Advising managers: good practice in personal development and appraisal
Advising managers: good practice in personal development and appraisal

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Advising managers: good practice in personal development and appraisal
  • The importance of appraisals
  • Linking the appraisal process to the business's strategy
  • Deciding what type of appraisal system to use
  • Deciding what the appraisal should cover
  • 360-degree appraisals
  • The role of line managers
  • Interim reviews
  • Deciding who is responsible for the appraisal process
  • Whether to link pay to performance
  • more

The essence of any performance management process is the relationship between employee and manager. Both should know what needs to be done to meet their own goals and contribute to those of the organisation as a whole.

The discussion in this practice note takes into account relevant Acas guidance: Acas guidance: How to manage performance (October 2014). This guidance has no statutory force and does not confer employment rights, but it is a useful indicator of good management practice.

The importance of appraisals

An effective performance management process focuses on:

  1. aligning the workforce with the strategic aims of the business

  2. improving employee performance

  3. supporting employee development and retention

  4. driving better business results

Good performance management helps employees and managers to understand:

  1. what the business is trying to achieve

  2. their role in helping the business achieve its goals

  3. the skills and competencies that they need to fulfil their role

  4. the standards of performance required

  5. how they can develop their performance and contribute to the development of the business

  6. how they are doing

  7. when there are performance problems

Linking the appraisal process to the business's strategy

Before a manager can review an employee's performance, he or she must previously have set objectives for the employee. These objectives should be linked to the business’s strategy and business plan: