Developmental Performance Appraisals: Making Business Better

BY HELEN TSOTSOS

As a business leader, one of the most challenging tasks you may encounter is how to address and improve performance. Whether it’s lateness, poor sales performance or the inefficient delivery of assigned tasks, it’s safe to say that things won’t begin to change unless issues are confronted head on. Developmental performance appraisals are essential tools to focus on and enhance actions or behaviors. These types of appraisals incorporate a coaching style that is supportive and collaborative while working towards increasing overall effectiveness.

Performance appraisals have their drawbacks. One of the most significant concerns is that they reflect assessor biases. It is crucial for the supervisor to be self-aware and to be clear on assessment criteria. In all fairness, these criteria should be made known to the persons being assessed prior to the session. Not only that, performance problems may be due to a failure in selection, communication or training.

However, developmental appraisals do provide vital opportunities to shine the spotlight on essential work activities and goals, to identify and improve on problem behaviors and to encourage optimum performance. They provide a platform to discuss, develop and improve not only the individual, but also the organization.

There can be a lot of ground to cover in performance evaluations. Standard topics can include the following:

• Adaptability: to change, openness to new ideas, taking on responsibility, handling change
• Customer Focus: customer satisfaction, solving problems, meeting commitments
• Communication: appearance, verbal, written, interpersonal, listening skills
• Dependability: meeting commitments, work standards, accountability, working independently
• Quality: commitment, attention to detail, focus on continuous improvement, ownership
• Teamwork: promoting mutual respect, conflict resolution, open exchange of opinions and ideas
• Sales Performance: product knowledge, sales goals, sales skills, understanding client needs

Performance appraisals can be positive experiences. Never, ever make it about disciplining or warning. Appraisals provide a forum for assessment and feedback to get the best out of people and processes. Whether it’s a formal annual review or an informal one-on-one review discussion, encourage open dialogue. Research studies show that employees not only feel more satisfied with their appraisals, but they’re better able to meet performance goals when they can talk freely (Nemeroff and Wexley, Journal of Occupational Psychology, 1979).

Frame questions to promote discussion. Some examples are “what would you consider to be you most important achievements in the last year”, “what elements of your job do you most enjoy and least enjoy”, “what would you like to do differently”, “what action could be taken to improve your performance by you and/or management” and “what training/experience would you benefit from in the next year”.

To get started, first and foremost, get prepared. Be clear on your intention—is it constructive or destructive criticism you’re offering? Employees are more likely to use feedback when they believe the appraisers intentions are helpful and constructive. Alternatively, you may risk conflict in the workplace rooted in anger, tension and resentment, where feedback is construed as criticism.

If you’ve been observing and recording specific performance issues, this is a great place to get started. Get other people’s input too. Customers, colleagues, suppliers and others can offer valuable insights. Even have your employee self-assess their accomplishments, areas for improvement and progress. If prior appraisals have been conducted, be sure to check in and acknowledge any improvement. Or, you may need to dig a little further and discover what stood in the way of bettering the situation. It will help you to define clear and specific goals. Management theories support the effectiveness of clear goals as motivational forces.

Always start appraisal meetings with positive feedback. Be sensitive to the feelings of your employees. Being called to a meeting with your boss can invoke serious stress and anxiety and make one feel like they are under a microscope. Note any unique contributions or accomplishments that this individual has made. This is an opportunity to focus on job requirements and how to improve future actions. Collaborate with your employee to develop solutions.

Allow the conversation to be two-way. In other words, this isn’t just about telling, it’s about listening too. Encourage responses and suggestions, especially when it comes to designing plans or solutions. If there is a point at which there is disagreement, it’s important to listen without arguing or defending your perspective. As you stay open to hearing what the other person is saying, you may want to be prepared to change your point of view.

Mutual agreement is the final goal of any appraisal. When performance is not up to par, be sure that expected behaviors and actions are well defined. Focus on one or two major areas and set clear goals, action plans and timelines. An example of this may be to increase last quarter’s sales results by 15 per cent by the end of the upcoming quarter. Working with employees to effectively set objectives fosters a sense of cooperation and contributes to morale and higher productivity. It’s sends the message that they’re worth it.

When problems are severe, or the employee has consistently failed to demonstrate improvement, the employee must be made clear of the consequences. Be sure to include a written explanation of these consequences. This may include anything from effects on pay increases to termination.

The value of this purposeful interaction must not be underestimated. Not only does it impact employee motivation and satisfaction, it opens up opportunities for individual and organizational evolution. It links employee goals to your business goals. Consolidated appraisal data may help paint a bigger picture of where there are gaps in skills, knowledge and behaviors altogether so that training and development is focused and efficient. This data can also help determine whether the general quality of the workforce is getting better, staying steady or declining.

Stay better informed. Developmental performance appraisals will keep you up-to-date on the activities of your people and the needs of your business. Not only that, you’ll be more in touch with clients, competitors, markets and more. What have you got to lose?

Helen Tsotsos is an Adler Certified Professional Coach (ACPC), an entrepreneur, a certified trainer and leader. She has partnered 20 years of success as a day spa owner with her Business Coaching practice to serve the industry she knows and loves. Helen understands the needs and challenges of spa professionals and uses her practical wisdom, experience and education to motivate and inspire her clients through change and growth. She has worked with business leaders, managers and executives to support and enhance personal and professional success through powerful visioning, creative strategies and effective action plans. For more information on individual and group coaching, customized training programs and workshops, please contact Helen at (416) 466-1541 or email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit www.successdynamics.ca.

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