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»Can you not guess what I mean and what I expect of you?« Whoever has already encountered this style of leadership can appreciate the value of transparency and clarity in the workplace. The employee appraisal is therefore an essential component of the management process.

The employee appraisal is normally an annual detailed and structured discussion in which long term goals and development are agreed upon by management and employees. Based on the principal »Management by objectives« business and individual objectives are affiliated. The focus of employee appraisals are on the one hand an appraisal of employee performance and the agreement of targets for the previous or coming work period, on the other hand the needs and personal satisfaction of the employee in his/her work environment.

Leadership is only effective when employees receive proper orientation. Thus the employee appraisal in conjunction with agreed targets is not only an employee orientated but also a very effective method of leadership. Whoever knows their own goals can find their own path and are not dependant on outside leadership. Ultimately, clear target agreements are an excellent foundation for performance evaluation and reward, which are essential components of employee appraisal. The minimum requirements of goals are always verifiability and an agreed timeline between employees and management. In the worst case goals are so imprecisely formulated, that in an appraisal their manner of achievement and verifiability cannot be established.

The question of appraisal criteria, with which performance can be evaluated, is of equal concern to employees and management. An individual can never be judged on his/her character  (there are no good or bad personalities), but only on his/her performance and attitude. Thus the establishment and comprehensibility of appraisal criteria is fundamental and must, to be fair, be already agreed upon in the employee appraisal discussion. The employee should always have the possibility of aligning his work practises to these targets. The agreements made in the appraisal thus give security to both employees and management. Moreover it is important that these goals are realistic and realizable, as well as being a motivating challenge for the individual. A positive attitude towards dialogue and openness in communication are prerequisites not only for employee appraisal but also for the entire work process.
 
In principle every manager can establish employee appraisals and target agreements, in order to bring more success to his/her own department and infuse energy into his/her team. However it is from the consultant’s viewpoint indispensable that employee appraisals are implemented and institutionalised in the entire organization.

The employee appraisal– tips for management

• Prepare in written form, so that the appraisal is properly structured and the employee is given a sense of his/her importance.
• Aim for a discussion basis of trust and partnership.
• Appreciate the importance of the employee’s concerns and take enough time for discussion.
• Reconsider your personal relationship with your employee: if the relationship is strained by hidden conflicts, then clear the issue before the appraisal to create a new foundation for future co-operation.
• Give constructive feedback by describing rather than evaluating, and be positive.
• Avoid hints or unclear statements, as well as generalizations or hearsay.
• Agree on realistic goals and make the criteria for achieving targets as transparent and comprehensible as possible beforehand.

The employee appraisal – tips for employees

• Use the appraisal as your opportunity for personal development and job advancement.
• Take enough time to prepare yourself, both for written preparation and for the discussion itself. 
• You are discussion partners, i.e. you are meeting management as a partner and are not a suppliant.
• Know your performances and successes of previous years just as well as your ideas and concrete suggestions for improvement over the next months.
• Have your arguments well prepared, and be ready to discuss your weaknesses and deficits. 
• Display that you are interested in the success of the firm, but also that you are supportive of management.
• Demonstrate your desire for further development and interest in further training.
• Seize the chance to procure a salary increase in line with your performance and agreed targets.

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