Do Your Performance
Appraisals Measure Up?
CREATIVE FINANCIAL STAFFING
The staffing company managed by professional CPA firms.
An affiliate of Bruner-Cox LLP
Performance appraisals are important in today's work
environment. Properly structured appraisals that objec-
tively and accurately measure job performance serve
many purposes, such as improving employee morale,
identifying training and development needs, and
improving overall communication.
Performance appraisals that are improperly conduct-
ed, however, tend to frustrate employees and make it
difficult to execute employment decisions. Numerous
influences can affect a supervisor's review of an
The “Halo” Effect
Some supervisors evaluate performance based on
their overall impression of the employee. "Good"
employees get a good rating; "bad" employees get a
poor or less favorable rating.
The Central Tendency Effect
Supervisors find it easier to rate most employees as
average rather than focusing on individual strengths
and weaknesses. Consequently, they group most
employees together in the middle.
If an employer's pay scale is non-competitive, an aver-
age employee must receive an above-average rating
to receive a competitive pay increase. The result is a
rating inflation that makes the correction or termination
of the poorest performers difficult.
Preparing a performance appraisal is burdensome, so
many supervisors simply copy an employee’s previous
evaluation. This disregards any significant changes in
the current performance.
Tuning Up Your Review Procedures
Because of the many factors that can sway the accu-
racy of a performance review, supervisors must be
trained and retrained in the proper techniques for
preparing defensible appraisals of their employees.
Here are some steps you can take to ensure that per-
formance appraisals work effectively for your business:
• Carefully select and train evaluators. Provide clear,
written instructions and make sure the evaluators are
familiar with the nature and importan