No employee should be surprised by their appraisal. If the year-end result comes as a shock to them, the failure is in the follow-up throughout the year, not in the form.
1 The performance management cycle
Planning
Agreed objectives, written down
Follow-up
Regular check-ins and feedback
Appraisal
Reviewing the evidence and the results
Reward and development
Linking the outcome to incentives and a plan
An annual cycle that keeps turning — not a single event at the end of the year
2 A good objective
A good objective is specific, measurable, achievable, relevant to the department’s goals, and time-bound.
| A weak objective | A good objective |
|---|---|
| Improve the speed of the close | Close the accounts within 7 working days of month end, starting in Q2 |
| Reduce errors | Cut invoice entry errors to under 1% of total invoices per month |
| Self-development | Complete the data analysis programme and apply it in two quarterly reports before year end |
Balancing objectives
Do not build every objective on quantity. Combine a result (numbers) with a behaviour (collaboration, accuracy, reliability). Someone who hits the number while wrecking the work of others has not succeeded.
3 Feedback
- Prompt: close to the event, not months later.
- Specific: describing a particular behaviour and situation, not a general trait of the person.
- Balanced: given for good work as readily as for shortfalls.
- Forward-looking: ending in an agreement about what will happen next time.
Weak: “You’re disorganised and always late.”
Professional: “The quarterly report reached me three days after the deadline, which delayed presenting it to management. What held it up? Let’s agree that you send me a draft two days before the deadline next time.”
The difference: the first is a judgement on the person that provokes defensiveness; the second describes an incident and ends in an actionable agreement.
4 Appraisal biases
| Bias | Description | Remedy |
|---|---|---|
| Recency | Judging on the last two months and forgetting the rest of the year | A record of achievements and observations kept all year |
| Central tendency | Giving everyone an average rating to avoid awkwardness | Requiring every rating to be justified with evidence |
| Leniency or severity | One manager rates everyone high, another rates everyone low | Calibration between managers before results are approved |
| Halo effect | One attribute generalised to every dimension | Rating each criterion separately |
| Personal bias | Favouring whoever resembles us or flatters us | Written evidence and a second-party review |
5 Handling underperformance
When weak performance persists despite feedback, a written performance improvement plan is opened, covering:
- A description of the gap in facts and figures, not impressions.
- The expectation, clearly: what exactly is the required standard?
- The support offered: training, coaching, or a change in how tasks are allocated.
- A defined period with check-in points along the way.
- The possible outcome if performance does not improve.
A legal caution
Disciplinary action and termination are governed by labour law, with conditions, procedures and notice periods that must be followed. Address performance managerially first, and consult the law and a specialist before any termination decision.
Lesson summary
- Performance management is a cycle: planning, follow-up, appraisal, reward and development.
- A good objective is specific, measurable, relevant and time-bound.
- Balance result objectives with behaviour objectives.
- Feedback is prompt, specific, balanced, and ends in an agreement.
- A performance improvement plan is written, with the gap, the support, a period and a possible outcome.
6 Test your understanding
Three quick questions
Pick the answer you believe is correct and you will see the result immediately.
1. A manager gave their whole team a “good” rating with no differentiation. Which appraisal bias is this?
Clustering in the middle drains the appraisal of meaning, wrongs the high performer and shields the underperformer.
2. Which objective is best worded?
A good objective says what, how much and by when, so it can be measured without dispute.
3. An employee was surprised by a poor year-end appraisal. Where does the fault usually lie?
An appraisal is the culmination of continuous follow-up; surprise is evidence that follow-up was missing.