Performance appraisals of employees can take many forms, both formal and informal. Appraisals can be used to motivate your staff, as well as to improve poor performance and recognize good performance. They are a vital part of coaching your staff to peak performance.
Formal or Informal
Not all performance appraisals have to be formal. Simply praising an employee's performance on a specific task as you walk past him can be an effective means of building morale and encouraging high performance.
When you give your employees an opportunity to learn what an excellent job looks like, their morale will increase because they will then be able to do a good job.
Encouraging High Performance
You can expect employees to do a good job only if you provide the coaching and mentoring they need. In addition, when an employee is seen doing a good job and receiving kudos for it, other employees may try to emulate her.
Although financial compensation is rarely turned down, surveys have shown that money is not often the biggest motivator for employees. Generally, knowing what is expected and being given the freedom to find the best way to achieve goals are more important in providing job satisfaction.
Formal appraisals should be done at least annually, though quarterly reviews are encouraged. Informal appraisals can be done daily, whenever you see an employee doing well or see an area where coaching can improve performance. Don't pass up the opportunity when it arises.
The Boss' Performance
Your employees should be given the opportunity to evaluate your performance. This portion of the performance appraisal allows your employees to tell you how you can help them achieve greater success, which ultimately will make your business more successful.