Performance appraisals are instruments used to evaluate an employee's job performance in terms of quality, quantity, cost and time. There are many benefits to using these tools for pinpointing exactly where employees are in their level of functioning. Every organisation, despite its size, must be concerned with managing the performance of human capital, processes and systems within their operation.

Here are three questions ever company should ask regarding the proper use of Performance Management tools:

1. Why do we still use them in the workplace?

• They give employees feedback on their performance

• They identify employee training needs

• They validate selection techniques and human resource policies

• They assist in documenting criteria used to allocate organisational rewards

• They provide the opportunity for organisational diagnosis and development

• They facilitate communication between employee and administration

• They assist in forming a basis for human resources decisions: Salary increases, promotions, disciplinary actions etc.

2. What are the best practices in the administration of these instruments?

• There must be ongoing documentation of employee performance throughout the evaluation period. If this does not happen, the evaluator is more inclined to complete the evaluation based on the last few behaviours and actions of the employee.

• The appraisal must be used as a tool of development. If employees view the instrument as a disciplinary action, or something that holds up the increment or bonus, then very little growth will take place.

• The instrument must be done fairly and accurately. It amazes me how many appraisals do not reflect the truest depiction of the employee being evaluated. We have constantly been accustomed to giving glorious reports for lacklustre and less-than-glorious performance. Truth and honesty must be the watch words when assessing performance if success and growth are to follow.

• The performance appraisal should - and must be shared - with the employee. It is a tragedy that employer, managers and leaders complete secret employee appraisals without even sharing all the details with the worker. This completely undermines the benefits of a performance management system.

3. What are the benefits of using a customised appraisal document?

• It fits the unique needs of your company and your performance appraisal system

• It properly documents job-based understandings that develop between supervisor and employee

• It provides easy-to-reference information to properly guide the future development of the employee

• It is highly flexible

• It focuses more on the future than on the past•

NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.