Performance Appraisal

Employee
appraisal
booklet
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Employee Appraisal Text 03.08 26/3/08 10:46 Page 1
Contents
1 Introduction: the general principles 3
What are appraisals? 3
What are the objectives of appraisals? 3
What are the benefits of appraisals? 4
Is a formal appraisal system suitable for smaller companies? 5
Who should be appraised? 5
Who should carry out the appraisal? 6
How often should appraisals take place? 6
Should employees see their appraisal reports? 7
What are the legal considerations? 7
2 Making a success of appraisals 8

A checklist 8
3 Designing the appraisal system 11

What about the paperwork? 12
What is the purpose of the job description? 12
What are the different methods of performance appraisal? 12
4 Overcoming problems with performance appraisal 16

The ‘halo’ or ‘horns’ effect 16
Variations in reporting standards 16
Emphasis on the recent past 17
The central tendency 17
5 Assessing potential 18
Past performance 18
Self-assessment 19
Assessment centres 19
6 The appraisal interview 20

Preparing for the interview 20
The structure of the interview 21
During the interview 21
After the interview 22
1
7 Reward reviews 23
What are reward reviews? 23
What are the pros and cons of reward reviews? 23
What is the link between performance assessment and
reward reviews? 24
How can reward reviews be made to work successfully? 24
What are the types of reward review? 25
8 Conclusion 26
9 Appendix 1 – Appraisal – the legal considerations 27
10 Appendix 2 – Introducing appraisals – a checklist 29
11 Appendix 3 – Example of an appraisal scheme for

manual employees 31
12 Appendix 4 – Example of a rating scales scheme 34
13 Appendix 5 – Example of a comparison with

objectives scheme 40
14 Appendix 6 – Assessment of potential 44
15 Appendix 7 – Self-appraisal 46
16 Appendix 8 – Appraisal scheme review questionnaire 49
Notes 53
Suggested further reading 54
Acas publications 55
Acas training 56
Acas addresses Back cover
2 EMPLOYEE APPRAISAL
Introduction: 1
the general principles

Key points
• The main objectives of an appraisal system are usually to
review employees’ performance and potential. There may
also be a link with a reward review
• Appraisals can benefit both employers and employees by
improving job performance, by making it easier to identify
strengths and weaknesses and by determining suitability
for development
• In designing a scheme it is necessary to decide who
should be appraised; who does the appraising; how often
appraisals take place; and whether employees should see
their appraisal reports
• Employers are not required by law to introduce appraisal
schemes. There are however some aspects of employment
legislation that affect employee appraisal
What are appraisals? What are the objectives of

Appraisals regularly record an appraisals?
assessment of an employee’s The objectives of the appraisal
performance, potential and scheme should be determined
development needs. The appraisal before the system is designed in
is an opportunity to take an overall detail. The objectives, will to a large
view of work content, loads and extent, dictate the methods and
volume, to look back on what has performance criteria for appraisal so
been achieved during the reporting they should be discussed with
period and agree objectives for employees, managers and trade
the next. unions to obtain their views and
INTRODUCTION: THE GENERAL PRINCIPLES 3

commitment. The main objectives of What are the benefits of

an appraisal system are usually to appraisals?
review performance, potential and Appraisals can help to improve
identify training and career planning employees’ job performance by
needs. In addition the appraisal identifying strengths and weaknesses
system may be used to determine and determining how their strengths
whether employees should receive can be best utilised within the
an element of financial reward for organisation and weaknesses
their performance. overcome. They can help to reveal
problems which may be restricting
Performance reviews – give employees’ progress and causing
managers and employees inefficient work practices.
opportunities to discuss how
employees1 are progressing and to Some employers may talk to their
see what sort of improvements can employees regularly about their
be made or help given to build on problems and performance at work
their strengths and enable them to and may not therefore see the need
perform more effectively. for a formal appraisal system. Regular
dialogue between managers and their
Review of potential and development staff about work performance should,
needs – predicts the level and type of course, be encouraged. However,
of work that employees will be in the absence of a formal appraisal
capable of doing in the future and scheme, much will depend on the
how they can be best developed for attitude of individual managers. Some
the sake of their own career and to will give regular feedback on their
maximise their contribution to the employees’ performance and
organisation. potential while others will neglect this
responsibility. An appraisal system
Reward reviews – determine the can develop a greater degree of
‘rewards’ that employees will get for consistency by ensuring that
their past work. The reward review is managers and employees meet
usually a separate process from the formally and regularly to discuss
appraisal system but the review is performance and potential.
often assisted by information Experience shows this can encourage
provided by the performance better performance from employees.
appraisal.
Appraisals can also provide
information for human resource
planning to assist succession its success and clear about its

planning and to determine the objectives. A scheme will involve the 1
suitability of employees for investment of time and money.
promotion, for particular types of Managers will need to be trained to
employment and training. In addition carry out appraisal properly;
they can improve communications employees will need to be fully and
by giving employees an opportunity carefully informed about how it will
to talk about their ideas and affect them.
expectations and to be told how they
are progressing. This process can A badly designed appraisal system
also improve the quality of working operated by untrained and poorly
life by increasing mutual motivated managers, and hastily
understanding between managers introduced, will damage relationships
and employees. and provide no benefits.
Is a formal appraisal system Who should be appraised?

suitable for smaller In the past most appraisals have
companies? been carried out for ‘white collar’
employees. However this helps to
Smaller companies can certainly
perpetuate the feeling of ‘them and
benefit from having appropriate
us’. The appraisal of ‘blue collar’
appraisal systems. Indeed, the task
employees can improve their
of appraising employees is usually
motivation and can help them to
easier because managers are more
make useful suggestions about how
likely to know each employee well.
their jobs can operate more
It is important however that the
effectively. In addition growing
appraisal system is designed to meet
interest in flexible working practices,
the particular needs of the smaller
the harmonisation of terms and
company and is not over elaborate.
conditions of employment and the
An appraisal system does not need
growth of new technology have
to generate a lot of paper to be
blurred the differences between
effective; on the contrary the most
‘blue’ and ‘white collar’ workers and
effective systems are often the
many organisations are now
simplest.
extending the benefits of appraisal to
all employees. Appendix 3 gives an
No organisation, whether large or
example of an appraisal scheme
small, should contemplate the
which has been devised for manual
introduction of a formal appraisal
employees.
system unless it is fully committed to

