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The importance of performance appraisals and three mistakes you should avoid when doing them

by , 24 July 2014
We've spoken numerous times about how both employees and employers dread performance appraisals. But, it seems the hatred for appraisals runs deep.

According to Labourwise, one study showed that 80% of employees were dissatisfied with their company's performance appraisal system. And many managers find it an extremely stressful process.

If you're thinking: 'Why not just do away with performance appraisals altogether, since not many people like the process?', continue reading to discover the importance of performance appraisals.

We'll also give you three mistakes you should avoid when doing them so you can ensure this all important performance management process is effective.

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Here's why performance appraisals are important

A performance appraisal is a critical step in the performance management process.

Labourwise explains that, Robert Green, CEO of Reward Systems Inc., said: 'Performance management is the single largest contributor to organisational effectiveness. If you ignore performance management, you fail.'

The site adds that you owe it to your organisation, as well as your employees, to view performance appraisals in a serious light and ensure that these provide a platform for your employees to improve and grow.

Another key point to note is the reason some employees often dread performance appraisals is because managers make these mistakes...

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Take a look at three common mistakes that managers make when doing performance appraisals so you can avoid them

Mistake #1: Inability to give criticism

Many employees become defensive when they receive criticism, which makes it difficult for managers to provide negative feedback. Be aware of this and aim to give constructive criticism in a sensitive way, says Labourwise.

Mistake #2: Personality biases

Focus on performance and not personality. Be careful not to rate someone better because they're a nice person or alternatively rate someone less favourable because they have a difficult personality, adds the site.

Mistake #3: Not giving specific feedback

It's important that your employees know what you expect from them. So clearly define expectations and monitor them.

There you have it: Appraisals are an important part of performance management. To ensure they're effective, avoid the mistakes we've outlined when doing them.

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