Appraisals (sometimes called performance reviews) have been going on for years in every workplace, but only now are they getting more and more formal in the way our performance is managed. Years ago, a pat on the back and "you're going a good job" complete with a pay rise, could be considered a good appraisal. In today's competitive business market, it's important to learn how to performance manage in a measurable way, bearing in mind other areas such as individual employee needs, extraneous circumstances and how goals differ in different job roles.

Goals and objectives

There are two considerations here: the goals of the business or project and the goals of the individual. It's a skill to balance the two. Let's say that your next project is to hold an annual conference. The date is likely to be set in stone if it coincides with legal obligations such as the Annual General Meeting. Look at the timescale with your employee to work out deadlines and milestones before the big day. Note that performance management reviews don't have to be once a year, in fact it might be more productive to hold them quarterly, for example. This will help you, as a manager, to spot if goals are not being reached (and why) and see if a plan is going off-track far in advance of any deadline.

Individual goals for the employee are just as important as the company's long term aim. If someone feels valued, invested in and spurred on by their company, their motivation and morale is likely to take them further. Too many managers make the mistake of telling a person what their goals should be, instead of asking them to make the personal goals and milestones themselves. Ask your employee to tell you what they would consider a goal. Some might surprise you.

Remember that different goals mean different things, to different people. Let's say for example that you have an employee who is suffering from stress at work. Part of the performance review could include them keeping a "stress diary" when they are feeling that things are getting on top of them, they write it down. A goal could be to reduce the level or frequency of stress over the working year by collaborating with you, the line manager. Another example could be related to disability - if you have someone who is undergoing speech therapy for a stammer, then their challenge may be to make more phone calls - something not considered a goal by other staff, but which could be a real confidence-inspiring milestone to this employee.

Measuring performance and dealing with underperformance

"Being busy doesn't mean being productive" is a quote often told by managers who find that although their employee seems to be having a full day, very little tangible work gets done. There is also confusion about how to measure performance - meeting goals and expectations should be the minimum - praise and promotions come from exceeding. This kind of confusion stems from cultures such as those who tip for simply doing a job, rather than doing it excellently or truly going out of one's way.

Your employee can be praised for keeping on track, but it's the over performers and exceeders that really need to be rewarded, both to thank them and to inspire others.

If you have an underperforming employee, it can be a sensitive and difficult issue. Was the bar set too high at their last performance review, or is there a real struggle to meet the needs of their job? Goals should be set bearing in mind that some external factors might need addressing. Are they always working late but not producing enough work? Maybe some time management training might help. Are they having problems outside of work that is affecting them, rather than lack of ability? A one to one with a stress management plan might work. If you don't think your employee is performing - most will accept it and want to improve, if dealt with in a non-critical way with positive encouragement.

It's not easy managing people and their performance, but with a little practise and training you can make the review and appraisal process easier, more streamlined, and the whole workforce more productive as a result.