Who should carry out the degree feedback’, sometimes known

appraisal? as ‘multi-source assessment’,
In most organisations employees are potentially offers a wider view of the
appraised by their immediate individual’s performance by taking
managers on the grounds that those into account comments from several
who delegate work and monitor sources such as peers,
performance are best placed to subordinates, other managers and
appraise performance. Others argue possibly customers. Successful
that appraisals carried out at a more introduction of this form of appraisal
senior level allow employees an is likely to depend on the culture of
opportunity to talk with higher the company and whether it is
management who, in turn, can find introduced with care, a clear idea of
out the views and attitudes of more how it will operate and what it is
junior staff at first hand. meant to achieve. It will need the
backing of individuals involved and
A better approach may be for any workforce representatives if it is
employees’ immediate superiors to to work successfully. It is most
write and carry out appraisals and for commonly used with managers and
more senior managers to have an may best be used as a way of
opportunity to comment on the helping individuals identify their
report. This enables senior managers development needs.
to keep a regular check on the
progress of staff and to monitor the
appraisal system to ensure that How often should appraisals
reporting standards are consistent. take place?
Employee appraisal should be a
Consideration of new approaches to continuous process and should not
carrying out appraisals may be a be limited to a formal review once a
natural consequence of other year. The frequency of formal
changes in the organisation such as appraisals will depend on the nature
teamworking, increased flexibility and of the organisation and on the
greater emphasis on the importance objectives of the system. For
of communication skills and example, in a high technology
relationships with people in the organisation objectives may be
workplace. ‘Upward appraisal’ gives changing quickly so that formal
employees the opportunity to appraisals may need to be carried
comment on the performance of out more than once a year. In an
their manager and may provide a environment which is less subject to
more balanced view of the change, annual appraisals may be
individual’s performance. ‘360 sufficient. Most employees receive a
formal appraisal annually, although managers have a tendency to be too

more frequent appraisals are often generous in an open reporting 1
needed for new employees, for system, this can be counteracted by
longer serving staff who have moved training, monitoring and by allowing
to new posts or for those who are more senior managers to comment
below acceptable performance on the reports2.
standards.
What are the legal

Should employees see their considerations?
appraisal reports? There is no legal obligation on
Employees should see all of their employers to introduce appraisal
appraisal reports. Employees should systems. However, organisations
have the opportunity to sign the need to be aware of some aspects
completed form and to express their of employment legislation that affect
views on the appraisal they have employee appraisal. An outline of the
received; in particular whether they legal considerations is contained in
feel it is a fair assessment of their Appendix 1.
work over the reporting period.
It is sometimes argued that ‘open

reporting’ discourages managers
from giving candid appraisals of staff.
In order to avoid conflict managers
may not accurately convey some of
the more critical comments they
have written on the report. However,
if employees are unable to see their
reports they will not know whether
the verbal feedback accurately
reflects what was put on the report
by the manager or the areas where
improvement is required. In practice,
managers are more likely to make
fair and accurate comments on the
appraisal form if they are aware that
the form will be shown to the
employee and that they will have to
substantiate their written comments
at the appraisal interview. Where

Making a
success of appraisals
Key points
For appraisal schemes to work effectively it is necessary to:
• Make sure that senior managers are fully committed to the
idea of appraisals
• Consult with managers, employees and trade union
representatives about the design and implementation of
appraisals before they are introduced
• Monitor schemes regularly
• Give appraisers adequate training to enable them to make
fair and objective assessments and to carry out effective
appraisal interviews
• Keep the scheme as simple and straightforward as possible
A checklist objectives and the appraisal

Senior managers must be methods. A pilot scheme should then
committed to the idea of appraisals be developed and tested among a
They should fully accept that those representative sample of managers
who carry out the appraisals will need and employees. Appendix 2 contains
to be properly trained and have a checklist of items which need to be
sufficient time and resources available considered before an appraisal
to complete interviews, fill in the system is introduced.
forms and carry out follow up work.
Make the scheme as
Consult with managers, employees straightforward as possible
and trade union representatives Appraisal systems can sometimes
before appraisals are introduced fail because of over-elaborate paper
They should be consulted, and work. It is essential to design the
agreement sought about the recording systems for those who will
be using them and to keep any reports with others in the training
forms as simple and as clearly group and to discuss any differences
written as possible. in markings. Trainees should also be
allowed to practise ‘mock’ appraisal
A timetable should be fixed for the interviews and to receive 2
implementation of the scheme constructive comments on their
All employees and trade union performance from tutors and from
representatives should be provided others in the group.
with written information describing
how appraisal will work and how it Make sure that managers carry out
will affect them. New employees will appraisals
need to be fully informed about the Some appraisal schemes fail simply
appraisal system as part of their because managers give low priority
induction. All employees should be to appraisals. A senior manager
briefed and told in writing about the should therefore be given
overall objectives of the scheme, responsibility for coordinating the
how the appraisal system will work scheme and for ensuring that
and what is expected of them interviews are held and that the
individually. It is useful to nominate forms are completed correctly. The
someone to answer employees’ appraisal of managers’ own
queries either directly or through their performance can usefully include
union representative. consideration of how effectively they
undertake appraisals. Some
Provide adequate training organisations set an annual timetable
All managers who carry out for the completion of various stages
appraisals must receive training to of the appraisal process and
help them assess performance circulate this timetable to all
effectively and to put that skill into appraisers. Another method is to
use in the appraisal process. spread appraisals throughout the
Appraisers should receive written year, possibly on the anniversary of
instructions on how to complete the employee’s appointment. This
reports and they should also be takes the pressure off the line
given the opportunity to practise manager to carry out a large number
these skills and to receive feedback of appraisals at the same time.
on their performance. It is a useful
training exercise for managers to Monitor the appraisal system
write employee appraisal reports Check that appraisals are being
which are based on case studies. carried out properly and determine
They should then be given the whether the system needs to be
opportunity to discuss their appraisal modified to meet the changing needs
MAKING A SUCCESS OF APPRAISALS 9

of the organisation. The views of

managers should be obtained about
the scheme in general and in relation
to any problems they have
encountered. It is also important to
get reactions from employees and
trade union representatives
concerning their experiences on
being appraised. Some organisations
use a questionnaire to obtain
employees’ views on the appraisal
system. An example of such a
questionnaire is at Appendix 8. The
formal appraisal system should be
updated regularly. Schemes will
become ineffective if they are not
modified to take account of changes
in the size of the organisation, in
products, skills and occupational
groupings or arising from the
introduction of new technology.
Designing the
appraisal system 2
Key points
3
• It is essential to have written records of the appraisal to

provide a feedback to employees and to allow more senior
managers to monitor the effectiveness of appraisals
• The job description helps to focus attention on the
employee’s performance at work and to avoid assessing
character
• Some appraisal techniques:
Rating – a number of employee characteristics are rated on
a scale which may range from ‘outstanding’ to
‘unacceptable’
Comparison with objectives – employees and their
managers agree objectives. The appraisal is based on how
far these objectives have been met
Critical incidents – the appraiser records incidents of
employees’ positive and negative behaviour during a given
period
Narrative report – the appraiser describes the individual’s
work performance in his or her own words
Behaviourally Anchored Rating Scales – a group of rating
scales is developed which is custom made for each job
• It is important to set up a procedure for employees to
appeal against their assessment
DESIGNING THE APPRAISAL SYSTEM 11

