After you have hired and trained employees, you must evaluate how well employees perform their jobs so they know how they are doing, so it is an important part of the manager’s job. Through performance management, managers need to be evaluated for current performance and potential promotions. Performance appraisal is the ongoing process of evaluating employee performance.

In some cases, the evaluation is expanded to everyone the employees come into contact with, including other departments, customers, and suppliers through 360-degree feedback. There is a connection between the organization’s mission and vision and objectives and the performance appraisal process that measure how well strategic objectives are met.

Coaching is a development tool that involves ongoing giving of praise for a job well done to maintain performance or taking corrective action when standards are not met. The HR department develops that process, but it’s primarily the managers’ job to conduct the evaluations, and both need to document and keep records of the assessments. One thing you should know is that people will generally do what they are rewarded for doing (good work) and avoid what they are punished for doing (breaking rules).

To effectively assess performance, you need to have clear expectation standards, and methods to objectively measure performance. The success of performance appraisal does not lie in the method or form used; it depends on your interpersonal coaching skills. There are two types of performance appraisal (PA): developmental and evaluative. A developmental performance appraisal is used to make decisions and plans for performance improvements. An evaluative performance appraisal is used to make administrative decisions.