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  1. Remember that the best way to inspire your employees to perform better is to show them your support and trust with every action and attitude.
  2. If the performance appraisal system is constructive, it is a tool for developing and motivating employees. As well as raising quality standards, increasing productivity and maintaining a focus on organizational goals.
  3. Daily performance management can be done in a few steps. First, plan what needs to be done (involving the employee to feel more engaged) and set expectations. Monitor and periodically evaluate the performance of the employee. Develop the employee’s skills through training, challenging tasks, career development opportunities. Reward good performance in order to stimulate further improvement.
  4. You can establish performance evoluation through different methods. In goal-setting management, the manager sets specific goals and the employee agrees to be evaluated according to the degree of their achievement. In the evaluation on a scale, the employee is evaluated on a scale from performance evaluation “poor” to “excellent”. The criteria are fixed separately for each position. In the descriptive performance review, the manager fills in a written description of the employee’s performance. In order to ensure maximum objectivity in the assessment, you can use a 360-degree feedback method.
  5. Whether or not you focus on performance appraisal through goal-based management, goal setting is critical to the organization as a whole. Goals set frameworks, standards, and clarify expectations for each participant. That is why it is very important to set goals with your team. It is good that they meet the SMART requirements. It means to be specific, measurable, achievable (or attainable), relevant, and time-bound.
  6. Through the performance evaluation system you can identify your “stars” in the team. If you link the system to that of remuneration, it is important not to forget those remaining about 80% of your employees who, although are not “stars”, play a crucial role in the success of the organization. They must also be motivated and given the opportunity to develop.
  7. The key factor for performance evoluation is providing feedback. The feedback needs to be concrete, descriptive (not judging), focused on specific performance (not the personality) and constructive.
  8. It is very important to establish an attitude towards the evaluation of work performance as an opportunity for development. So, as not to be associated with negative feelings and to provoke the participants to be as open as possible in the process.
  9. The existence of a performance appraisal system motivates the possible promotion of an employee. Promotion does not just mean a change of position or promotion in the hierarchy/ It also means more responsibilities. That is why we need to carefully decide who will be promoted. The appropriate time for this is after the end of the annual evaluation of employees. Remember that good individual results are not a sufficient motive for the promotion of an employee. It is so because he must be a leader, be able to work in a team and achieve results, be able to delegate, allow his team to develop instead of be the only one in the spotlight. This is why “stars” are not always a good choice for promotion.
  10. When deciding to promote, you can ask your employees to recommend or vote by secret vote. After determining the person who will be promoted, and after a personal conversation with him, it is appropriate to notify everyone on the team at once, clarifying the reasons for this decision.
  11. Performance appraisal suggests that in addition to identifying “stars” and employees ready for promotion. It will also focus you on those who are not performing well enough. This is most likely a small percentage of your employees who make a minimal effort that do not live up to your expectations and / or create problems. Sometimes they have to be lay off. When you need to lay off someone, talk to them in private and justify your decision. Think about the possible consequences. Who will take over the functions of dismissal, how the particular employee would accept it. For example, such an act would be very difficult to accept by a young person for whom this is the first job.
  12. In addition, it is necessary to evaluate team performance too. This is even more difficult. When you build a team, you bring together people with different qualities, strengths and weaknesses, style of work. Ideally, these different people complement and function effectively together. To successfully manage your team and to be able to evaluate their overall performance, start by agreeing on performance standards and goals. You, as team leader, need to explain to your subordinates what their team mission is. As well as how you expect them to accomplish it, what challenges may be encountered along the way, and how you will measure team success.
  13. When the team is not performing as expected, you need to identify the problem – whether the cause is in the wrong management style, focus, goals, skills or teamwork. If you have to lay off a team member, it will inevitably affect group dynamics. This will also happen if you decide to promote someone. In both cases, it is extremely important to communicate the reasons for your decision.
  14. Most experts agree that a successful performance appraisal system includes 4 components – a specific and clear organizational definition of job performance, a training and development program to focus on improving job performance, an objective appraisal system and method for recognition and rewarding.
  15. Different approaches to the performance appraisal system are possible. Individual evaluation implies an evaluation of the individual performance of the employee. Team appraisal involves the appraisal of the employee in relation to the other members of the team – the team members are divided into pairs and compared. The third approach is to compare the employee on a scale with all other employees in the company, and he can fall into the best performing 10%, the average performing 80% or the poorly performing 10%.
  16. You can measure the effectiveness of the performance appraisal system by changing employee ratings, the percentage of vacancies filled from within, the average rating of a business unit, the percentage improvement in employee satisfaction, employee retention and others.
  17. To keep your performance appraisal system up to date and effective, explore improvements in employee retention, productivity, competence, and progress. Periodically evaluate performance standards and encourage employees to continuously share feedback. In this way you will be able to motivate them.