A proper performance appraisal should end in a valuation on how the employee meets the targets. Also setting the targets, and knowing the developement needs for the next period, but this post is to talk about the performance of the last period.
The basic of the performance appraisal meeting is to have an open discussion about the main targets, and the level of performance in reaching such targets. When participating in a yearly meeting, the employee and the manager must check the main facts of the previous year, going through each one of the agreed goals and the related valuation parameters or kpi’s.
The next step is to agree on the level of consecution, which means agree on what both understand as high or low performance, taking into consideration that the individual targets must be aligned to the corporative ones, but there is some room for individual fine-tuning, which must be known by the employee.
If the valuation uses a 5 level ranking, this should be:
1- Does not meets with the required performance
2- Partially meets
3- Meets
4- Sometimes exceed
5- Greatly exceeds
Some employees are disapointed when receiving a 3, when this is not the result for an “average employee” , but the result for a good employee delivering the expected performance.
In the next step, the manager must think about the potential of the employee, understanding "potential" as the growth capacity, and look at the following matrix, were in each bin there is a classification, a description of the situation and a proposal for responding to the employee needs.
Certainly, there is only one situation in which we are talking about a pure low performer, when we have low performance and low potential, because it is noticeable that in any other option of low performance or low potential there is a positive expectation of improvement.
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