THE TEN STEPS TO

CONDUCTING AN
EFFECTIVE
PERFORMANCE
APPRAISAL

1987, Lawrence M. Bienati, Ph.D.

Revised, May 18, 1998
All Rights Reserved
www.onestophr.com

To Educate the World!

INTRODUCTION
Ken Blanchard, author of the best selling book, The One Minute Manager says,
"Feedback is the breakfast of champions."
Successful management-leaders realize that coaching is critical to attracting, retaining
and motivating successful employees. The performance appraisal event is a
misunderstood process. Often, it is not what is said or written, but how is said and
presented. This article presents successful techniques, strategies, text and communication
scripts for communicating performance coaching information.
Please review the document and follow the suggested script. Give us a call at
800.483.7153 or visit our website at www.onestophr.com for additional support
information.
Good luck on your journey!

Lawrence M. Bienati, Ph.D

THE PERFORMANCE APPRAISAL PROCESS

I.

Before The Appraisal

A. Step One: Define expectations for the job.
o
o
o

Is there a job description?

Have expectations of good performance been communicated? How?
When?
Are you confident that the employee knows what is expected?

B. Step Two: Observe performance. Have you conferred with other managers or
operations personnel with whom this person is likely to work? Do you have
specific behaviors to support the ratings and agrees on the appraisal form?
C. Step Three: Reviewed goals established from previous appraisals, if applicable.
Were the goals achieved? Were goals not achieved? Are there any developmental
areas established in the last review? Remember that the performance appraisal
process is ongoing; performance is reviewed daily, weekly, quarterly. There
should be no surprises during the review. One should not save all the problems
occurring in the previous 12 months and unload them during the appraisal. It is
hoped that most problems are addressed when they occur.
D. Step Four: Allow the employee to prepare a self-appraisal. Meet with the
employee one or two weeks prior to the appraisal. The following communication
is suggested:
"Mary, we have scheduled your appraisal for next week. I
would like you to complete an appraisal of how you see
your performance as it relates to the skill areas on the form.
Id also like you to identify skill areas that you feel identify
your major strengths plus any skill areas where you feel
additional development may be necessary. Be prepared to
discuss the progress in previous goals or developmental
areas established in our last review. Finally, identify at least
two goals for the coming 12-month period. Our goal is to
compare our forms so that I can objectively discuss your
performance." (Ensure form is understood and how skill
ratings are evaluatedclear up perceptions from the
beginning).
II.

Opening The Appraisal Meeting

A. Step Five: The following verbal and nonverbal skills are important
when setting the proper climate factors for the evaluation.

1. The goal of the appraisal is to maintain a

relaxed mood so that proper communication
and trust will occur. This relaxed mood is
related to how you present your
communication in both the verbal and
nonverbal sense. It is important to realize
that this is not a "military inquisition." You
are conducting a business meeting to
provide feedback to your employee on job
performance. Above all, be yourself.
2. The following nonverbals are important:
a. Eye Contact. Look directly at the employee
when speaking; nod your head; smile when
appropriate; display interest.
b. Nearness. Sit at a close, comfortable
distance. Avoid sitting behind large desks.
c. Posture. Sit straight; be attentive; maintain a
symmetrical posture with employee.
1. The following verbals are important:
a. Small Talk. "Break the ice" initially; talk
about family, a recent happening. Each
employee is different; use whatever
approach will build rapport and reduce
nervousness. Some employees prefer a
direct "strictly business approach."
b. Prods. Acknowledge listening. "Uh huhI
seeHmmmGo onTell me more about
that." Use open-ended questions like why,
how, when, where; get employee to talk.
c. Speak Positively. Compliment; show
appreciation; acknowledge where
appropriate.

III.

The Appraisal Begins

A. Step Six: State purpose and objectives of the appraisal.
1. The primary purpose of an appraisal is three-fold:
o
o
o

Provide feedback on performance

Increase your job satisfaction
Help strengthen the employees skill areas

The following open communication is suggested:

"Mary, we have both had an opportunity to complete our appraisal forms."
"The best way to conduct this
meeting is to have you
present your self-appraisal
first by reviewing each skill
area one at a time. Once you
have done this, I would like
you to identify the skill areas
you feel may need additional
development. While you are
doing this, I will be listening
and recording some notes.
Where appropriate, I may ask
you question to clarify your
responses."
"After you present your
assessment, I will present my
assessment of the skill areas.
We will address the skill
areas where we have
agreement first, followed by
the skill rating where we
differ. We will openly discuss
these areas in an effort to
reach consensus."
"Finally, We will review
previous
accomplishments/goals
established during the last
review. We will then set the
necessary goals to strengthen

any developmental areas. Do

you have any questions,
Mary? (Allow time for
response). Okay, lets
proceed"
Note: You will find this
approach to be quite
effective. There is a higher
level of commitment when
the employee is allowed to
participate. They will
generally identify
developmental areas first and
tend to underrate their skills.
B. Step Seven: Techniques for presenting information
The following techniques may prove helpful in presenting
information during the performance appraisal. You may
reference the attachment entitled "Cause and Effect
Relations in Three Types of Appraisal Interviews."
(C.O.R.E. Corp., 1987)
At this point of the appraisal, the employee has presented
his or her assessment. There will be areas of agreement and
(perhaps) disagreement. The areas of agreement are easy;
the challenge comes in communicating areas of
disagreement in such a way that the employee will accept
your recommendations. The following approaches, or
combinations thereof, may be helpful:
1. The Tell-and-Sell Technique. This is used to persuade an employee to
improve. This may be used nicely in skill areas where both parties have
agreement. The employee is aware of developmental areas and wishes to
correct them. You provide evidence and counsel on how the employee can
change behavior for the better.
2. The Tell-and Listen Technique. The employee is defensive and may
disagree with an aspect of the evaluation. Use listening rather than selling
skills. People will change if defensive feelings are released. Make a
statement to the employee about the behavior; allow employee to
comment; ask probing questions; summarize feelings. Once both parties
understand each other, then agree on a way to correct.
3. The Problem Solving Technique. A helper of sorts. The employee does
not recognize a problem in behavior or asks for your assistance in
correcting. You will jointly analyze the problem together; probe for

reasons; ask questions; make and ask for suggestions. Essentially, you
jointly solve the problems together and develop an action plan to correct
it.
Note: These techniques may work in
tandem; that is, a tell-and-listen technique
may work into problem solving. Or, a telland-listen may work into a tell-and-sell if
there is no agreement. It all depends.

C. Step Eight: Set goals and develop action plan

Once you have reviewed each skill area and reached some
form of consensus, you are ready to establish
developmental goals. Do not be disappointed if the
employee does not agree with your recommendations
despite all of these wonderful strategies. You may have to
change the focus and simply provide direction on what you
expect. Try and turn things into a positive format by
demonstrating your sincere willingness to help them
strengthen any developmental areas. (See constructive
Conversation Catalysts).
1. Allow the employee to discuss the goals they had set prior to the
evaluation. Have the employee explain:
o
o
o
o

What is their goal (in specific terms)?

How can it be achieved?
When do they expect to achieve it?
Why it is important to their continued success?

1. Once the employee identifies the goals (some may not), then proceed with
an explanation of your goals. Avoid directive phrases such as "you will."
Use phrases like "I would like," "How do you feel about?" "What is your
best estimate, Mary, on when we can achieve this?" If they agree, terrific.
If not, present your goals. (Refer to attachment entitled "Checklist for
Setting Good Objectives." All goals should satisfy the four-step criteria
established above).
D. Step Nine: Set date for next review
It is important to close the interview on a positive note. Set
the date for the next review and set up a monitoring system
for goal achievement. Advise the employee that you will be

transferring information to a new form, and they will be

allowed to offer comments.
E. Step Ten: Deliver what you promise
Monitor performance regularly to ensure goals are
achieved. Dont wait until next year. Performance is
evaluated daily. It has been said that feedback is the
breakfast of champions!

ATTACHMENTS
Attachment 1: Checklist for Good Objectives
Attachment 2: The Checklist for Good Objectives
Attachment 3: Cause and Effect for Different
Types of Appraisal Interviews
Attachment 4: Common Evaluation Errors
Attachment 5: Performance Appraisal Subpoena

Attachment 1
CHECKLIST FOR GOOD OBJECTIVES

When preparing your list of possible goals when recording

goals, consider the following points:

Do the objectives contain the four critical elements?

Specific
Measurable

 Time bound completion dates

Result oriented

Is each objective stated as a result to be achieved?

Is the objective traceable to the goals and your responsibility?

Have you assessed the degree of difficulty for each objective? Do you have a
reasonable balance of high risk and low risk objectives?

