The appraisal process may be widespread, but it's failing to deliver and is overdue an overhaul, according to a new report from the Institute for Employment Studies.
Managers often lack the time or motivation to make sure that the individual's objectives and work goals fit in with the overall strategic company plan, says the Institute, which talked to nearly 1000 UK managers to establish how effective a role appraisal was playing in focussing businesses on their key aims. IES Director Richard Pearson points out that many appraisal processes have become stale and outdated since they were implemented, and can involve too much bureaucracy, leading both managers and staff to view them as an event to be dreaded.
Marie Strebler, the author of the report, said that as a result, "too often they are rushed discussions where performance ratings are handed out, where petty lapses in performances are picked upon, or where performance-related pay is awarded." The report also highlights how the appraisal process has become burdened by the addition of extra responsibilities such as the identification of training needs or managing poor performance, processes which would benefit from taking place separately. In addition, appraisal needs to become more flexible to reflect flatter organisational structures, says the study, which questions whether decisions on pay and promotion should be included with the process itself.
The report goes on to identify some key pointers for restructuring the appraisal process, recommending that employees are involved in designing and implementing the system and that it is kept as simple as possible to use and understand. It concludes that the appraisal process should be reviewed on a regular basis.
Copies of Performance Review: Balancing Objectives and Content are available from the IES priced £19.95.