What about the paperwork? What is the purpose of the

Paperwork is not an end in itself but it job description?
is essential to have written records of A job title and a brief description of
the appraisal to provide a feedback to the main objectives and duties of the
employees and to allow more senior job should feature at the beginning of
managers to monitor the effectiveness the employee appraisal form. The job
of appraisals. The design of forms will description should be agreed
depend on the nature of the between the manager and the
organisation, the objectives of the employee and should estimate the
system and the employees to be percentage of time taken up with
appraised. However, most each of the duties. The job
performance appraisal forms should description should help appraisers to
contain provision for: focus attention on the employee’s
performance at work and to avoid
• basic personal details, that is; assessing character. An example of a
name, department, post, length of job description is given in Appendix 4.
time in the job
• job title What are the different methods

of performance appraisal?
• job description Rating
This method lists a number of factors
• a detailed review of the individual’s to be assessed such as quality and
performance against a set of output of work, which are then rated
job-related criteria on a numerical scale according to
level of performance, for example:
• an overall performance rating
1 outstanding
• general comments by a more
senior manager 2 exceeds requirements of the job
• comments by the employee 3 meets the requirements of the job
• a plan for development and action. 4 shows some minor weaknesses

In addition, there should be some 5 shows some significant
guidance notes explaining the weaknesses
objectives of the scheme and how
the appraisal interview should be 6 unacceptable.
conducted.
The rating scales method is easy to unforeseen circumstances. An

construct, use and understand. example of a comparison with
However, it is highly subjective, there objectives appraisal form is given in
is often a tendency to bunch the Appendix 5.
ratings around the average point and
an overall impression can influence lt is worth stressing that rating scales
all the individual assessments. An used alone do not always take full
example of a rating scales appraisal account of results, while the
3
is given in Appendix 4. objectives method can lack analysis
of performance. Some organisations
Comparison with objectives therefore combine the two methods
Under this system, the employee in their appraisal system.
and his or her manager agree
objectives at the beginning of the Critical incidents
appraisal period. The subsequent Using this method the appraiser is
appraisal is based on how far these required to record incidents of
objectives have been met. employees’ positive and negative
behaviour during a given period. The
This method is more objective than appraiser is expected to give
rating scales because the emphasis feedback on this behaviour when it
is on work achievement. It can be occurs whether it be to show
more participative because it gives appreciation of good performance or
employees the chance to agree their to give counselling to help poor
objectives and enables them to carry performance. The record of incidents
out a form of self-appraisal. On the throughout the year forms the basis
debit side, there may be some of the appraisal report. This method
employees who do not welcome the of appraisal encourages frequent
element of self-direction – because recording and enables employees’
they would rather be told what to do. performance to be judged on actual
incidents rather than on subjective
An important consideration in using assessments. It also helps to
this system is whether changes in overcome the problem of annual
circumstances which are beyond the reporting which can concentrate
individual’s control, such as the unduly on events immediately prior
economic environment, can result in to the appraisal.
objectives becoming unrealistic. It is
therefore wise to take stock, perhaps The critical incident method can,
mid way through a reporting period, however, be time consuming and
and decide whether there is a need burdensome and it can result in
to revise objectives because of overactive supervision; some

employees may feel that everything performance in the particular job.

they do is being observed and For example, for a departmental
recorded. In addition it may be an retail store manager a rating scale
inappropriate method of appraisal in could include ‘handling customer
jobs where there is little opportunity complaints’ and ‘meeting day-to-
to show initiative. The critical day deadlines’
incidents method is sometimes used
to supplement other techniques. • the same or a different group
provides examples of good, average
Narrative report and poor performance for each
This technique requires the appraiser category. For a retail store manager’s
to describe the individual’s work category in relation to deadlines, an
performance and behaviour in his or example of very good behaviour
her own words. The narrative report would be: ‘Could be expected never
may take the form of an essay or a to be late in meeting deadlines, no
controlled written report, such as matter how unusual the
answers to certain headings or circumstances’. An example of poor
guidelines. This approach is behaviour would be: ‘Could be
sometimes combined with rating expected to disregard due dates in
scales. Narrative reporting is flexible ordering and run out of a major line
and can enable the appraiser to gear in his or her department’
the report to specific circumstances.
However, its effectiveness depends • a number of such categories or
largely on the literary ability of the ‘anchors’ is generated and each is
appraiser. It is also difficult to make given a value ranging perhaps
comparison between employees from one (very poor behaviour) to
because entirely different factors may seven (outstanding behaviour). The
be assessed by different appraisers. number of categories to be rated
will vary according to the nature of
Behaviourally Anchored Rating the job but most schemes have
Scales (BARS) between six and nine
This method which overcomes some
of the problems with conventional • once the scheme is completed,
rating scales. appraisers use it to evaluate the
expected behaviour of each
• meetings are held with the person being rated. Individual
managers who will rate the people rating scales are constructed on
holding the job in question. These the basis of each job holder’s
managers are then asked to list typical or expected behaviour on
several key aspects of each scale.
The advantage of BARS is that the that there are problems with the
anchor scales are directly applicable appraisal system and a need for
to the job being evaluated and are further management training in
therefore more precise than the often appraisal techniques.
vague traits used in conventional
rating scales. On the other hand it is
costly and time consuming to
introduce.
3
Appeals
In order to preserve the credibility of
the appraisal scheme it is necessary
to set up a procedure for employees
to appeal against their assessment.
This may be through a special
procedure linked to the appraisal
system or through the grievance
procedure. The procedure should
provide for the employee to be
assisted by a union representative or
a representative of his or her choice3.
Appeals should be made to a more
senior manager than the appraiser.
In some organisations appeals are
made to a committee consisting of
management and union
representatives.
The appeals procedure should be

used only in exceptional
circumstances. The main aim of
appraisals is to help employees
improve their performance. The
appraisal system should not be used
to discipline poor performers nor as
a device for employees to negotiate
better markings or performance
payments through the appeals
procedure. Frequent use of the
appeals procedure could indicate

