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Five questions you must ask before you set up a performance appraisal system

by , 25 July 2014
A performance appraisal is a process of evaluating or judging how well your employee is performing.

Labourwise says you owe it to your organisation, as well as your employees, to view performance appraisals in a serious light and ensure that they provide a platform for your employees to improve and grow.

In other words, you must ensure your performance appraisal system is effective.

Take a look at the five questions below to help you implement an effective performance appraisal system.

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Asking yourself these five questions will help you implement an effective performance appraisal system

Question #1: Why do we want an appraisal system?

Question #2: What system or approach will best meet our objectives and fit our company culture?

Question #3: Will the individual, team or organisation perform better (over the short, medium and long term) as a result of the appraisal system?

Question #4: What other unintended effects does the system have on management and employees (e.g. negativity towards increased workload, fear, demotivation)?

Question #5: Do we need a formal appraisal system at all?

Once you have honest answers to these questions, you'll be on track to implementing an effective performance appraisal system.

Just remember that you can have the best designed system, but it's doomed to fail if it's being implemented by people who:

  • Don't understand it;
  • Aren't committed to its objectives; and
  • Don't have the skills to implement and maintain it.


So in addition to asking yourself these questions, make sure the people in charge of implementing your performance appraisal system have the necessary skills.

PS: If you need more information on performance appraisals or on how to implement a performance appraisal system, be sure to check out the Practical Guide to Human Resources Management.

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