Blog #4 -Human Resource Development - Performance Appraisals

It comes around every 4 months . . . the dreaded performance appraisal!  I have to log into our LDP System (Leadership Development Program) through the company intranet site, evaluate my goals, and have my boss evaluate my evaluation of my goals.  It seems so tedious.  I have a million things to do and now I HAVE TO do this, too?  I just finished my year-end 2010 LDP evaluation.  As painful as it is, my yearly bonus and merit increase depends on it.  Unfortunately, 80% is based on the companies performance, which is mostly out of my control.  The other 20% is strictly based on my accomplishments and  the ratings range from a G4 (below acceptable) to G1 (need to do something extraordinary).  G1s are not attainable.  My boss told me one year he saved the company over $40 million in taxes and he was not given a G1.  So, I have to consider myself lucky to get a G2 - which I did.  But why are these appraisals so important?

According to the article Purpose of Performance Appraisal, there are many reasons why companies mandate these appraisals.  1. Career Development - This is evaluated yearly in the LDP.  It allows my boss to discuss the possibilities of promotion or my involvement in other areas in the business. 2. Feedback - I find this to be the most important part of the LDP.  If I need to be doing something differently or there are areas I can improve upon, this is when the discussion takes place. 3. Administrative Uses of Performance Appraisal - A G2 rating is assigned a certain percentage for bonus and merit increase payouts  4. Performance History - I can see my career progress, which helps me to plan for the future. 5. Organizational Goals - I make sure my individual goals are aligned to the business goals. 6. Job Standards - My responsibilities and what is expected of me are very clear.  7. Documentation Use of Performance Appraisal - My boss and I must both sign the LDP for HR documentation.

So, although it seems very cumbersome, the performance appraisal is important to the company and to me.  It helps me realize my potential as well as provide constructive feedback to help me attain my career goals.  As long as my goals are aligned to the company's goals, the company will benefit from the performance appraisal.  Now that I have my G2 rating, I'm just waiting for pay day!  Oh, wait - Q1 2011 goals are due . . . .