Develop a performance appraisal system. The following steps provide the basis for such a process:
1. Establish performance standards for each position.
2. Create policies on when and how to rate performance. Feedback should be given frequently and as close to the actual performance as possible. The appraisal process should include day-to-day instruction, in which a manager provides employees with constant, immediate, and specific feedback on performance. Formal evaluations should be made annually or semi-annually.
3. Gather data on employee performance during the evaluation process. Keep records of employee performance, noting outstanding accomplishments and deficiencies.
4. Evaluate employee performance, using a behaviorally based measure tied to the important dimensions of the job.
5. Discuss the evaluation with the employee. The interview is the most important part of the performance appraisal. There should be a review of overall progress, a discussion of how current performance fits with the employee's goals, and development of specific action plans for the coming year.
Be sure that policies are well communicated, well understood, and consistently applied. As guidelines for decision-making, they are designed to reduce uncertainty. You should have policies in the areas of:
* working conditions (work hours, vacations, compensation, and benefits)
* performance appraisal (who is evaluated, who evaluates, criteria for evaluation, timing of evaluations, and use of appraisal information)
* recruitment and selection (processes, sources of applicants, and fair labor practices)
* honesty and ethics (expected behaviors that are deemed moral and legal, employer and employee responsibilities)
* orientation, training, and development (p ...