Understanding Performance Appraisal

Abstract

Recent literature debates the value of performance appraisals, particularly the annual performance appraisal, and especially the value of appraisal ratings. In this chapter, the authors demonstrate their support for the annual appraisal and appraisal ratings, arguing, in general, for an absolute rather than a relative rating system. Appraisal ratings and measurements are discussed, as well as how to avoid common rating errors. Recommendations for preparing for the annual appraisal meeting are presented and a step-by-step process for what to cover in the appraisal meeting is provided. Strategies for clarifying the relationship between performance appraisal and compensation are offered to ensure your employees feel they are treated fairly and to maintain higher levels of employee engagement.

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