A Supervisor’s Guide to Efficient Performance Appraisals

performance appraisal

Annual performance appraisals are critical to any organization. Moreover, managing employee performance is not just a great responsibility but also an important duty for managers. Employee performance appraisals act as the annual event that lets the managers measure the employees’ contribution to the organization’s growth. It helps to identify the goals achieved/not achieved and the scope, the areas in which the employees did great/not-so-great, as well as positive contribution of the employee for which they should be rewarded.

While different companies follow different methods of performance appraisal to review employee performance, there are certain universal principles regarding how to communicate with the employees regarding their performance.

Are you are a newly appointed supervisor or it is your first time reviewing the performance of your subordinates? If yes, this handy guide to efficient performance appraisal will help you approach the event in a systematic manner.


Guide to Efficient Performance Appraisals



What is Performance Appraisal?

Performance appraisal is a technique for assessing the job performance of an employee. It is a continuous process of gathering, studying, evaluating and recording information about an employee’s worth.

Done in a systematic manner, performance appraisal usually includes the supervisors:

– Measuring the pay of employees and comparing it with targets and industry standards

– Analyzing the factors behind their employees’ performances

– Guiding the employees regarding how they can improve their performance


Objectives of Employee Performance Appraisals

If you look at the big picture, performance appraisals help organizations get the best from their workforce. It is not merely a process that helps organizations create employee files for future reference, rather it guides both the employee and organization in the right direction in terms of performance.

Here are some of the most important objectives of reviewing employee performance:

To provide honest feedback to employees on their work performance

– To identify the training needs of the employees

– To document the criteria used for allocating organizational rewards

– To decide the basis for salary increments, promotions, bonuses, etc.

– To identify and create opportunities for organizational growth and development

– To facilitate communication between the employees and the supervisors

– To improve employee performance through counseling, coaching and development training/programs

– To recognize employee efforts and motivate them to perform even better in the future


Benefits of Performance Appraisals

An organization’s success is dependent on its employees’ performances. To assess each employee’s performance and provide genuine feedback, it is necessary to establish an effective performance appraisal system.

A periodic appraisal let the employees understand the areas in which they are doing well as well as the areas, which need improvement. This is just one advantage, however, performance appraisals offer a number of advantages, some of which are outlined below:

– The most important advantage of performance appraisals is that it focuses on improving employee performance

– Performance appraisal helps in identifying the strengths and weaknesses of the employees as well as their training needs

– A thorough and efficient performance appraisal helps supervisors to identify employee shortcomings and suggest measures to overcome them

– As it helps in analyzing the strengths, weaknesses, opportunities, and threats, performance appraisal serves as a great tool for effective career planning and development of the employees

– Effective work performance appraisals help the organizations to identify the employee that should be promoted, rewarded, or given training

– Performance appraisal is an effective tool for recognizing the star performers and motivating employees to work harder

Also Read: Popular Methods of Performance Appraisal in Corporates


5 Tips to Ensure Efficient Employee Performance Appraisals


  • Let the Purpose of Performance Appraisal go Crystal Clear

The fact of the matter is, you know the right purpose of an authentic performance dialogue, but the worker might still be confused over the reason behind it. He might only be thinking over the pay raise he’s going to receive and bases all decisions on the same. However, it’s your duty to let the purpose go crystal clear from the get-go. Think about the impression or message the employee should leave the room with.

This sure does require ample research and introspection at your end. Nevertheless, the result will show during the post-appraisal tasks your employee accomplishes. If the message is conveyed right, seldom are the chances that he calls it a day, even after getting a nominal pay hike.

It can be anything, right from discussing the employee’s future job to hire increased responsibilities in the future. Adding to the same, you can also talk about specific skills that you want him to inculcate during the next financial year. It’s not only the money you need to take care of, but the changes happening after the appraisal as well.


  • Go Prepared with all Statistics

It is observed that employees often leave the room with full enthusiasm if satisfied with the dialogue that happens between them and the manager. Keeping the same in mind, it’s really imperative for you to watch out for every detail pertaining to the employee. Talking on the same lines, you need to be sure over the employee’s accomplishments during the past year and all the pitfalls at his end during the same period.

Also consider whether or not the employee had ample time to make up for the lost work on his part, in case of major absences from work. Think about the career aspirations about the employee and how well is it going with the company’s business objectives at present. You can also anticipate all problems that might go rampant during the discussion and the light way to deal with them as well.

Also, keep in mind all major obstacles that the employee faced if he was unable to achieve the designated targets. Giving a brief thought to these aspects, you can any day keep the discussion under a positive light, even if things go wrong.


  • Spend some time over the Positives of His Performance

Think about the objective of this entire process. Yes, indeed it is to fuel up the dwindling enthusiasm amongst workers, but how?

Obviously, you don’t go ranting about all the targets he didn’t score and all the leads he didn’t generate. However, you do talk about how he handled negative situations and turned them in the organization’s favor. Yes, broadening the thought process, you’ll observe things working much efficiently after the same. He might have been average in producing profits for your department, but what if there’s a major boost in his performance post the discussion! There should be a good reason for him to continue working in your team and company.

Nevertheless, you shouldn’t ignore the areas of improvement that need some light. Let him know about his potential and how he can utilize it to stay at the top of his game. Motivation and improvement at the same time, the discussion just can’t be any better!


  • Agree over Common Areas

For sure, there are things that you don’t agree upon from the get-go. Holding the immense experience that you do, it seems legitimate even to butt in and reply in the negative, in case he’s looking at things from a different perspective. However, what motivates the employee in the real sense is when you agree over common areas and come up with comprehensive solutions together.

What he observes is a willingness from the manager to let him improve and work productively towards targets. This helps you maintain a high employee retention rate as well.


  • Wrap Up the Meeting and Let Him Feel Supported

In the end, make sure that you have discussed and summarized all points. Also, it’s quite significant to make sure that all things discussed were perceived right and even reflected upon, during the future course of days. You can also go ahead and thank the employee for his active participation. What matters is utmost satisfaction for both of you, even after an intense discussion.

Not to forget, do ask for some feedback over the entire process as well as on improving the collective performance during the coming year. It’s all about making him feel valued and leaving things on a positive note!


It’s just a matter of a few facts shaped and present right. Your team would never have any dissent if things go as planned. Stay efficient and organize all that you have. An authentic performance dialogue is what that’ll give you good retention!


Image Source: kentoh / Shutterstock.com

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Categories: Management

About Megha Raizada

Megha Raizada is a professional writer with a keen interest in the global job market. She loves to keep a track of everything interesting happening around the globe. When not writing or browsing the Internet, you will find her creating furniture out of used tires.

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