Strategic Objectives in Performance Appraisals

In order for an employee performance appraisal to be effective, you need to have strategic objectives you would like to accomplish before starting the appraisal, according to management expert Josh Greenberg writing on the Performance Appraisals website. Plan out your performance appraisals, and help employees prepare for their appraisals as well. An interactive appraisal can be more productive than a one-way review.


An interactive performance appraisal allows the manager and the employee to design a plan to help the employee reach her goals. To give these plans strategic value, there must be deadlines and time periods assigned to them. Allowing an employee to try to achieve her appraisal plans without a timeline does not offer motivation for the employee to address the issues immediately. Getting employees to address performance issues that are raised in appraisals can help increase company productivity on a timetable that is beneficial to the corporate bottom line.


An employee that is not productive and is having problems creating value for the company is not one that you want around for an extended period of time. However, the investments in recruiting efforts and training make it necessary to attempt to improve employees with deficient performance records. The manager of employees that are performing below acceptable performance levels should enter into each appraisal with defined plans for improvement that can be enacted immediately.


Talented and productive employees are important to the success and future growth of your company. That is why there should be a strategic plan prior to the appraisal of each valued employee that will help retain those employees. If a pay raise is budgeted, it should be part of the employee's performance appraisal. The manager should spend time discussing the employee's career advancement with the company, and get employee input on where he would like to see his career go with the company. Ongoing trainings and assistance with the employee's education should all be part of the strategic attempt to keep good employees with a performance appraisal.


Part of the departmental budgets for each company is compensation for current employees, and the money set aside to hire new talent. It requires strategic planning to determine what kinds of compensation increases, or decreases, should be offered to employees to keep the company within budget, according to the employment experts at the Management Study Guide website. Alternative pay increases such as stock options or bonus programs can help to offer employees incentive without having an adverse affect on departmental budgets.