Overview of Performance Management and Annual Review Basics In Question & Answer Format

General Questions About Performance Management and Appraisal

• What Is Performance Management?
  To understand that performance management is NOT just an annual review is critical to making them valuable. We explain what performance MANAGEMENT entails.
• What Are The Components of A Performance Management System?
  Performance MANAGEMENT is a SYSTEM composed of a number of parts, the least important being the annual review. The power of the components COMBINED is what makes it powerful for employee engagement.
• What Is Performance Appraisal?
  A brief explanation of the term "performance appraisal", just in case you need it.
• What Is The Definition of "The Performance Review Meeting"
  Often considered a once a year event, the performance review meeting is the dreaded part of employee productivity discussions.
• What's The Difference Between Performance Management and Performance Appraisal?
  Performance MANAGEMENT and performance evaluations are often confused with each other. Evaluations, on their own, do little to improve the workplace. MANAGING PERFORMANCE, though, is a powerful toolbox.
• Is A Performance Review The Same As a Performance Appraisal?
  Well, pretty much, but the terminology is all over the block. Read for more.
• What Does "Data Gathering" Mean In Terms of Performance Management?
  Evaluation of performance, and the more important step of diagnosing roadblocks to performance really does require some data to operate upon. So, we explain what data gathering entails.
• Is Performance Management Related To Strategic Planning?
  One source of the "power" of performance management for improving overall organization productivity is the link to strategic planning. By cascading down the goals of the work unit and translating them into individual goals, one creates a clarity of purpose and much more meaningful work. A critical factor in increases employee engagement through helping staff understand the WHY of what they do.
• Is Performance Management Related To Employee Empowerment?
  See previous entry. You can't empower staff -- give them more decision making power, unless they understand overall purpose, and how their decisions fit in with the overall direction and purpose of the work unit and the organization as a whole. Clear goals mean better decisions.
• What Are The Purposes of Performance Management?
  Most people miss out on what performance management can accomplish because they are either unaware of, or misunderstand the purpose of performance management. We explain.
• Why Should Managers Even Bother to Do Performance Management?
  The short answer is that if managers focus on their prime focus - managing performance, success follows. In fact, managing performance is simply good management - getting things done THROUGH people.
• Are There Legal Reasons To Do Performance Management Correctly?
  There are, but the nature of the legal reasons is sometimes open to disagreement, since courts are a bit inconsistent. The prime legal issue, though is to protect companies from accusations of discrimination in promotions, firings and employee discipline (i.e. EEOC complaints).
• What IS MBO (Management by Objectives)
  We explain what MBO is. It's an "old" approach that has considerable merit, but it's a bit stuck in the industrial mindset, and requires updating and modification for it to work in the 2000's.
• What Is The Critical Incident Method of Performance Appraisal?
  The critical incident report is an underused, but efficient method for documenting performance, both good and bad.
• What Factors Make Performance Appraisals Legally Defensible?
  One reason why companies use performance appraisals and performance documentation is to prevent and defend against law suits from employees. Here's the rundown on what makes a review legally useful, because sometimes NO documentation is better than poor documentation.
• Why Does Most Performance Management, or Appraisal, Fail?
  The million dollar question, and there's lots of answers to explain why most appraisals don't have a positive effect. Read more.
• What Is Rater Bias?
  Since most review systems us some form of rating scales, it's important to understand the various biases that can affect all of us when rating employees during performance evaluations.
• Is It Possible To Make Employee Reviews Objective?
  The number one myth about reviews is that what we do gives an objective view of performance. It's possible to work around the subjectivity of ALL reviews. Read more.
• Is There A Cost To Poor Performance Management and Employee Reviews?
  Badly done performance reviews are often more damaging than having NO performance reviews. There are a number of hidden costs to badly done appraisals that you need to know about.
• What Are The Consequences of Poor Communication About Performance?
  Well, the most obvious is that you can't improve productivity without communication. So there's a bottom line cost to poor communication. There's more though, and the catchphrase is" Communication throughout the year is the key to success".
• What Is BARS (Behaviorally Anchored Rating Scales)
  Bars is an attempt to make evaluations clearer, more meaningful, and more "objective". Does it work?
• Should I Continue To Do Performance Management & Staff Appraisals Even If Pay Is Not Based On The Results?
  If you think the sole purpose of staff appraisals has to do with pay raises, you are probably not an effective manager. But the simple answer is, yes, you need to continue, because the value isn't in the raises, or salary or rewards. It's simply good management.
• What Is Employee Self-Appraisal?
  A brief explanation of using employee self-appraisal.
• What Are The Benefits of Employee Self Evaluation or Self Appraisal?
  It's important to help employees become able to evaluate themselves and their work all year long, because it reduces the amount of supervision employees require. Read more.
• Won't Employees Self Evaluate Themselves Unrealistically High?
  We address a common concern: that employees will evaluate themselves in an overly positive way. But they don't, the research suggests.