HR Solutions: Performance appraisals valuable - if done properly

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Performance evaluations can provide positive feedback and increase productivity, motivation and job satisfaction in small businesses. Communication regarding expectations is improved, and turnover is decreased. |ret||ret||tab|

Despite the obvious benefits to small businesses, conducting written appraisals is not commonplace, and the few organizations that do perform reviews typically find the experience more detrimental than positive. |ret||ret||tab|

To reap the advantages, consider seven key areas:|ret||ret||tab|

Obligations and personality|ret||ret||tab|

Forms that do not reflect actual job duties and behaviors expected is the No. 1 complaint from employees about performance evaluations. It is critical to include all areas of accountability and personality characteristics necessary for success. Be sure to behaviorally define the traits to comply with legal requirements. |ret||ret||tab|

Assign a numerical rating, from one to five, to each responsibility and attribute. Interpret a one rating as performance that is significantly below standard. Two means the worker did not meet the criteria, three designates achieving expectations, four denotes exceeding requirements and five indicates greatly surpassing them. Support each rating with actual observations of conduct.|ret||ret||tab|

|bold_on|Positive feedback|ret||ret||tab|

Facts should be gathered throughout the year to support the numerical ratings. Therefore, make a conscientious effort to catch your staff going above and beyond the call of duty. Immediately furnish specific, sincere, positive feedback. Briefly write down the behaviors and keep your notes in a file for future reference. |ret||ret||tab|

|bold_on|Negative feedback|ret||ret||tab|

Any formal counseling occurring over the past year must be documented on the review. Informal counseling should never be mentioned unless you had to coach the team member for a lengthy period of time before the behavior changed. |ret||ret||tab|

Do not save up problems and surprise the employee during the appraisal meeting. Address irritants as they appear. |ret||ret||tab|

|bold_on|Goal setting|ret||ret||tab|

Review goals established at the last review and set one to five new ones for the next year. Allow subordinates to actively participate in determining goals. Synchronize individual aspirations with department and company objectives. Create specific, measurable and challenging goals with time deadlines.|ret||ret||tab|

|bold_on|Career development|ret||ret||tab|

Include questions covering what is enjoyable about the job and company. Seek recommendations for improvements to the business. Ascertain career aspirations.|ret||ret||tab|

|bold_on|Management effectiveness|ret||ret||tab|

For small-business owners who have created a trusting environment, ask questions regarding your supervisory style. Are your instructions clear? Do you change your mind often, resulting in associates' spending time on unnecessary tasks? Do you make changes without any real improvements? Are you available and open to new ideas? Do you operate in a crisis mode too often?|ret||ret||tab|

|bold_on|Appraisers|ret||ret||tab|

The immediate supervisor and the worker should both complete the same form separately. Peers assessing peers and subordinates critiquing superiors are options only in truly team-oriented companies. Otherwise, these choices will cause extremely negative appraisal experiences.|ret||ret||tab|

Maximize effectiveness and minimize turnover by implementing and properly conducting performance reviews.|ret||ret||tab|

|bold_on|(Lynne Haggerman is president and owner of Haggerman & Associates, an employment, management training, human resources consulting and outplacement firm, and the author/presenter of the seminar "Performance Appraisals for Positive Results.")|ret||ret||tab|

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