Overcoming problems
with performance appraisal
Key points
• Some of the inconsistencies associated with performance
appraisal can be overcome if senior managers have an
opportunity to comment upon and sign the appraisal
• A manager should be nominated to monitor and
coordinate the appraisal system
• Managers should keep running records on the
performance of their staff throughout the reporting period
• Suitable training will help to achieve consistency in
reporting standards
The ‘halo’ or ‘horns’ effect This problem can be resolved if the

In some cases, appraisers may allow appraiser judges all employees on a
the rating they give to one single factor or trait before going on
characteristic to excessively influence to the next factor. In this way it is
their ratings on all subsequent possible to consider all employees
factors. The appraiser who decides relative to a standard or to each
that the employee is good in one other on each factor.
important aspect and gives him or
her similarly high markings for all
other aspects is demonstrating the Variations in reporting
‘halo’ effect. Alternatively one serious
standards
fault can sometimes lead an
Some appraisers are either over
appraiser to reduce markings in
generous or too critical in their
other areas (the ‘horns’ effect).
markings. Reporting standards can
be evened out if senior managers
have an opportunity to confirm the
markings, make further comments The central tendency

and sign the appraisal, thereby Some appraisers are reluctant to rate
enabling them to compare reporting people at the outer ends of the rating
standards and to identify and scale, especially if the rating system
counsel any managers who appear has an odd number of rating points
to be too generous or too harsh in when there may be a tendency to
their reporting. mark employees in the middle scale.
Rating systems which have an even
The manager nominated to monitor number of scales (and therefore no
the appraisal system should also ‘middle scale’) have the merit of
seek to identify any variations in requiring raters to mark above or
reporting standards and offer help to below the ‘middle line’. 4
those managers who need it.
Suitable training will help to achieve
consistency in reporting standards.
Emphasis on the recent past There should also be guidance
Most appraisals report on a period of provided on the report form, which
one year. Some managers, when should contain an explanation of the
completing reports, may find it requirements of each part of the
difficult to recall and assess events report.
that occurred in the earlier part of the
reporting year. The lapse of time
tends to encourage an emphasis on
more recent events, which can
distort the balance of the report.
This problem can be resolved if

managers keep running records on
the performance of their staff and of
actual events which are evidence of
work performance. These notes will
provide a very valuable aide memoire
when the time comes for the reports
themselves to be written.
Alternatively managers may wish to
make an informal record half way
through the reporting period to help
them be objective in the end of year
assessment.
OVERCOMING PROBLEMS WITH PERFORMANCE APPRAISAL 17

Assessing
potential
Key points
Appraisal of employees’ potential can be based on:
• Past performance and observations from senior managers
or from several sources
• Employees’ assessment of their own potential and
performance
• Reports from assessment centres
It is not always easy to assess identifying potential. Managers may

employees’ potential for different have observed the individual only in a
kinds and levels of work because the narrow range of tasks, which may not
predictions are usually based on past necessarily be an indication of
performance, and jobs at higher suitability for higher level work.
levels may have different Whether someone has failed or been
performance demands. However, it is successful in a lower level job is
necessary to assess potential in relevant but not necessarily crucial to
order to determine how employees’ the assessment of his or her
aptitudes can be best utilised in the potential. Another possibility is to
organisation and to identify those write comments from several sources
who appear suitable for further such as colleagues, subordinates,
training and promotion. other managers or even customers.
Such a system would need to be
introduced with thought and
Past performance sensitivity (see pp8-9).
Reports from employees’ immediate
managers and observations from A section for reviewing potential
more senior managers are an sometimes appears on the
important although incomplete way of performance appraisal document.
It is however preferable to provide

a specially designed form, or at least
a separate section, with separate
instructions on how it is to be
completed. An example of a form for
assessing potential is given in
Appendix 6.
Self-assessment
Employees’ assessment of their own
performance and potential is
important, although highly subjective.
During appraisal interviews managers
should attempt to find out whether 5
employees are interested in different
kinds of work; where practicable this
should be followed by plans to
realise this potential through training
courses, assignments and planned
experience.
Assessment centres
There has been an increase in the
use of centres for assessing the
potential of staff. Assessment
centres are used by a number of
companies and staffed by trained
assessors, usually psychologists,
who use a variety of group and
individual psychometric tests in
assessing employees’ potential.
Assessment centres have an

advantage in that they are more
objective than other methods of
evaluating the potential of employees,
however, they are relatively expensive
and time-consuming.
ASSESSING POTENTIAL 19
The appraisal
interview
Key points
• Employees should be given adequate notice of the
appraisal interview. Self-assessment forms can help them
prepare
• At least one hour should be set aside for the interview
• Seating arrangements should be comfortable and the
interview free from interruptions
• The appraiser should suggest ways in which the
employee’s good work can be continued and how he or
she can achieve further improvement
• Both parties should discuss how far agreed objectives
have been met and agree future objectives
Preparing for the interview they do not have to be shown to the

Employees should be given person conducting the appraisal.
adequate notice of appraisal
interviews. Self-assessment forms An example of a self assessment
completed by employees before their form is given in Appendix 7.
interviews can help them note what
they think have been their strong and The manager should consider the
weak points; what they see as overall results attained by the
barriers to effective performance; employee and, where the results
their plans for the coming year; and have been significantly greater or
their development and training lower than expected, possible
needs. Self-assessment forms are an reasons for variations in
aide memoire to the individual and performance. This will be easier if
notes have been made throughout

the year of the employee’s
• if there are disagreements explain
how the employee can appeal
successes and failures, and any against his or her appraisal
performance related developments markings.
beyond the employee’s control.
At least one hour should be set During the interview

aside for the interview. The seating It is essential to ask questions that
should be comfortable and arranged draw out the employee’s reactions
to create an informal atmosphere. and ideas. Leading questions or
The interview should be free from questions which only require a ‘yes’
interruptions. or ‘no’ response should be avoided.
Managers should put employees at

The structure of the interview ease by beginning their interviews
The interviewer should: with fairly casual, routine remarks. It
is preferable to discuss employees’
• explain the purpose and scope of strong points first and to place 6
the interview emphasis on good work already
done. Employees should be
• discuss the job in terms of its encouraged to suggest ways in
objectives and demands which their good work can be
continued and their views sought on
• encourage the employee to how they can achieve further
discuss his or her strengths and improvement. Another way to start
weaknesses the interview is for managers to ask
employees what successes they feel
• discuss how far agreed objectives they have achieved during the past
have been met year and which things they are least
pleased with.
• agree future objectives
If it is necessary to improve
• discuss any development needs performance it will be counter
appropriate to the existing job or productive to gloss over employees’
the individual’s future in the weak points and stress their good
organisation, for example: training, features in order to make the
education, work experience interview as friendly as possible. It is
important to encourage employees
• summarise the plans which are to discuss their weaknesses openly
agreed and to encourage them to suggest
THE APPRAISAL INTERVIEW 21

ways in which they can improve.

