1. The Annual Review – What’s
the Point?
The Appraisal Process
Appraisals, personal development reviews,
performance reviews, performance
evaluations; whatever you call them these
are described by the CIPD as a process for
individual employees and those concerned
with their performance, typically line
managers, to discuss their performance and
development, as well as the support they
need in their role. They are considered key
to performance management and their
presence within organisations can be traced
as far back as the industrial revolution,
when Robert Owen used coloured wooden
cubes hung above work stations to indicate
the performance of individual employees at
his cotton mills in Scotland. Not surprising
then, that the origins of the appraisal had
quite negative connotations amongst
employees and the process was viewed as a
disciplinary mechanism for punishing poor
performance above all else - a far cry from
the “supportive”, “developmental”
description we have today!
Despite these earlier adverse procedures,
after much refinement and development the
appraisal process is still a common
occurrence in organisations today. In fact
95% report having a formal performance
review system in place. They are the
opportunity to give personal positive and
constructive feedback to set agreed, defined
goals between the line manager and
employee, to show employee appreciation
and recognition, to answer any questions or
discuss concerns or uncertainties, to
determine development or training
requirements and to have uninterrupted one
to one time with an employee. These are
but a few of the benefits of having an
appraisal, all of which have been linked to
increased organisational effectiveness. Yet,
despite this the concept of the performance
appraisal still gets a bad rap, and views that
the process is irrelevant and unhelpful
appear to grow ever more fashionable.
Continuous Performance
Management
Deloitte, Accenture, Microsoft, Google and
Netflix are but a few industry leaders that
have made headlines recently by axing a
formal process altogether and have instead
decided to focus on “continuous
performance management.” This on the
surface seems feasible, it’s innovative and
even leading organisational researcher
Professor Robert I. Sutton stated; “In the
typical case (of performance reviews), it’s

2. White Paperdone so badly, it’s better not to do it at all.”
But why not instead do it better? Don’t get
me wrong, continuous performance
management is something all organisations
should strive for; checking in with
employees once a year for a quick chat on
how they’re doing followed by a bit of box
ticking and form filling is helping no-one,
but removing any formal process and relying
solely on a coaching and feedback culture
could also have its drawbacks. We are
human beings after all, and as such are full
of cognitive biases which are key in
determining our thoughts and actions, and
so feedback carried out by an untrained
manager can rarely be described as
objective. Unless you are working with a
technical role where the line between right
and wrong is clear, performance is usually
measured on results and behaviour. There
are many blurred lines when it comes to
interpreting behaviours, and so much more
opportunity for cognitive biases to influence
the feedback we give. Well-intentioned well-
timed feedback from a great manager can
make all the difference to a career. A quick
observation delivered informally can indeed
have more impact than a formal discussion,
but is it really wise to make this the key
basis on which to drive performance in
businesses?
From a legal perspective, taking a more
flexible approach and removing objective
criteria against which employees are
assessed, could make it harder for
organisastions to justify their treatment of
employees if it is challenged during a
dispute. Instead, if managers were trained
to make performance part of everyday
conversations, then the appraisal should
serve as the formal process of picking up
these familiar themes which have been
discussed throughout the year and taking
stock, deciding what to do with them and
looking forward to what is coming next.
Ultimately, continuous performance
management and the appraisal should work
in partnership, there to complement one
another.
Making it Better
As for making it better, firstly consider the
purpose of your appraisal process. The key
focus should be development (both
individual and organisational) and bringing
in-line personal and business objectives.
Quite often this is not the case and
employees can view any type of review as a
judgement of their performance and so
more of a disciplinary tool. Not only will this
decrease motivation and performance, it will
inhibit the desire to talk openly about
development. Appraisals need to be viewed
positively to get quality conversations with
people and this positive message needs to
come from management. Multiple meetings
should be held across the year discussing
development which should ultimately be
associated with the appraisal rather than
one rushed development conversation at the
end of the year.
Don’t forget to focus on the good stuff.
Achievements small or large should be
recognised yet more often than not people
overlook the small wins and instead focus
on the problems and things that didn’t go
well. Beware of this in the appraisal process.
Of course work issues and learning areas
need to be discussed, constructive feedback
is essential, but this should not overshadow
success. Focussing attention on
achievements and efforts, will go a lot
further than a problem-focused approach
and should always be part of (but without
waiting for) the appraisal process.
One of the most frequent questions I have
been asked when delivering appraisal skills
training is “what about the people that don’t
want to progress?!” This is fine – some
people will be brilliant at their job and quite
happy to remain in that position so make
sure you recognise this. Psychologists
suggest that one of the largest predictors of
satisfaction is social comparison. Employees
that believe they are not being recognised
fairly do not perform as well. If done
properly recognition can significantly boost
performance so make sure you have a good

3. White Paper
understanding of each team member and
their individual strengths, contributions and
motivators and never underestimate the
power of positive feedback.
Make sure this is not all about you. This
should be an opportunity for the employee
to have the focus on their needs and to be
heard so be ready to listen - objectively.
Encouraging employee participation enables
discussions around any differences in
opinion, allows for reciprocity when setting
goals and gives people ownership and
autonomy to maximise their choices, thus
creating employee buy-in, increasing
motivation and engagement. When
discussing plans and objectives, ask how
these can be implemented and be open to
suggestions. Some of the most innovative,
creative business ideas can come from an
appraisal meeting and they don’t have to be
from the manager!
Finally, make sure there is follow through.
One of the biggest drawbacks to the
“yearly” appraisal is that it is just that – it
happens once a year, is filed away and
never mentioned again, until perhaps the
following years’ review when any goals or
aspirations have either been long forgotten
or long surpassed. This only exacerbates
(and quite rightly) the question of “what’s
the point?” It is important that the
employee believes the appraisal is being
taken seriously in order for them to take it
seriously and that comes down to the
manager. Regular performance
conversations were mentioned earlier and
the importance of this is highlighted again
here. Before leaving the appraisal meeting
make a date to review any objectives set in
the next couple of months.
Should We Keep Appraisals?
So are appraisals important? Yes, but only if
done correctly! Not only do they serve as a
trend tracker, identifying development
needs and ensuring fairness, they also form
the basis of a more focussed, more
engaged, more committed work force and
ultimately a higher performing, more
profitable organisation. By drawing on the
ideas promoted by organisations that have
scrapped the appraisal, but combining this
with a formal review process could be the
best way forward.
Further Information
For more information or an outline of what
The Curve Group can deliver in terms of
appraisal skills training please call us on
0845 450 6365.
Written by Amy Cookson