- Use Positive Feedback - There are two ways of stating the obvious. One is saying, "Hey, you are doing it all wrong here, here and here and if you do not improve you would have to look for another job." The other is saying, "Hey, you are doing such a great job here. I am sure you could do this, this and this to ensure that the job is done to perfection. I am really counting on you on this." Which of the two do you think will motivate an employee to improve his performance?
- Listen to What the Employees are Saying - You are not there to only highlight what the employee needs to do better; you are also there to ensure that the company does better for the employee as well. This is a complementary equation; the employee will work best for the company if the company does its best for the employee. The appraisal time is when most employees express their frustration about their work. Listen carefully and take steps to eliminate irritants and offer the employee the best possible work environment.
- Make Self-Appraisal Compulsory - It is important for the employee and yourself to know what they think about their capabilities and performance levels. The picture projected by comparing self-appraisals with the company appraisals means peer appraisals can be an eye-opening experience. Very often employees feel misunderstood and victimized until they see these comparisons; and when they do they realize where the problem lies.
- Set Measurable Indicators for Improvement - You want the employee to perform better? Set goals. These should be clear cut, measurable, time bound and achievable. Hence, you need to know how much this employee can do, and show him how to reach his goals. It is exhilarating to discover one's inner potential; you should be able to unlock it through the appraisals.
- Reward Improvement with Incentives - Have a reward plan so the employee can look forward to recognition for their achievement besides the satisfaction of the knowledge that now they are doing a great job.