Interviewers should not impose their
own solutions. These should emerge
as a result of joint discussion.
After the interview

Shortly after the interview the
manager should summarise in writing
the main points of the discussion
and the action which was agreed,
and give a copy to the employee.
If the appraisal scheme is to have
credibility, it is essential that
managers follow up any points
arising from the interview and carry
out any agreed action. For example,
it may be necessary to organise
training or help to overcome any
obstacles to the employee’s
effectiveness which were mentioned
at the interview.
Reward
reviews
Key points
• Reward reviews provide for salary increments, bonuses
and similar incentives to be awarded on the basis of an
employee’s performance
• There is usually a link with the appraisal system but the
reward review should take place at a different time from
the appraisal interview
• Employers should carefully examine their existing pay, 6
benefits and appraisal systems before they decide to
introduce reward reviews
7
• Consultation should take place with managers, employees
and trade unions, and agreement reached before such
schemes are introduced
Performance appraisal systems awarded on the basis of an

alone can motivate, improve employee’s performance. For
performance and create greater job example, appraisal-related pay is a
satisfaction without the inducement payment system where the employee
of additional reward. However, there receives an increase in pay based on
is increasing interest in reward regular and systematic assessment of
reviews and the links with his or her performance4.
performance assessment.
What are the pros and cons

What are reward reviews? of reward reviews?
Under this system salary increments, Reward reviews can be a cost
bonuses and similar incentives are
REWARD REVIEWS 23
effective method of motivating appraisal systems before they decide

employees by providing cash whether to introduce reward reviews.
incentives to effective performers. Such schemes will probably fail if they
They can also provide incentives to are introduced quickly with the aim of
those employees whose work is not shoring up ineffective payments
easily measurable. However, the systems or inadequate levels of pay.
assessments on which rewards are Conversely, a poor or inappropriate
based are usually subjective. Reward appraisal and rewards scheme can
reviews can also be divisive because distort or otherwise damage an
employees who do not receive effective pay system, create deep
payments may complain of dissatisfactions and demotivate.
favouritism and may eventually
become discouraged. Organisations should ensure that:
• consultation takes place with

What is the link between managers, employees and trade
performance assessment and unions, and agreement reached
reward reviews? before the scheme is introduced
The reward review is usually a
separate process from the appraisal • systems are relatively simple to
understand, operate and monitor
system but is often based on some
of the information provided by the
performance appraisal. Most • managers are properly trained and
have sufficient time available to
organisations carry out the appraisal
carry out the reviews
review at a separate time from the
reward review. The appraisal interview
is likely to be more constructive when • managers, employees and their
representatives are given clear
pay is not part of the discussion
information on how reward reviews
because the disclosure of the salary
review figure is likely to obscure a will operate
genuine discussion both of
achievements and of areas where • the appraisal system is kept
improvement is necessary. separate from the reward review
procedure
How can reward reviews be • the system is closely monitored by

more senior managers
made to work successfully?
Employers should carefully examine
their existing pay, benefits and
• employees have an opportunity to • pay increases based on

see and to make comments on performance ratings and awarded
their assessment markings by a series of fixed percentage
points. For example:
• an appeals procedure is available. % increase
Unsatisfactory 0
What are the types of reward
Satisfactory 2
review?
There are considerable variations in Above average 3.5
the types of reward review. Although
Excellent 5
some organisations have replaced
annual increments with merit only
increases, the most common practice • a lump sum payment which is not
is for a reward payment to supplement consolidated into the employee’s
‘across the board’ increases. salary.
Some examples of reward reviews are:
• fixed incremental scales with

limited flexibility. The 7
manager/supervisor agrees the
pay increase for the majority of his
or her staff but can increase
payments for exceptionally
effective staff or reduce the
payment for poor performers
• performance pay linked to an

incremental scale. Attainment of the
next point on the scale is dependent
on the employee reaching a
satisfactory performance rating
REWARD REVIEWS 25
Conclusion
Appraisals can benefit both • the purpose of appraisals and how
employers and employees. They can the system operates should be
improve employees’ job performance explained to those who are being
and suitability for promotion while at appraised
the same time helping to use labour
more effectively. In addition, they can • paperwork should be kept to a
improve communications and the minimum and appraisal forms
quality of working life and make should be simply and clearly
employees feel that they are valued designed
by the organisation.
• appraisal systems should be
The following will help to ensure that reviewed periodically to ensure
appraisals are both effective and they meet changing needs.
successful:
The introduction of a formal appraisal
• appraisals need the commitment system does not remove managers’
and support of all levels of responsibilities for reviewing
management performance on a day-to-day basis.
Employees should therefore be made
• managers and trade union aware of their strengths and
representatives should be weaknesses on a regular basis so
consulted before appraisals are that there are no surprises for them
introduced when they are formally appraised at
the end of the reporting period.
• appraisals should not be seen in
isolation but should be closely
linked with policies and practices
in other areas, such as human
resource planning, equal
opportunities, training and pay
• those responsible for appraisals

should receive adequate training to
enable them to make objective
assessments and to give them
confidence in carrying out effective
appraisal interviews
Appendix 1 –
Appraisal – the legal
considerations
Employers who recognise trade about him/her. The employer may
unions are required (if requested by make a charge of up to £10 for
the union) to disclose information5 for responding to each request.
the purposes of collective bargaining. Employers are entitled to protect third
In these circumstances, particularly parties, and to withhold any
where merit pay schemes are in information that might prejudice their
operation, they may be requested to business, but the general principles
explain how appraisal systems of the Act are that employees should
operate and to describe the criteria have access to personal information
against which employees are rated. and expect that the confidentiality of
this information is respected by the
The Data Protection Act 1998 covers employer6, individual and by
the processing and use of personal management, to remedy these
information. The Information deficiencies.
Commissioner – responsible for the
enforcement of the Act – has Under the Race Relations Act, Sex
8
produced four codes of practice to Discrimination Act and the
help employers comply with the act. Employment Equality Regulations,
Code 1 covers recruitment and employees who feel that they have
selection; Code 2 covers been refused promotion or access to 9
employment records; Code 3 covers training on grounds of their age,
monitoring at work; and Code 4 race, religion or belief, sex or sexual
covers information about a worker’s orientation have the right to make a
health (to see the codes visit complaint to an employment tribunal.
www.ico.gov.uk). Code of practice 2
on employment records covers The Disability Discrimination Act
computer records and some manual 1995 introduced a similar right for
records kept in structured form. disabled people treated less
Employees (prospective, past, favourably because of a reason
current) may request from an related to their disability, without a
employer what information is kept justifiable reason.
APPENDIX 1 27
In discrimination cases, appraisal Employees dismissed on grounds of

