It’s important that every performance process be approached as a golden opportunity to give employees feedback about their performances over a certain period of time. Listen to what your employees have to say and give feedback that can help them correct performance problems. Often managers forget to record employee performances throughout the year, and rely solely on their memory. This is never a good idea, as people can only remember a few weeks back, or one single incident (good or bad) to color their assessment.
The main problem with performance appraisals is that often managers make the process a lot harder than it needs to be. When rushed and incorrectly done, appraisals lack ineffectiveness and can hinder productivity. It's imperative that performance evaluation encourage growth and professional development.
Employee development should be viewed as either as an advancement process (i.e. shaping the employee for a new role) or for improvement (i.e. giving the tools needed to perform, develop and growth within their roles). A performance review provides a roadmap for the employee and assists employees by getting them on the right track. It’s vital that a company keeps focus on its overall objectives and goals. If an employee deviates, it could cause a problem further along the line.
All reviews must have positive and constructive elements. Positive feedback should reflect performances the employee has shown improvement in. For example, If the employee has shown signs of improvement in the quality or quantity of work, praise this effort. Constructive feedback should not be negative, and seen as an opportunity to grow. If the employee has failed to grasp something, or failed to achieve specific goals, find out why they didn’t reach these and try come up with ways to rectify the problems.
There are many tools that can assist managers to prepare for employee appraisals, but keep in mind that specific tools and measures vary from company to company. Adopt a review system that is conducive to culture of the company. The most common tool can be attendance and punctuality policies, job descriptions, previous reviews, etc.