?
    Hardly likely.
    My advice is to keep appraisals and salary reviews separate: for example, hold the appraisal in mid-year, and the salary review towards end-year whilst budgeting for the following year. Then, depending on the level of improvement seen from the appraisal to the review, this will, in part, determine the decision taken on pay increases.
  • In many cases, given the above, both managers and employees prepare badly for the appraisal discussion, so they are naturally ineffective. If you fail to prepare, you prepare to fail as they say.
  • Sometimes the "system" takes over and the focus is on scoring each appraisal heading, or on completing the paperwork around the appraisal process. The system should be a secondary concern.
  • Often, appraisals fail simply because the manager (s) involved lack the skill necessary to effectively manage such intensive and potentially stressful events.

In summary, appraisals should never be:

  • Disciplinary hearings
  • A chance to "tell someone what you really think of them"
  • A one-way method of communication
  • A pay review
  • A "Battle"
  • Something you feel you have been "told to do"
  • A "quick informal chat" (that"s a job-chat, something different entirely)

Appraisals – when managed effectively – provide a great opportunity for a structured review of an individual"s progress, performance and results; in that sense, they are part of the performance management effort. Nothing too revolutionary about that statement, you will undoubtedly agree. That said, what is often forgotten about appraisals is that they are supposed to form part of employee motivation efforts too and unless they leave each employee feeling better about themselves as a result (even if they have had to recognize their shortcomings) then they have failed. And, although appraisals require significant time and effort, it"s worth that investment because getting your appraisals right can bring many benefits in my experience:

Benefits for your business

Effective Appraisals can:

  • Help create an atmosphere of openness and trust within your business.
  • Develop closer working relationships between a manager and his/her employees.
  • Highlight training and development needs (individual and collective) as well as helping you identify organizational blockages you were possibly unaware of.
  • Recognize achievement, and as a result, help to increase motivation which in turn can lead to greater productivity.

Benefits for you and your management team

Effective Appraisals can:

  • Help to develop teamwork – removing the "them and us" barriers between managers and employees.
  • Provide you and your managers with an opportunity to really listen individually to your people; and to learn from those encounters.
  • Help you to give direction to each team member and the team as a whole.
  • Contribute to generating respect between you and your team.
  • Highlight problem areas in a given department.

Benefits for your people

Effective Appraisals can:

  • Enable your employees to receive considered feedback on their performance in a structured setting.
  • Allow them to discuss their future with their direct manager so that they can see a career path for them – which matters for many employees.
  • Assist with problem solving in the sense that an employee can raise concerns they have which helps you to solve/address problems.
  • Recognize their contribution to the company and lead to the preparation of a development plan for them.

Getting the most from your Appraisals

To realize the above benefits, as I said, takes time and effort but in my experience managers who treat appraisals seriously see a lot of reward for that effort. To help you increase your effectiveness as an Appraiser, consider the process under three headings:

a) Preparation for the Appraisal Discussion
b) Conducting the Appraisal Discussion
c) Following up the Appraisal Discussion

a) Preparation for the Appraisal Discussion

To get the most from an appraisal session you need to focus on a number of things before the actual discussion takes place. In preparing for an Appraisal you should:

Give the employee notice in advance

  • Outline purpose of appraisal
  • Explain how to complete whatever form/online tool you use
  • Agree time and location for discussion.
  • For "difficult" employees, you should spend time here getting them to think about particular areas of their performance where there are problems, or in trying to get them to see the process in a positive light.

Review Employee Performance
You need to look at as much relevant evidence – and other perspectives - regarding the employee"s performance as possible. Areas where you will get this information will include:

  • Previous Appraisal forms
  • Job Descriptions/Personal File
  • Consulting other managers who come into contact with the employee
  • Reviewing any personal objectives/goals set for them, or projects the employee was involved in.


Evaluate Employee Performance

  • Based on the headings of the appraisal form/tool you use, you should make some judgments about the employees performance.
  • Don"t complete the form fully yet – if you do, then what is the point on having an appraisal discussion? You"ve already made up your mind …… complete it roughly, so that you can compare your rating to that of the employee.
  • There is no point going to an appraisal armed with "your" result versus "their" result and spending time arguing over whose appraisal is right.
  • Obviously, you must have some evaluation ready but keep an open mind.