forms and procedures may be used inadequate performance and who
by employees to support their subsequently complain of unfair
complaints. It is important for dismissal sometimes indicate in their
employers to regularly monitor their applications that they have received
appraisal systems and promotions little or no indication of alleged
policies to ensure that criteria used unsatisfactory performance while in
to assess performance are non- employment.
discriminatory in terms of age, race,
sex, disability, religion or belief and Appraisal schemes should not be
sexual orientation. used as a disciplinary mechanism to
deal with unsatisfactory
The Commission for Racial Equality performance. The appraisal form is
(CRE) recommends7 that staff not the place to record details of
responsible for performance verbal or written disciplinary
appraisals should be told not to warnings. These should be recorded
discriminate on racial grounds. The separately as part of the disciplinary
Equal Opportunities Commission procedure. There should be space
(EOC) recommends8 that appraisal on the appraisal form to record
systems should assess actual unsatisfactory performance together
performance in the job (which is not with notes of action to be taken,
affected by the sex of the job holder). both by the individual and by
The EOC further advises employers management, to remedy these
to ensure that women are not rated deficiencies.
lower than men who are performing
at a comparable level. From October The Acas advisory handbook
2007, the Commission for Racial Discipline and grievances at work
Equality (CRE), the Equal gives advice on dealing with
Opportunities Commission (EOC) unsatisfactory performance.
and the Disability Rights Commission
(DRC) merged to form the Equality
and Human Rights Commission
(EHRC). More information is available
from www.equalityhumanrights.com/.
Appendix 2 –
Introducing appraisals – a
checklist
Why? What are the objectives?
I Assessment of past performance and the improvement of future

performance
I Assessment of future potential/promotability
I Assessment of training and development needs
I To assist reward review
How often?
I Annually
I Bi-annually
I Quarterly
I Other
What methods?
I Rating scales 9
I Comparisons with objectives
I Critical incidents 10
I Ranking
I Narrative report
I Behaviourally Anchored Rating Scales (BARS)
I Other/a mixture of the above methods
APPENDIX 2 29
Who is to be appraised?
I Managers
I Supervisors
I Scientists, technologists and technicans
I Sales and marketing
I Clerical
I Skilled
I Semi-skilled
I Unskilled
I Any other
Who should carry out the appraisals?
I Immediate supervisor
I More senior manager
I Self-assessment
I Personnel manager
I Any other
Should appraisals be ‘open’ or ‘closed’?
I ‘Open’
I ‘Closed’
I Partially open (that is: certain parts of the report not disclosed to the
employee)
Appendix 3 –
Example of an appraisal
scheme for manual employees
Name
Job title
Department
Length of time in post Date of appraisal
1 Job description (to be agreed with the employee)
2 Assessment of performance (tick as appropropriate)

A B C D
Supervisor’s Well ahead of More than Less than Unsatisfactory –
Comments standard satisfactory – satisfactory – below the
slightly above needs slight standard
job requirements improvement reasonably
expected
Volume of work I I I I
How does the Exceptionally Output is usually Output is Insufficient –
amount of work high output above average occasionally improvement
compare with the unsatisfactory needed needed
job requirements? 10
Job knowledge I I I I
Does the Exceptionally Good knowledge Lack of job Inadequate
employee have thorough of own job and knowledge knowledge of own 11
the knowledge to knowledge of own related work sometimes work
do the job and related work aspect hinders progress
properly?
Safety awareness I I I I
Consider in regard Highly motivated A good attitude Sometimes has Disregards basic
to safe working towards safety. to safety and to be reminded of safety precautions
practices Always insists on encourages others safety precautions
safe working likewise at work
practices
APPENDIX 3 31
2 Assessment of performance (tick as appropropriate) cont.

A B C D
Supervisor’s Well ahead of More than Less than Unsatisfactory –
Comments standard satisfactory – satisfactory – below the
slightly above needs slight standard
job requirements improvement reasonably
expected
Dependability I I I I
How well does Always thoroughly Little supervision Requires more Requires constant
the employee reliable required frequent checks supervision
follow than normal
procedures?
Teamwork I I I I
How well does the Works extremely Cooperative Usually gets along Uncooperative,
employee work well with others and flexible reasonably well resists change
with others to and responds but occasionally
accomplish the enthusiastically to unhelpful
goals of the job new challenges
and work group?
Attendance I I I I
and punctuality Exceptionally Attendance levels Absence and/or Frequently late
What is the punctual. are acceptable lateness levels are and/or absent
employee’s Rarely absent and is rarely late higher than average
pattern of
absence and
punctuality?
Work planning I I I I
Consider Displays excellent Organises work Needs to improve Does not plan
employee’s planning ability well some aspects of effectively
success in work planning
planning own
work
Communication I I I I
How effective is Exceptionally Usually a good Some difficulties Does not
the employee at effective in all communicator with written communicate
verbal and written written and verbal and/or verbal effectively
communication? communication communication
Overall marking I I I I
Well ahead of More than Less than Unsatisfactory –
standard satisfactory – satisfactory – below the standard
performance slightly above job needs slight reasonably
requirements improvement expected
General comments by supervisor on this assessment
Signed
General comments by supervisor manager
Signed
Comments by employee
Signed
Action plan agreed to develop employee and/or the job.

Include any training or counselling requirements
Career development – possible steps in career development
Agreed action plan – job and development objectives – timescale 11
APPENDIX 3 33
Appendix 4 –
Example of a rating scales
scheme
Name
Job title
Department
Overall performance
The objectives of this section are to provide the employee with clear
feedback about overall performance.
Check the box below which best summarises the employee’s overall
performance against work expectations. Your rating should consider: how
well work assignments were achieved; how the employee went about
achieving them; their difficulty; and what other results were achieved apart
from planned assignments. When possible, take into consideration your
experience with other employees in similar jobs and along the same factors.
The rating scale includes three ranges of acceptable and one level of
unacceptable performance, defined as follows:
I Exceeded Expectations
Achievements consistently exceeded objectives or requirements
I Achieved Expectations
Achievements consistently met the majority of objectives or requirements.
In some areas, accomplishments may have exceeded work expectations
whereas in others, they may occasionally have fallen slightly short;
however, the overall performance is acceptable for accomplishing
objectives or requirements
I Below Expectations
Achievements frequently did not meet several of the objectives or
requirements. With improvements in designated areas of the
development plan, this employee should perform at a more satisfactory
achievement level
I Not Acceptable
Achievements consistently fell below objectives or requirements.
Counselling and/or disciplinary action should be considered unless
improvement is shown
Job description (to be agreed with the employee)
Outline the main duties of the job and estimate the percentage of time which
is taken up with each duty.
Example:
Buyer – Department Store