Have you thought about the major actions to be taken to achieve the objectives?

Completion dates: Have you identified potential problems and developed

contingency plans?

Have you identified the consequences that your achievement of these objectives
will have?
The Key to Good Objectives
(sample approach)
A well written objective will state what results you expect
to accomplish, how and by when.
Example:
WHAT (Specific) Mary, I feel you need to strengthen your
public speaking ability.
HOW (Measurable) Attend a Dale Carnegie course.
WHEN (Time Bound) By September 1997.
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s
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This approach should be followed when setting goals on the performance evaluation
form. This will ensure that the goal is properly communicated and completed.

Attachment 2

CAUSE AND EFFECT RELATIONS IN THREE TYPES OF APPRAISAL

INTERVIEWS
METHOD
ROLE OF
INTERVIEWER:
Objective

Tell-and-Sell

Tell-and-Listen

Problem Solving

Judge

Judge

Helper

-To communicate evaluation

-To communicate
evaluation

-To persuade employee to improve

-To release defensive
feelings
Assumptions

-Employee desires to correct

weaknesses if he knows them

-People will change if

defensive feelings are
removed

-Any person can improve if he so

chooses

-Defensive behavior suppressed

-Growth can occur

without correcting
faults
-Discussing job
problems leads to
improved
performance

-A superior is qualified to evaluate

a subordinate
Reactions

-To stimulate
growth and
development in
employee

-Defensive behavior
expressed

-Attempts to cover hostility

-Employee feels
accepted

-Problem solving
behavior

Skills

-Salesmanship

-Listening and
reflecting feelings

-Listening and
reflecting feelings

-Summarizing

-Reflecting ideas

-Patience
-Using exploratory
questions
-Summarizing
Attitude

-People profit from criticism

-One can respect the

-Discussion
feelings of others if one develops new
understands them
ideas and mutual
interests

Motivation

-Use of positive or negative

incentives or both

-Resistance to change
reduced

-Increased
freedom

(Extrinsic in that motivation is

added to the job itself)

-Positive incentive
(Extrinsic and some
intrinsic motivation)

-Increased
responsibility
(Intrinsic in that
interest is inherent
in the task)

Gains

-Success most probable when

employee respects interviewer

-Develops favorable
attitude to superior
which increases
probability of success

-Almost

Risks

-Success most probable when

employee respects interviewer

-Develops favorable
attitude to superior
which increases
probability of success

-Almost assured
of improvement in
some respect

Values

-Perpetuates existing practices and

values

-Permits interviewer to -Both learn since

change his view in light experience and
of the employees
views are pooled
responses
-Change is
-Some upward
facilitated
communication

Attachment 3
COMMON EVALUATION ERRORS
In any evaluation process there is a tendency to make certain errors that can lead to
inaccurate ratings. The following paragraphs present the six errors that evaluators are
most likely to make when rating a participant.
1. Contract Effect
The tendency to compare an employee against other employees instead of
according to the specific requirements of the job. To avoid contrast effect,
concentrate on how the employees performance compares to the
behaviors listed in the skill guide.
2. The Halo Effect
The tendency to allow one good (or bad) skill or characteristic about the
employee to influence the overall evaluation. Remember that because one
skill is good or poor, it does not necessarily follow that others will be the
same. When evaluating a skill, focus only on the employees performance
in that particular area.
3. Stereotyping
The tendency to overgeneralize about the characteristics of capabilities of
a specific group. The evaluator must rate each employee solely on his or
her observed performance.
4. Similar-To-Me-Effect
The tendency to give some employees higher ratings (regardless of their
qualifications) because they are similar to the evaluator. Alternatively,
giving those employees a lower rating because they are much different
than the evaluator. To avoid the similar-to-me-effect, rely solely on
observed performance in making evaluations.
5. Central Tendency
The tendency to play it safe and rate in the middle of the scale because
you are not sure of your evaluation of the employee. Make sure you get
the information you need to make confident rating decisions.
6. Negative and Positive Leniency

The tendency to be too hard or easy in evaluations across all management

skills. To avoid this error, use frequent and distinct behavioral examples to
both classify and rate dimensions.

acknowledgment
The author acknowledges the excellent work of Dr. Lawrence M. Fogli, President,
C.O.R.E., Corp., 367 Civic Drive, Pleasant Hill, California. Certain excerpts from his
publication were incorporated in this guide.