In sophisticated, well-managed organizations, performance appraisal is the single-most powerful instrument that management has to mobilize the energy of every employee toward the achievement of strategic goals.
Used poorly, performance appraisal becomes a dreaded annual exercise that is widely seen as a waste of time. But used well, the procedure focuses every employee’s attention on the mission, strategy, vision, and values of the organization. It makes it possible to answer the two questions that every person asks: what do you expect of me, and how am I doing at meeting your expectations. And it differentiates among outstanding, solid, and marginal performers.
The most-admired organizations use performance appraisal right. They have the know-how to set meaningful goals, assure effective execution, assess individual contributions and deficiencies, identify and retain top talent, and rewarding employees on a meaningful, accurate basis. If exemplary performance is important to your organization, there is no faster or more controllable way to gain dramatic improvement than by implementing a performance appraisal process that is right for your company and your people.