Decide on range, type, quantity and quality of merchandise
to be bought. Visit trade fairs, shows etc and interview
representatives at store. (40%)
Place orders with appropriate suppliers endeavouring to
obtain the most advantageous terms possible. (20%)
Check that goods delivered are satisfactory and comply
with orders. (10%)
Decide on economic selling price for goods. (10%)

Monitor sales in store to determine repeat orders,
special sales promotions, or price reductions. (10%)
12
Keep appropriate records and prepare reports as required,
eg sales forecasts, budget estimates. (10%)
APPENDIX 4 35
Performance factors
This section enables you to describe in more detail how the employee goes
about achieving the results of the job by diagnosing relative strengths and
weaknesses along different performance factors. For each factor use the
COMMENTS space to give specific examples, typical of this employee’s
performance, which illustrate the effectiveness rating given and any factors
which have influenced performance.
Performance factor, definitions and comments

1 Volume of work – Volume of work done compared with the job
requirements
2 Quality of work – Accuracy and presentation of work
3 Knowledge of job – Understanding job procedures, equipment and

methods, responsibilities and scope of duties
4 Dependability – The degree to which this person can be counted upon to

do what is required in carrying out assigned tasks and to meet deadlines.
Include comments on attendance and punctuality
5 Innovation – The degree to which methods and policies are continuously

examined and suggestions made for new and better ones
6 Staff development – Consideration for subordinates shown; their

performance planned, monitored, appraised and developed
7 Communication – Ability to convey verbal and/or written information
8 Teamwork – Work relationships established with fellow employees within

and outside immediate work group
12
APPENDIX 4 37
Effectiveness rating summary

Performance factor High Medium Low Not acceptable
1 Volume of work
2 Quality of work
3 Knowledge of job
4 Dependability
5 Innovation
6 Staff development
7 Communications
8 Teamwork
Overall marking
I Exceeded I Achieved I Below I Not

expectations expectations expectations acceptable
Overall comments
Comments by senior manager
Work Improvement Plan

This section enables you to construct a work improvement plan for the
performance factors on which improvement is needed.
Performance Factor
Specific recommendations for improving employee’s current

job performance
Employee’s comments
This appraisal has been reviewed and discussed with the employee:
Employee Date
Manager Date
Countersigning manager Date 12
APPENDIX 4 39
Appendix 5 –
Example of a comparison
with objectives scheme
Name
Job title
Department
1 Job description (to be agreed with the employee)
2 Objectives for review period

Include any special tasks, personal training and development
3 Progress towards achievement of objectives and factors influencing

results 13
4 Other achievements
5 Were there any obstacles to the achievement of agreed objectives?
6 What steps can be taken to overcome these obstacles?
APPENDIX 5 41
7 Training, development, education

Undertaken during review period
Planned for period to next review
8 Summary of objectives for next annual review period
Overall performance rating

General performance
Overall rating
I Achievements outstanding
I Achievements exceeded the requirements of the job
I Some aspects of achievement below requirements
I Performance unacceptable at this level
Comments of reviewer
13
Signature Date
Comments of countersigning manager
Signature Date
Comments of employee
Signature Date
APPENDIX 5 43
Appendix 6 –
Assessment of potential
Name
Job title
Department
Section A – Assessment of potential
I Not fitted at present for further promotion

I Not fitted at present but likely to become fitted within the next two years
I Fitted for promotion
Section B – Employee’s aspirations

Describe employee’s career aspirations, noting relevant details about
interests, mobility, previous experience, etc.
Section C – Job experience

Does the employee display abilities which may make him/her a suitable
candidate for a job in the same grade but in a different discipline?
I YES I NO If ‘yes’, list job(s) identified
Section D – Training
Would further training or other development action be appropriate?
I YES I NO If ‘yes’, list job(s) identified

14
Reporting Manager Signed
Section E – Countersigning manager’s comments

Confirm whether the employee has/has not demonstrated suitability for
promotion. Explain any areas of disagreement with the reporting manager’s
assessment.
Signed
Section F – Employee’s comments on assessment of potential
Signed
APPENDIX 6 45
Appendix 7 –
Self-appraisal
Name
Department
Date of appraisal
Your next appraisal meeting will take place on:
Date Time
Place
Purpose of the appraisal meeting:

To enable you to discuss, with your manager, your job performance and your
future. The discussion should aim at a clearer understanding of:
(a) The main scope and purpose of your job
(b) Agreements on your objectives and tasks
(c) Standards or targets for measuring your performance
(d) Your training and future prospects
You can prepare for the meeting and discussion by completing this form.
You may show this form to your manager. This will give him or her time to
consider your problems and suggestions. If you do so, it will not be copied
or filed without your permission.
If you prefer, you can use this form for your own guidance only, and not
show it to anyone.
You will be given the opportunity to read the appraisal form prepared by your
manager; you will be able to add your comments, and sign the appraisal form.
Bring to the appraisal meeting:

• your current job description
• your current action plan
Self-appraisal
Name
1 Circle appropriate answers, and comment below

(a) Do you have an up-to-date job description? Yes No
(b) Do you have an up-to-date action plan? Yes No 15
(c) Do you understand all the requirements of your job? Yes No
(d) Do you have regular opportunities to discuss your work,

and action plans? Yes No
(e) Have you carried out the improvements agreed with your
manager which were made at the last appropriate meeting? Yes No
2 What have you accomplished, over and above the minimum

requirements of your job description, in the period under review
(consider the early part of the period as well as more recent events)?
Have you made any innovations?
3 List any difficulties you have in carrying out your work. Were there any
obstacles outside your own control which prevented you from
performing effectively?
APPENDIX 7 47
4 What parts of your job, do you:

(a) do best?
(b) do less well?
(c) have difficulty with?
(d) fail to enjoy?
5 Have you any skills, aptitudes, or knowledge not fully utilised in your
job? If so, what are they and how could they be used?
6 Can you suggest training which would help to improve your

performance or development?
7 Additional remarks, notes, questions, or suggestions
Appendix 8 –
Appraisal scheme review
questionnaire
15
Name (Leave blank if you wish)
Department/Business Centre
16
1 Objectives
1.1 What do you personally feel are the objectives of the scheme?
I To agree training needs
I To decide salary/cash award
I To review job performance during previous calendar year
I To discuss future career developments
I To set performance related objectives for the following 12 months

Tick any/all boxes you think apply
Add any other objectives you think are relevant:
1.2 Do you feel the objectives of the appraisal scheme were met?
I Yes I No I Partly
1.3 If the answer is ‘no’ or ‘partly’, in what way(s) were they not met?
APPENDIX 8 49
2 Timing and frequency
2.1 Should the reviews be held:

I as now? I or at some other time of the year?
If at some other time, when?
2.2 Should a formal review be held?