Prepare location for Appraisal Discussion

  • Get the balance right between formal/informal set-up
  • Allow adequate time for each appraisal
  • Don"t arrange too many in one day
  • Make sure you will be free from disruptions

Prepare outline "Agenda" for Discussion

  • All appraisals should follow a similar format in the interests of consistency.
  • You should prepare some brief notes of how you will conduct the appraisal discussion- particularly if you are new to it.
  • Also try to anticipate what difficulties might arise and mentally prepare for them.

The above points will ensure that you and each employee are adequately prepared for the session which will help to improve the result. As mentioned, a lot of appraisals have failed before they even start due to lack of preparation. Don"t fall into that trap.

b) Conducting an Appraisal Discussion

The principal aim of the appraisal is to allow discussion to take place on an employee"s performance in a relaxed environment. You will no doubt have your own opinion of their performance and they will have their own. But the objective is to get agreement on how they can improve with your assistance and support.

So, how you approach the session will be crucial to its outcome.

All appraisals differ depending upon the nature of the person, their length of service and so on. It is also not a good idea to complete the appraisal form fully during the session, as you will not be listening properly. What"s more, sitting watching you fill in the form as they are talking can be off-putting for the employee and it will be difficult to get a discussion going. Therefore you should only take brief notes during the session.

Try to follow this format:

Introduction

  • Welcome
  • Break the ice
  • Restate purpose, format, time, their/your role
  • Tell them you will be taking notes
  • Emphasize objectives

Review Performance

  • Encourage employee to review their overall performance since last appraisal/job chat/salary review
  • Use question technique and listening skills to get them to talk
  • Praise performance where appropriate
  • Then, review specific performance under appraisal headings
  • Always seek their opinion first – how did you feel you performed in this area?
  • Discuss strengths/weaknesses
  • Give feedback on performance
  • Agree result – "scoring" each heading should always be the last concern.
  • Summarize all strengths identified after all headings covered.

Identify Performance Weaknesses

  • Discuss in detail the causes of all performance weaknesses identified after all headings have been covered
  • Seek their opinions on how they can improve
  • Identify training and development/support needs to make the required improvement happen.

Agree Action

  • Discuss how to maintain their strengths
  • Agree action to improve week areas
  • Set personal objectives
  • Gain their commitment.

Close Session

  • Summarize the key points
  • Outline follow up
  • Explain what happens with the appraisal form
  • Thank them.

This approach to conducting the discussion should help you to be more focused and structured in how you interact with your employees.

c) Following up the Appraisal Discussion

Once the session has been completed there are a number of things you should do:

Complete the Appraisal Form
Complete the form immediately after the appraisal discussion while the details are fresh in your mind.

Record Action Points
There is no point in agreeing action if you are not going to follow it up. To do this you must keep a record yourself.

Complete Administration
Ensure that all administration relating to the appraisal is complete and the forms are filed appropriately – always keep whatever "system" you use as simple as possible: it is there to support the process not make it cumbersome and frustrating to complete.

Self-Appraisal
You should always devote some time to rating your own performance as an Appraiser. If things didn"t go well, try to analyze why not, so you can improve your own performance next time.

Follow-up
Follow up an all action agreed at appraisals. In my experience, employees always rate the success of an event like an appraisal by whether or not it is followed up. If you show that you have taken it seriously and constantly refer to it, where appropriate, in your day to day dealings with your people – you will see a more positive approach from them at the next appraisal.

Finally, consider one last point here. During an appraisal session you too are under review by your employees: if you lack commitment to the process, do not fully prepare yourself and are attempting to "wing it", then they will obviously notice that. And they will read a lot from that too which will impact negatively somewhere along the line. You will have scored a significant own goal if you allow that to happen.

And, trust me, that particular score will matter.

Enda Larkin has over 25 years experience in the hotel industry having held a number

of senior management positions in Ireland, UK and the US. In 1994 he founded HTC Consulting, a Geneva based firm, which specialises in working with enterprises in hospitality and tourism. Since that time, he has led numerous consulting projects for public and private sector clients throughout Europe and the Middle East. He is author of Ready to Lead? (Pearson/Prentice Hall 2007), How to Run a Great Hotel (How to Books 2009), 'Quick Win' Leadership (Oak Tree Press 2010) and Journeys – Short Stories and Tall Tales for Managers which is due to be published in March 2012. He may be contacted via www.htc- consult.com or at [email protected]. Read his Blog at www.htc-consult.com/new/blog

Enda Larkin
HTC Consulting
+41 (0) 22 700 8675
HTC Consulting