I Every six months? I Every 12 months? I Less frequently?
3 Appraiser preparation and style
3.1 To what extent did you feel the appraiser:

(a) Understood your job, competence, achievements and aspirations?
I Fully I Partly I Not at all
(b) Gave you the opportunity to share your views, ideas, and listened to
them effectively?
(c) Ensured that at the end of the interview both of you knew exactly
what action had been agreed?
3.2 Did any of the appraiser’s comments come to you as a surprise?

I YES I NO
If ‘yes’, please give example(s):
4 Follow-up action
4.1 Do you refer to the discussion notes/summary during the year eg: to
remind yourself of the objectives, training plans, amend the objectives,
for example?
I YES I NO
4.2 (appraisers only) If ‘yes’, what use do you make of the documentation
once the review has been completed?
16
4.3 (appraisees only) If ‘yes’, what use do you make of the documentation
once the review has been completed?
4.4 Do you formally discuss your performance progress etc, with your boss
other than at a your Annual Performance Review?
I YES I NO
4.5 Do you feel confident that the decisions that have been agreed during
the performance review discussion will be acted upon?
I YES I NO
APPENDIX 8 51
5 Career development
5.1 Do you feel the appraisal system is an adequate vehicle for determining
career progression and development needs?
I YES I NO
5.2 If ‘no’, how could it be adapted to do so?
6 Form design
6.1 Is the general design and layout of the appraisal form acceptable to
you?
I YES I NO
6.2 If ‘no’, please elaborate
7 General comments
7.1 What other comments, if any, do you have regarding the improvement/
acceptability of the process in general?
Notes
1. The terms employee and worker are generally used interchangeably in this
booklet but may have more specific meanings in relation to some
legislation – for instance, in the Working Time Regulations 1998, and the
Minimum Wage Act 1998 the term ‘worker’ is used to encompass
everyone who has a contract of employment (whether written or not), and
includes homeworkers, agency workers, casual workers, part-time
workers and so on. It excludes the genuinely self-employed. Definitions or
guidance on how such terms are used are usually produced by the 16
relevant government department. Where there is any doubt about who is
covered legal advice should be sought.
2. The Information Commissioner suggests that employees are shown all

information recorded in the appraisal system about them, with the
opportunity to comment as part of the record.
3. The Acas Code of practice on disciplinary and grievance procedures

provides for the right of accompaniment at certain grievance and
disciplinary hearings.
4. See Acas advisory booklet Appraisal related pay.
5. See Acas Code of Practice No 2 Disclosure of information to trade unions

for collective bargaining purposes.
6. The Office of the Data Protection Commissioner is at Wycliffe House,

Water Lane, Wilmslow, Cheshire, SK9 5AF. Tel 01625 545755,
website: www.dataprotection.gov.uk
7. CRE Race relations Code of Practice.*
8. EOC Guidelines for Equal Opportunities Employers visit www.eoc.org.uk.*
*From October 2007, the Commission for Racial Equality (CRE), the Equal
Opportunities Commission (EOC) and the Disability Rights Commission (DRC) merged
to form the Equality and Human Rights Commission (EHRC). More information is
available from www.equalityhumanrights.com/.
NOTES 53
Further information and

suggested further reading
Armstrong, Michael Incomes Data Services
Managing performance: performance Performance management
management in action London, IDS, 2003
London, CIPD, 2005 (IDS Study 748)
Armstrong, Michael Naisby, Alison

Performance management: key Appraisal and performance
strategies and practical guidelines management
London, Kogan Page, 2000 London, Spiro Press, 2002
Fletcher, Clive Ward, Peter

Appraisal and feedback: making 360-degree feedback
performance review work London, CIPD, 1997
London, CIPD, 2004
Work Foundation
Incomes Data Services Performance management
Appraisal systems London, Work Foundation, 1998
London, IDS, 1999 (Managing Best Practice 52)
(IDS Study 667)
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Performance Appraisal

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Performance Appraisal

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Employee

We advise and guide

We work with you

2 Making a success of appraisals 8

3 Designing the appraisal system 11

4 Overcoming problems with performance appraisal 16

6 The appraisal interview 20

9 Appendix 1 – Appraisal – the legal considerations 27

10 Appendix 2 – Introducing appraisals – a checklist 29

11 Appendix 3 – Example of an appraisal scheme for

12 Appendix 4 – Example of a rating scales scheme 34

13 Appendix 5 – Example of a comparison with

14 Appendix 6 – Assessment of potential 44

16 Appendix 8 – Appraisal scheme review questionnaire 49

Suggested further reading 54

Acas addresses Back cover

the general principles

What are appraisals? What are the objectives of

INTRODUCTION: THE GENERAL PRINCIPLES 3

commitment. The main objectives of What are the benefits of

planning to assist succession its success and clear about its

Is a formal appraisal system Who should be appraised?

INTRODUCTION: THE GENERAL PRINCIPLES 5

Who should carry out the degree feedback’, sometimes known

formal appraisal annually, although managers have a tendency to be too

What are the legal

It is sometimes argued that ‘open

INTRODUCTION: THE GENERAL PRINCIPLES 7

A checklist objectives and the appraisal

MAKING A SUCCESS OF APPRAISALS 9

of the organisation. The views of

• It is essential to have written records of the appraisal to

DESIGNING THE APPRAISAL SYSTEM 11

What about the paperwork? What is the purpose of the

• job title What are the different methods

• comments by the employee 3 meets the requirements of the job

• a plan for development and action. 4 shows some minor weaknesses

The rating scales method is easy to unforeseen circumstances. An

DESIGNING THE APPRAISAL SYSTEM 13

employees may feel that everything performance in the particular job.

The appeals procedure should be

DESIGNING THE APPRAISAL SYSTEM 15

The ‘halo’ or ‘horns’ effect This problem can be resolved if the

markings, make further comments The central tendency

This problem can be resolved if

OVERCOMING PROBLEMS WITH PERFORMANCE APPRAISAL 17

It is not always easy to assess identifying potential. Managers may

It is however preferable to provide

Assessment centres have an

Preparing for the interview they do not have to be shown to the

notes have been made throughout

At least one hour should be set During the interview

Managers should put employees at

THE APPRAISAL INTERVIEW 21

ways in which they can improve.

After the interview

Performance appraisal systems awarded on the basis of an

What are the pros and cons

effective method of motivating appraisal systems before they decide